Can an Old Workplace Injury Lead to New Legal Trouble? Seeking Advice on Labor Court Risks

In this case, a worker was injured in our factory (cut his finger) in 2003. At that time, our company was not covered by ESIC. The management provided him with some amount and covered all treatment expenses. After some years, the company closed down. However, a year later, the company recruited him into another company. Now, he is demanding compensation of Rs. 1 lakh for the injured finger and threatening the company with blackmail. Can he challenge us in the labor court based on the above grounds?

Please advise on how to proceed in this situation.

Hi Raja,

Can you confirm what is that some amount? Has management paid him according to the Workmen's Compensation Act (Employees' Compensation Act)? Workmen's compensation needs to be paid in the absence of ESIC, considering the loss of a human body part and his age factor.