1981 PLP 757 (PLC(CS))

‑‑ S. O. 10‑B [as inserted vide Labour Laws (Amendment) Ordinance (IX of 1972) and amended vide Act XI of 1976)‑‑Provisions of S. O. 10‑B‑Prospective‑Not retrospective‑Worker dying of natural death in March, 1972 prior to promulgation of Labour Laws (Amendment) Ordinance, 1972 claim of heirs of deceased workman for compensation towards Group Insurance scheme, held, not maintainable. Jannat Textile Mills v. Commissioner, Workmen's Compensation, Hyderabad 1980 P L C 472 rel. Raes M. Mushtaq for Appellant. Nemo for Respondent. Date of hearing : 20th September, 1980. This appeal is directed against the order passed by the learned Commissioner, Workmen's Compensation, Hyderabad, on 17th January, 1980, awarding compensation amount of Rs. 8,000 under Standing Order 10‑B, to the heirs of one Sher Ali Shah, who was an employee of the respondent corporation.

2. It is common ground that Sher Ali Shah died on 30th March, 1972. However, Standing Order 10‑B, making the employer liable to ensure his permanent workman under the Group Insurance Scheme and in the case of failure to do so, requiring him to pay compensation to the workman, or in case of his death, to his heirs, was brought on the Statute Book by Ordinance IX of 1972, which was promulgated on 7th September, 1972. In other words, the death of Sher Ali Shah was prior to the enactment of Standing Order 10‑B and hence the respondent corporation cannot be made liable under the law which was prospective in operation and came into force after the death in respect of which the compensation has been awarded. Moreover, Standing Order 10‑B, as it was originally enacted, did not cover natural death and disability. Provision in this behalf was made in Standing Order 10‑B by Act XI of 1976, which came into force with effect from 16th April, 1976. It was pointed out by learned Judge of the Karachi High Court in the case of Jannat Textile Mills v. Commissioner, Workmen's Compensation, Hyderabad (1980 P L C 472), that prior to 16th April, 1976, when Act XI of 1976 came into force, the employer, was under no obligation for obtaining insurance of his permanent workman against his natural death and hence claim for insurance amount in respect of deceased workman whose natural death occurred prior to 16th April, 1972, was not maintainable by the Commissioner, Workmen's Compensation. In the instant case, the position is much worse for compensation has been awarded under Standing Order 10‑B in respect of natural death which occurred before the said Order was enacted.

3. For the foregoing reasons, the order of the learned Commissioner cannot be maintained. It is a matter of some regret that the learned Commissioner has failed to appreciate that liability created under the Statute commences from the date either when the Statute came into force or as is otherwise provided in the Statute. Under Standing Order 10‑B, the liability is prospective and hence no claim for compensation can be awarded under the said Order in respect of death or injury which occurred before the coming into force of the said Order. The appeal is, therefore, allowed. The amount of compensation deposited by the appellant is ordered to be refunded. Appeal accepted.