Authority: High Court of Orissa at Cuttack

Order Date: 22nd June 2026

Case Overview

  • Parties: Appellant – Kalinga Jute Products Pvt Ltd (Employer); Respondents – Smt. Sabita Rout (widow) and other family members of the deceased, Prasanta Kumar Rout.
  • Nature of Proceeding: Appeal against the award of compensation under the Employees Compensation Act, 1923 (E.C. Act) in E.C. Case No.2 of 2021.
  • Accident Details: The deceased, a Machine Operator‑cum‑Mechanic, died on 24‑01‑2021 while performing duties at the workplace.
  • Initial Deposit: Employer deposited Rs 6,92,579 on 22‑02‑2021, calculating wage at Rs 348 per day (semi‑skilled rate).
  • Dispute: Respondents claimed the deceased earned Rs 15,000 per month (Rs 500 per day) as a high‑skilled labourer; employer insisted on Rs 348 per day.
  • Legal Framework:
  • Section 4(1‑B) of the E.C. Act allows the Central Government to specify monthly wage by notification.
  • Notifications: 31‑May‑2010 (Rs 8,000) and 03‑Jan‑2020 (Rs 15,000) prescribing monthly wage limits.
  • Supreme Court in K. Sivaraman & Ors. v. P. Sathishkumar (2020) held that the 2009 amendment removed the deeming cap, requiring actual wages to be considered for compensation.
  • Prior Court Orders:
  • Order dated 04‑08‑2022 computed compensation at Rs 6,92,579, treating Rs 15,000 as the maximum wage limit.
  • Review (RVWPET No.206 of 2022) led to recall of the 04‑08‑2022 order for erroneous interpretation of the wage ceiling.
  • Evidence Presented:
  • Claimants’ witnesses (widow, daughter, brother) testified the deceased earned Rs 500 per day.
  • Employer’s witnesses (personal manager and supervisor) testified wage of Rs 308‑Rs 348 per day and that the employee was an apprentice/unskilled worker.
  • No wage register was produced by the employer.
  • National Trade Certificate and prior experience in machinery work supported claim of high‑skilled status.
  • Minimum Wage Rates on Accident Date: Highly skilled – Rs 458.05/day; Skilled – Rs 398.05/day; Semi‑skilled – Rs 348.05/day; Unskilled – Rs 308.05/day.
  • Court Reasoning:
  • The actual monthly wage must be established by acceptable evidence; absent clear evidence, prescribed minimum rates apply.
  • Given the deceased’s qualifications, experience, and consistent claimant testimony, the court accepted Rs 500 per day (Rs 15,000 per month) as the correct wage.
  • The court affirmed the learned Commissioner’s award of Rs 11,48,175, noting the earlier error in treating Rs 15,000 as a statutory maximum.

Final Outcome

  • The appeal is dismissed; the compensation award of Rs 11,48,175 is confirmed.
  • The employer must pay the award, adjusted for the earlier deposit of Rs 6,92,579, to the respondents within two months of the judgment.

Topics: Employees Compensation Act, Wage Determination