New Delhi, March 5 -- The Supreme Court has fastened the liability to pay penalty on an employer for a delay in depositing the compensation amount under the Employees' Compensation Act, 1923, saying the law is a "social welfare statute" for redressing employees' grievances.
A bench of Justices Aravind Kumar and P B Varale said in a catena of judgments, the apex court has stressed the "liberal and purposive interpretation" of the Act in favour of the employees being a social-welfare legislation.
The bench delivered its verdict on an appeal filed by an insurance firm, challenging a May 2025 order of the Delhi High Court.
The high court had fastened the liability of paying the penalty imposed under section 4A(3)(b) of the Act on the insuran...