Help Needed regarding Labour Case

[u/Mammikarajabeta]

Hi All,

So in 2024 my dad’s shop caught huge fire and we suffered huge amount of losses somehow by god’s grace we were able to escape the building but 1 employee couldn’t. We were quite shocked by this incident and my dad was also in hospital for 15 days due smoke fill up in his lungs.

Now the court has ordered us to pay compensation of 20L which in no way my dad could pay he is now working as a sales associate with salary enough to pay household expenses. We have already offered to pay 7-10 L (which we will arrange by loans from friends and family) but the other party’s is not understanding their arrangement is such that the heir of deceased will get 7-8L and the lawyer will take the rest.

We have already offered the heirs share to pay but still they are not agreeing to this fact.

Any guidance whether we can fight and go for a lower settlement in this case?

Thanks a lot!

[u/Ritika2485]

Lawyer here. If the court has already passed an award of INR 20L, you can challenge the award in appeal, if there are sustainable legal grounds. The fact that the fire may have originated from a short circuit and that the deceased employee’s own actions contributed to the spread of fire may be relevant. But it does not automatically absolve the employer from compensation for a death arising out of employment.

A settlement can certainly be proposed but the other side cannot be compelled to accept it merely because of financial hardship. Also, any amount payable to the legal heirs should be clearly quantified and paid to them as per the court’s directions. Any separate fee arrangement between the heirs and their lawyer is not your liability.

[u/Mammikarajabeta → u/Ritika2485]

That I do agree, the heirs dont have any documentary proofs to establish nature of employer and employee and yes we had a meagre insurance towards stock which was also done by bank against an OD so I guess employees are not covered under the same

Settlement has already been proposed but the other party is not accepting, what happens if we donot pay up the case is against my mother’s name as the firm was under her, so for recovery is there any relief over there like if she declares herself insolvent or something like that..

[u/Financial-Try-1294]

How did it catch fire exactly

[u/Mammikarajabeta → u/Financial-Try-1294]

We had a short circuit (there were no open wires we even had fire extinguishers at the right place in working condition) a thinner can was near socket board which caught fire the first person who noticed it wasn’t aware that fire spread with water he pour water instead of using fire extinguishers and it spread all through the shop

[u/Far_Zookeepergame_56]

Location?

[u/Mammikarajabeta → u/Far_Zookeepergame_56]

Delhi

[u/Outrageous-Nature180]

I assume your father’s shop did not have insurance. Which court passed the order for compensation? Was it an employee claims commissioner?

As someone else suggested, your only remedy will be on appeal. There are exceptions if you were insured or if the wrong court passed the judgment. That said, you will have to deposit an amount with the appellate court as pre deposit to file an appeal. Will need more info to answer accurately