SC urges update to outdated ‘dependent’ definition in Employees’ Compensation Act

New Delhi: The Supreme Court has called on the legislature to revisit and modernise the definition of “dependent” under the century-old Employees’ Compensation Act, 1923, highlighting its diminishing relevance in today’s socio-legal context.

A Bench comprising Justices Rajesh Bindal and Manmohan flagged the outdated language in Section 2(1)(d)(iii)(d) of the Act, which defines a dependent as “a minor brother, or an unmarried sister or a widowed sister if a minor.” The court noted the improbability of encountering a widowed minor sister in contemporary times, particularly after the enactment of the Hindu Marriage Act, 1955.

The definition no longer reflects present-day realities, the Bench observed, recommending that the matter be referred to the Law Commission of India for appropriate legislative amendment. The court directed that a copy of its order be sent to the Ministry of Law and Justice for further action.

The observations came while dismissing a Special Leave Petition (SLP) challenging a Karnataka High Court ruling that upheld compensation for two widowed sisters of a deceased employee. The insurance company had contested the award, arguing that the Act only recognises “a widowed sister if a minor” as a dependent, and the sisters in question were adults.

While the Supreme Court declined to interfere with the High Court’s decision due to the limited financial stakes involved, it left the legal question open for future consideration. The court also instructed its registry to notify the respondents, allowing them, or their legal heirs, if deceased, to withdraw the compensation amount along with accrued interest.

In a related order dated 24 August 2023, the apex court had earlier sought the Union government’s assistance in interpreting the term “dependent”, noting that the deceased worker’s adult widowed sisters were financially reliant on him.

(Inputs from IANS)

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