SC dismisses New India Assurance appeal, flags outdated definition of ‘Dependent’ in 1923 Act, orders Ministry of Law & Justice to refer matter to Law Commission
19/11/2025
NEW DELHI, Nov 18: The Supreme Court on Thursday dismissed a 14-year-old appeal filed by New India Assurance Company Ltd., declining to interfere with a Karnataka High Court judgment that had upheld compensation awarded to the widowed sisters of a deceased employee.
A Bench of Justice Rajesh Bindal and Justice Manmohan observed that although the amount involved was not significant enough to warrant interference, the case exposed an outdated statutory definition under the Employee's Compensation Act, 1923.
While the insurer argued that the deceased's widowed sisters could not be treated as dependents under Section 2(1)(d)(iii)(d), the Court noted that the provision only recognises "a minor brother or an unmarried sister or a widowed sister if a minor" as dependents - a formulation that the Bench described as anachronistic.
"In the present time, no one will normally find a widowed sister who is a minor, especially after the enactment of the Hindu Marriage Act, 1955," the Court remarked, calling for a suitable legislative amendment.
The Bench directed that a copy of the order be sent to the Ministry of Law & Justice for referring the issue to the Law Commission of India for reconsideration of the provision.
The Court also instructed the Karnataka High Court to release the compensation amount to the surviving claimants or their legal heirs.
The appeal, reserved on August 17 and re-listed on the Court's directions, witnessed the participation of the Union of India, represented by the Solicitor General, after the Court sought its assistance on the definitional issue.
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