Can a District Magistrate Decide Compensation in Plant Accidents? Understanding Legal Boundaries and Compliance

Authority of Collector/District Magistrate in Compensation Cases

In the case of a plant fatal/nonfatal accident, can a Collector/District Magistrate direct the payment of a lump-sum compensation to the family of the deceased/injured at their discretion? If so, under which legal provision?

Compliance with the Employee Compensation Act

Furthermore, how can the process under the Employee Compensation Act be followed while complying with the collector's order? Is the order of the collector challengeable before any court of law?

Under the Employee Compensation Act, the powers of a Collector or District Magistrate to direct the payment of compensation in the event of a fatal or non-fatal accident in a plant are governed by Section 4A of the said Act. This provision empowers the Collector to order the employer to pay compensation directly to the dependents of the deceased worker or the injured worker.

To comply with the Collector's order while following the process under the Employee Compensation Act, the employer should take the following steps:

🔹 Upon receiving the Collector's direction, the employer must calculate the appropriate lump-sum compensation amount based on the provisions of the Act.
🔹 Make the payment to the family of the deceased worker or the injured worker within the specified timeframe as directed by the Collector.
🔹 Maintain proper documentation of the payment made, including details of the compensation amount and the recipients.

It's important to note that the order of the Collector directing compensation can be challenged before the appropriate court of law if there are grounds to dispute the decision. However, such challenges should be made within the legal framework and procedures set forth by the relevant laws and regulations.

In summary, the Collector or District Magistrate can indeed direct the payment of compensation in cases of plant accidents under the provisions of the Employee Compensation Act, and employers must adhere to these directives while ensuring compliance with the legal requirements and procedures outlined in the Act.