Delhi High Court on Compensation Bar under ESI Act: Employees’ Compensation Award Quashed.

Headnote:

The Delhi High Court quashed an order of the Employees’ Compensation Commissioner awarding ₹7,64,506 with 12% annual interest to a workman injured during employment, holding that the claim was barred under Section 53 of the Employees’ State Insurance Act, 1948. The Court ruled that once an employee is covered under the ESI Act and has received benefits thereunder, the Commissioner under the Employees’ Compensation Act, 1923 has no jurisdiction to grant additional compensation for the same injury.

Background:

• The respondent (claimant), aged 18, was employed at the petitioner’s factory. On 19 April 2016, his left hand was crushed in a moulding machine accident, resulting in amputation below the wrist.

• He was treated at ESI Hospital and later at Safdarjung Hospital, followed by further surgery at Hi-Tech Ortho & Trauma Centre, Bihar.

• The claimant produced FIR No. 0337/2016, medical documents, photographs, and a disability certificate showing 60% permanent disability.

• The petitioner (employer) did not appear before the Employees’ Compensation Commissioner, and the case proceeded ex parte.

• The Commissioner took ₹8,000 as the notional monthly wage, applied the 226.38 multiplier with 60% disability, and awarded ₹7,64,506 compensation with 12% interest per annum from 26.09.2016.

• The employer challenged this award, arguing that the workman was already covered under the Employees’ State Insurance Act, 1948, and that Section 53 of the ESI Act barred any additional claim under the Employees’ Compensation Act.

Court’s Observations:

• It was recorded that the Employees’ State Insurance Corporation (ESIC) had already assessed the workman’s permanent disability at 60% through an order dated 15.09.2023 and granted him permanent disability benefits of ₹16,020 per day effective from 16.06.2016.

• The ESIC ledger confirmed continuous payment of allowances to the claimant from 20.04.2016 to 20.03.2025.

• Section 53 of the ESI Act expressly bars insured persons or their dependents from claiming compensation under any other law, including the Employees’ Compensation Act, for employment injuries.

• Since the respondent had already been granted ESI benefits for the same injury, the Commissioner’s award was without jurisdiction and contrary to statutory provisions.

• The Court also noted that both the employer and ESIC agreed that the ESI benefits had been received by the workman, leaving no further claim maintainable under the EC Act.

Decision:

The Delhi High Court allowed the writ petition and quashed the impugned order of the Employees’ Compensation Commissioner dated 24 October 2017.

All pending applications were disposed of.

Legal Provisions Discussed:

• Section 3 & 4, Employees’ Compensation Act, 1923 – Employer’s liability for compensation and method of calculating compensation.

• Section 53, Employees’ State Insurance Act, 1948 – Bar against receiving or recovering compensation under other laws.

• Article 226, Constitution of India – High Court’s power to issue writs.

Citation: 2025:DHC:6733

Case: Mukesh v. Sachin & Anr.

Court: High Court of Delhi at New Delhi

Coram: Hon’ble Ms. Justice Chandrasekharan Sudha

Date of Decision: 13 November 2025

Writ Petition (C): 6733 of 2018 & CM Appl. 25613/2018