Accident on way to office to be covered for compensation: Supreme Court

New Delhi: The Supreme Court on Tuesday said “accident arising out of and in the course of employment” occurring in Section 3 of the Employees Compensation Act, 1923 would include all mishaps while commuting to and from duty.

In a judgment, a bench of Justices Manoj Misra and K V Vishwanathan cleared the doubt and ambiguity surrounding the phrase “accident arising out of and in the course of employment” insofar as cases concerning accident occurring to employees while proceeding to work and vice versa.

"Insofar as accidents occurring to employees while proceeding to the workplace and vice versa that Section 51E was enacted in the ESI Act. In view of that, we have no manner of doubt that the said amendment is clarificatory in character and will have retrospective effect," Justice Vishwanathan wrote on behalf of the bench.

The court said Section 51E (accidents happening while commuting to the place of work and vice versa) of the ESI Act can be given retrospective effect so as to cover an accident that has taken place on April 22, 2003 when the Section was enacted on June 01, 2010.

The EC Act was enacted to provide for the payment by certain classes of employers to their employees of compensation for injury by accident. It is also a beneficial piece of legislation like the ESI Act, which can be considered as declaratory and clarificatory to give a retrospective effect, the bench noted.

The court set aside the Bombay High Court's order, while acting on an appeal Davishala and others, family of a watchman who died on way to his factory on April 22, 2003.

The High Court had held since the deceased was on his way to his employment, the accident cannot be said to have its origin in the employment.

Allowing the appeal, the court restored the order by the Commissioner for Workmen’s Compensation and Civil Judge, Senior Division, Osmanabad, who awarded a sum of Rs 3,26,140 along with interest at the rate of 12 per cent per annum from May 22, 2003 to the family members.

The claim petition was filed under Employees' Compensation Act, 1923.