Navigating Legal Liability and Compensation Options in a Death Compensation Case

I am one of the Directors in a Private Limited Company. Our registered office is in Delhi. One of our staff members passed away during the installation of equipment at a site in Amroha (Moradabad). The staff member belonged to Agra. Our company paid the medical bills when he was admitted to the hospital for 4 days and did whatever best could be done, but unfortunately, he passed away due to a head injury. Now, his family members have filed a case in Agra against the Company and all directors.

I want to know:
1. Are all/any Directors liable in this case?
2. Can the case be transferred to Delhi?
3. The Company is not in a position to pay a hefty amount in one go or even in parts in small intervals of time as the company is already running at huge losses (clearly visible in the balance sheets and bank statements). What are the other options to pay compensation?

In the end, it is not that the company does not want to pay. The company wants to pay the salary of the staff for, let's say, 5 years or 8 years.

With regards,
Rohit Nanda

You have not been able to present the situation which can be replied to in laws. Many questions are there:
- What was the age, duration of service, post/designation, and qualification of the employee?
- Why did the company pay the medical bills? Was he not on the payroll? Was there insurance coverage? ESIC?

It is better to meet a labor lawyer in your city. The case can only be filed at the place of the incident. A labor lawyer will handle the documents properly. In the absence of proper paperwork from the employer, the case will become messy.

You can also discuss the legal aspects with the lawyer. I hope you can have a good outcome after hiring a labor lawyer.

Dear Rohit,

In my opinion, it would be better to get in touch with the deceased's family member who has filed the case in Agra and try to get an idea of the compensation amount they are looking for. This information may be intimated to the management, and they may also be present while the matter is being discussed. It is always better to settle the matter amicably, out of court. As you know, since they have filed a case and your company, it appears, has not covered the employees under ESI, this will be viewed very seriously.

Since the management is prepared to pay 5/8 years' salary as compensation to the deceased's family, you can try for this first and see whether it works out or not.