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Posted by Sammelan Kavi

05/09/2014 01:42:21

Friends and learned folks My query is related to Section 8, subsection 1, Para 2 of E.C.Act, 1923. which reads as follows 8(1)... Provided that, in the case of a deceased workman, an employer may make to any dependant advances on account of compensation of an amount equal to three months' wages of such workman and so much of such amount as does not exceed the compensation payable to that dependant shall be deducted by the Commissioner from such compensation and repaid to the employer." Me and one of my advocate friend were discussing this and have developed difference of opinion. According to me, verbiage of the above para suggests that the employer making too much of excessive payments directly to dependents of deceased employee are exposed to risk of not receiving deduction from the commissioner. Particularly, if compensation computed works out at 3,50,000 and employer paid 4,00,000 directly to one of the dependents, he may not only not be entitled to get refund of 50,000/-, commissioner may also treat 3,50,000 as still outstanding.


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