Premature locking of compensation in fixed deposits for elderly claimants with urgent medical needs is unsustainable.

The petitioner, a 60-year-old workman, sustained fractures in both hands due to an industrial accident on September 9, 2019, while working at his employer's factory

A claim application under the Workmen Compensation Act, 1923, resulted in a compromise settlement dated December 11, 2023, where the respondent Insurance Company agreed to pay Rs. 2,93,933/-

Upon the deposit of said amount, the learned Commissioner, Labour Court, Rajkot, vide order dated February 21, 2024, permitted the disbursement of only Rs. 44,090/- and directed the remaining balance to be placed in a fixed deposit for five years

The petitioner challenged this restrictive disbursement order before the High Court

Whether the Labour Court’s direction to invest the majority of the compensation amount in a long-term fixed deposit was justified given the petitioner’s age and financial exigency

The court primarily considered Articles 226 and 227 of the Constitution of India regarding the High Court's supervisory jurisdiction

It further applied the remedial principles of the Workmen Compensation Act, 1923, which aims to provide timely financial relief to employees for employment-related injuries

The court weighed the discretionary power of the Commissioner to protect compensation funds against the actual needs and circumstances of the claimant

The Court observed that the petitioner is a senior citizen (60 years old) who suffered debilitating injuries—fractures to both hands—requiring surgeries

The Court noted that the Insurance Company had already accepted the settlement and did not challenge the award

It reasoned that given the petitioner's advanced age and "dire need of money" for sustenance following an employment injury, a five-year lock-in period for the compensation funds was inappropriate

The Court found that the interest of justice would be better served by allowing the petitioner immediate access to the full settlement amount rather than keeping it in a fixed deposit

The Court held that the petitioner is entitled to the full disbursement of the compensation. The Commissioner, Labour Court, Rajkot, was directed to disburse the entire amount of Rs. 2,93,933/-, along with any accrued interest, to the petitioner after following due process