The Supreme Court of India
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New Delhi: The Supreme Court asked the Law Commission to examine definition of 'dependent' under the Employee's Compensation Act, 1923, especially in case of “a minor brother or an unmarried sister or a widowed sister if a minor".
A bench of Justices Rajesh Bindal and Manmohan felt that in the present time, no one would normally find a widowed sister who is a minor, especially after enactment of the Hindu Marriage Act, 1955.
The bench, thus, said, "In our view, the matter needs to be considered by the Law Commission for suitable amendment of Section 2(1)(d)(iii)(d) or any other in the 1923 Act."
The court dismissed an appeal filed by the New India Assurance Company Ltd against the Karnataka High Court's order of October 5, 2009.
The insurance company submitted that the Commissioner had treated the widowed sisters of the deceased employee as his dependents under Act and awarded compensation in their favour.
It argued that the two widowed sisters of the deceased employee do not qualify as dependents of the deceased employee, as contemplated under the statute.
As per Section 2(1)(d)(iii)(d) of the Act, the expression used is “a minor brother, or an unmarried sister or a widowed sister if a minor”, who would be treated as dependents of the deceased employee.
The court rejected the contention and allowed the employees' dependents to withdraw the money deposited with the high court.