Report No. 134

3.9. Employer's obligation to deposit the payment of the amount ordered by the Commissioner in order to be entitled to prefer an appeal under section 30.-

The Legislature has in its wisdom provided that the deposit of the amount ordered to be paid by the employer in respect of compensation payable to the workman or to the dependants of the deceased workman shall be a condition precedent for preferring an appeal. A reference may be made to the third proviso to sub-section (1) of section 30 which reads thus-

"Provided further that no appeal by an employer under clause (a) shall lie unless the memorandum of appeal is accompanied by a certificate by the Commissioner to the effect that the appellant has deposited with him the amount payable under the order appealed against."

In the proviso, a reference has been made to an appeal under clause (a) having regard to the fact that at that point of time no appeal was provided against an order awarding interest or penalty under section 4A. Subsequently, by virtue of section 15 of Act 8 of 1959, which came into force with effect from June 1, 1959, sub-clause (aa) has been added to clause (1) which provides for an appeal against an order awarding interest or penalty under section 4A. The resultant position is that while the employer would have to deposit the amount ordered to be paid as compensation for preferring an appeal under clause (a), he will not be required to make any such deposit in respect of an appeal directed against an order awarding interest or penalty under clause (aa) of section 30(1).

The same reasoning will apply pro tanto to an appeal against an order awarding interest or penalty. If the employee has to make recourse to recovery proceedings after a protracted litigation, it will work great hardship. It is, therefore, desirable that the third proviso to section 30(1) be amended by substituting the words "Provided further that no appeal by an employer under clause (a) shall lie" by the words "Provided further what no appeal by an employer under clauses (a) and (aa) shall lie unless.".

We, therefore, recommend accordingly.