Right Of Employee To Seek Treatment From Hospital Of His Choice Cannot Be Curtailed By Circulars Issued By Employer: Kerala HC

The respondent, an employee with the Food Corporation of India (FCI), suffered injuries during work, incurring medical expenses totaling ₹35,001. However, he sought treatment from hospitals not included in the FCI's circular, prompting the institution to challenge the reimbursement of his medical bills.

The Employee's Compensation Commissioner later ordered the FCI to compensate the respondent with ₹50,000 along with 12 percent interest, including the medical expenses. Dissatisfied, the FCI appealed, arguing against the reimbursement of medical expenses and contesting the Commissioner's assessment of the respondent's monthly income.

A Bench of Justice G Girish emphasized that employees cannot be compelled to seek treatment exclusively from hospitals listed in institution-prepared panels. The Court added, “When viewed upon a humanitarian angle also, there is absolutely no rationale or justification in saying that when an employee suffers injury in an accident during the course of employment, he has to prefer the hospital coming under the panel prepared by the respondent instead of seeking treatment from the hospital from where he could get the best medical care. The right of the employee to seek treatment from the hospital of his choice cannot be curtailed by the circulars issued by the officers of the appellant. Therefore, the challenge in this M.F.A against the award of compensation amounting to Rs.35,001/- under the head ‘treatment expenses’, is devoid of merit.”

Advocate Vivek Varghese appeared for the Appellant and Advocate MR Jayalatha appeared for the Respondent.

The High Court affirmed the employee's right to choose the hospital providing the best medical care, regardless of institutional directives. It reiterated, “no circular issued by the employer could override the mandate of Section 4(2A) of the Employees' Compensation Act, 1923, as per which the employee shall be reimbursed the actual medical expenditure incurred by him for treatment of injuries caused during the course of employment.”

Moreover, the Court emphasized the welfare nature of the Employees' Compensation Act and said, “Being a social welfare legislation, the purpose of the above enactment cannot be permitted to be defeated by the circulars or internal orders passed by the officers of the appellant-Corporation.”

Regarding the assessment of compensation, the Court deemed the Commissioner's order inaccurate, as evidence indicated the respondent's actual monthly income exceeded the FCI's claim.

Consequently, the Court dismissed the FCI's appeal, mandating the payment of ₹1,00,000 in compensation along with 12% annual interest for the medical expenses.

Cause Title: The Area Manager Food Corporation of India v. P T Rajeevan, [2024:KER:31940]

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