New Delhi, Oct 29 (NationPress) The Supreme Court has urged the legislature to reevaluate the antiquated stipulations within the Employees’ Compensation Act, 1923, highlighting the necessity for a transformation of century-old labor regulations.

A panel of Justices Rajesh Bindal and Manmohan noted that specific sections outlining “dependents” in the 1923 Act have become irrelevant in today's socio-legal landscape.

It highlighted the impractical nature of the current language in Section 2(1)(d)(iii)(d) of the Act, which defines a dependent as “a minor brother, or an unmarried sister or a widowed sister if a minor.”

“The Employee’s Compensation Act was established in 1923. The definition of the term ‘dependent’ in Section 2(1)(d)(iii)(d) refers to ‘a minor brother or an unmarried sister or a widowed sister if a minor.’ Nowadays, it is exceedingly rare to encounter a widowed sister who is a minor, especially following the enactment of the Hindu Marriage Act, 1955,” remarked the Justice Bindal-led panel.

To tackle this matter, the Supreme Court mandated that a copy of the order be sent to the Ministry of Law and Justice for appropriate action.

“We believe the issue merits consideration by the Law Commission of India for a suitable amendment of the aforementioned provision or any other in the 1923 Act,” the order stated.

“A copy of the order should be sent to the Secretary of the Ministry of Law and Justice, who may further refer it to the Chairperson of the Law Commission of India,” it added.

The Special Leave Petition (SLP) originated from a ruling by the Karnataka High Court, which confirmed compensation for two widowed sisters of a deceased employee, acknowledging them as his dependents under the Act.

The insurance agency contested the award, asserting that the statute solely recognizes a “widowed sister if a minor” as a dependent, and that the two widowed sisters were not minors at the time of the employee's passing.

After considering arguments from both parties, the apex court stated: “Given the amount involved in the current appeal, we do not wish to interfere with the contested judgment. The appeal is thus dismissed, while leaving the question of law open.”

The highest court's registry was instructed to notify the respondents, including the two widowed sisters, about the dismissal of the appeal to facilitate the withdrawal of the compensation amount deposited in the Karnataka High Court.

“Should any of the aforementioned respondents have passed away, their legal heirs are authorized to withdraw the sum along with any accrued interest,” clarified the Justice Bindal-led panel.

In a prior order dated August 24, 2023, the Supreme Court had requested assistance from the Union government to interpret the term “dependent,” noting that the deceased worker was survived by two widowed sisters who, although not minors, were financially reliant on him.