“A LARGER BENCH OF SUPREME COURT TO DECIDE WHETHER THE INSURANCE AMOUNT PAID UNDER THE ESI ACT IS A SIMILAR BENEFIT TO CLAIM FOR COMPENSATION UNDER MOTOR VEHICLE ACCIDENT”
In this case an employee was travelling in a vehicle owned by the employer/owner of the vehicle which met with an accident.
A claim for compensation was filed before the Motor Accident Claims Tribunal (MACT) which awarded compensation to the aggrieved above.
However the employer/owner of the vehicle challenged the above decision of the MACT before High Court contending that the claim before the MACT was not maintainable as barred under Section 53 of the Employees’ State Insurance (ESI) Act, 1948.
The High Court on the above ground of the employer/owner reversed the decision of the MACT and dismissed the claim.
The employee appealed against the decision of the High Court before Hon’ble Supreme Court contending that Employees’ State Insurance (ESI) Act, 1948 bar comes into play only if similar benefit has been availed by the employee which is not the case here.
It was submitted before the Hon’ble Supreme Court that employee due to accident had to go for amputation of lower limb and benefit paid to him under ESI from insurance amount which factors his contribution as well and cannot be treated as compensation as under MACT.
The Hon’ble Supreme Court was of the view on the submissions made by the parties and upon relevant judgments quoted on the subject that the Hon’ble Supreme Court has although referred to relevant provisions of the ESI as in the present case in past however there has been no authoritative pronouncement on whether the insurance amount paid under the ESI Act is a similar benefit to claim for compensation under motor vehicle accident so as to bar the same.
Accordingly the hon’ble Supreme Court has referred the subject matter for the consideration of the larger bench of the Court.
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