The Kozhikode Industrial Tribunal and Employees’ Compensation Commissioner had directed Food Corporation of India (FCI) to reimburse the medical expenses of an employee, PT Rajeevan, whose request for reimbursement had been refused because he had failed to seek treatment from a hospital empanelled by FCI. However, FCI had filed an appeal against the order following which Justice G Girish, upheld the order of the Kozhikode Industrial Tribunal and Employees’ Compensation Commissioner.
The Court was of the opinion that it was only humanitarian to allow an employee to seek treatment from the best hospital in case they meet with an accident or suffer an injury while in service. There is no reason for Rajeevan, the FCI employee who was injured in an accident to be denied reimbursement just because he went to a hospital not in the list of empanelled hospitals issued by his employer. Employees, said the Court, cannot be forced to approach only the hospital(s) empanelled by the employer. Therefore, the Court asked FCI to reimburse the said employee’s medical expenses.
The appeal filed by FCI was dismissed saying that no circular from an employer can supersede what is stated in section 4(2A) of the Employees’ Compensation Act, 1923, according to which employees are to be reimbursed the actual medical expenses they incur for treatment of injuries caused sustained while in service. As per the Court, the Act was meant for the welfare of employees, and therefore, its very meaning and purpose cannot be ignored or overruled by the any internal circular or order. Rajeevan was given a compensation of Rs 1 lakh instead of Rs 50,000.