Can An Award Be Given To An Employee Under Industrial Dispute Act Where There Was No Dispute?

Award Without Dispute Under IDA – KRSTC vs K Shivaram

In the suit between KRSTC, 2nd Depot vs, K. Shivaram[1], the petitioner filed a petition under Articles 226 and 227 of the constitution to quash the award passed in 2016 in favour of the respondent.

An employee of KRSTC was awarded INR 2,97,120 with 6% interest per annum. He is the respondent of the said case. The amount awarded was given on the basis of the accident that he met while driving a bus at the time of employment during working hours.

The respondent was issued a certificate by a medical professional clarifying that he cannot continue his employment as a driver. Following this, the petitioner gave him minimal work and also paid him a salary. The respondent was on leave to recover from the accident for the duration of which the petitioner paid him his full salary.

However, the respondent filed a petition MVC No. 1067/2004 claiming compensation. A sum worth INR 78,728 was awarded and the same was given by the petitioner.

The respondent then sent a notice to the petitioner claiming compensation of INR 5,50,000 with an interest of 12% per annum as he had contracted a disability during working hours. The said notice was initiated under section 33C (2) of the Industrial Dispute Act, 1947. The Labour Court in Mangalore awarded him a compensation of INR 2,97,120.

Since the respondent was already awarded compensation under the Motor Vehicles Act, he could claim further awards, but he proceeded to claim compensation under Industrial Dispute Act, 1947. However, it was denied since there is no industrial dispute involved. He thus could not claim the award under the said act.

When the case was moved to the Hon’ble Supreme Court, the award was set aside.     

[1] https://www.livelaw.in/pdf_upload/employees-compensation-416952.pdf