Compensation paid by employer to deceased heirs will not make absolved from other statutory obligations: Madras HC

Compensation paid by employer to deceased heirs will not make absolved from other statutory obligations: Madras HC

Madras High Court in Rajesh Kumar vs. State of Tamil Nadu Crl RC 901/2018, while examining one of the questions as to whether the payment of compensation by the employer of a factory to the legal heirs of the deceased workers is sufficient compliance in lieu of statutory obligation to provide insurance cover to the said workers as required under Sections 87 and 95 Schedule XXIV, Article 12 A of Tamil Nadu Factories Rules 1950, observed that considering the employer has not examined the beneficiaries to whom the said compensation was payable, therefore payment of compensation cannot be proved. Further, the Court observed that even if the payment of compensation is proved, it will not absolve the employer for the violation of the statutory obligation.

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