The Supreme Court has urged the Union Government to consider amending the Employees Compensation Act, 1923, to expand the definition of “dependent” to include an adult widowed sister. The Court observed that the current definition—restricting “widowed sister” to only those who are minors—no longer reflects present-day social realities.

A Bench comprising Justices Rajesh Bindal and Manmohan made this recommendation while upholding compensation granted to two widowed sisters of a deceased workman. The Bench dismissed an appeal filed by New India Assurance Company Ltd., which had contended that since the sisters were majors at the time of their brother’s death, they did not qualify as dependents under the statute.

Current Definition and the Court’s Observation

Under Section 2(1)(d)(iii)(d) of the Employees Compensation Act, the term dependent presently covers “a minor brother or an unmarried sister or a widowed sister if a minor.”

The Supreme Court noted that this language is outdated, particularly in the context of modern family structures and the Hindu Marriage Act, 1955, which makes it nearly impossible to find a minor widowed sister in today’s circumstances. The Court remarked that adhering strictly to such an archaic provision would result in unjust exclusion of deserving claimants.

While the Court chose not to interfere with the High Court’s decision granting compensation to the sisters, it kept the question of law open, meaning that the interpretation of “dependent” remains unsettled for future cases.

Recognizing the legislative gap, the Bench emphasized that the issue requires policy-level consideration rather than judicial interpretation. It directed that a copy of the judgment be forwarded to the Ministry of Law and Justice, which may in turn refer the matter to the Law Commission of India for possible amendment to the 1923 Act.

The Court reasoned that an adult widowed sister, who was financially dependent on the deceased, should not be denied compensation merely due to her age. The inclusion of such dependents would align the statute with current social and economic realities, where many widowed women rely on their siblings for support.

“The matter needs to be considered by the Law Commission of India for suitable amendment of the aforesaid provision or any other in the 1923 Act,” the Bench directed.

Case Title: The New India Assurance Company Ltd. v. Kogga & Ors.