In a significant ruling, the Kerala High Court dismissed an appeal filed by the Food Corporation of India (FCI), reaffirming that compensation awarded to an injured worker can exceed the amount originally claimed. The court emphasized that ensuring “just compensation” is the primary duty under the law.
Background of the Case
The case arose from an accident in 2007 involving a headload worker employed at an FCI godown in Thiruvananthapuram. While loading rice bags, one bag fell on his legs, causing fractures in both legs and resulting in long-term deformity.
The worker initially sought compensation of ₹1,17,410. However, the Employees Compensation Commissioner awarded ₹2,62,216 along with 12% interest from the date of the accident.
Aggrieved by this, FCI approached the High Court challenging the award.
Justice S. Manu examined two key legal issues raised by the appellant.
First, on whether compensation could exceed the claimed amount, the court rejected FCI’s argument. Referring to earlier precedent, the bench observed that authorities have a duty to award fair compensation regardless of the claim amount.
“The Commissioner has the authority and duty to award just compensation even if it is higher than what is claimed,” the court noted.
Second, FCI argued that the claim was invalid due to lack of formal notice under Section 10 of the Employees Compensation Act, 1923.
The court, however, clarified that strict compliance with notice requirements is not always necessary. It highlighted that if the employer already had knowledge of the accident, the absence of formal notice would not defeat the claim.
“The purpose of notice is to inform the employer of the accident. Once knowledge is established, failure to issue notice is not fatal,” the bench explained.
After considering both issues, the High Court found no error in the Commissioner’s order.
The court held that the enhanced compensation was valid and that the claim was maintainable despite the absence of formal notice.
Accordingly, the appeal filed by the Food Corporation of India was dismissed.
Case Details
Case Title: The Regional Manager, Food Corporation of India v. Mohandas
Case Number: MFA (ECC) No. 29 of 2023
Judge: Justice S. Manu
Decision Date: 31 March 2026
