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Section 91: Power of Competent Authority to require further deposit

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter VII: Employee's Compensation
Competent Labour Forum
Act No. 36 of 2020
Section 90 All 163 Sections of Code on Social Security, 2020 Section 92

Legal Commentary & Landmark Judgments: Section 91

Section 91 of the Code on Social Security, 2020 vests the Competent Authority with coercive statutory authority to demand further deposits from employers in cases of fatal accidents or catastrophic permanent total disablement where the initial deposit is prima facie inadequate under statutory wage and factor tables.

  • Suo Motu and Inquisitorial Re-assessment Power: Where an employer has deposited a sum of money as compensation for a fatal accident or total disability, and the Competent Authority considers that the deposited amount is insufficient under Section 76, Section 91 authorizes the authority to issue a show-cause notice demanding a further deposit.
  • Statutory Notice and Opportunity of Hearing: Mandates that the Competent Authority must serve a written notice upon the employer setting out the specific arithmetic deficit and reasons for deeming the initial deposit inadequate, affording a mandatory statutory window (ordinarily 30 days) to submit written objections and evidence regarding wages or disablement percentage.
  • Summary Determination and Formal Demand Order: If the employer fails to satisfy the authority that the deposited sum is sufficient, the Competent Authority issues a formal binding order requiring the employer to deposit the differential deficiency within the time stipulated in the demand.
  • Enforcement through Land Revenue Certificate Recovery: Failure by the employer to comply with the further deposit order triggers immediate certification under Section 99, transforming the unpaid deficit into a debt recoverable as an arrear of land revenue through executive warrant.
Key Landmark Precedents:
  • Pratap Narain Singh Deo v. Srinivas Sabata (1976) 1 SCC 289: The Supreme Court held that an employer has no authority to withhold or tender an inadequate portion of statutory compensation; the liability is statutory and absolute, and default attracts interest and penal sanctions.
  • Oriental Insurance Co. Ltd. v. Siby George (2012) 12 SCC 540: A two-judge bench of the Supreme Court reaffirmed that compensation falls due immediately upon the accident and any delayed deposit or shortfall incurs mandatory statutory interest from the date of the casualty.
  • Saberabibi Hasan Khan v. Chandrakant Maganbhai Patel (2010) 4 SCC 530: The Supreme Court ruled that where statutory minimum wage floors or multiplying factors are revised, the Competent Authority must ensure that dependents receive full statutory amounts without deductions based on informal employer assertions.
Courtroom Practice & Strategic Litigation Guidance:

Employers and insurance companies depositing compensation in fatal accident cases must perform accurate actuarial calculations based on 50% of the deceased's monthly wages multiplied by the relevant factor from Schedule IV, subject to statutory minimum wage caps. Never deposit a rounded or tentative sum; always file a detailed calculation sheet alongside proof of age and medical opinion. If served with a Section 91 notice, counsel must appear on the first date with certified wage sheets and age verification (such as school certificates or Aadhaar records) to demonstrate statutory calculation fidelity.

Section 90 All 163 Sections of Code on Social Security, 2020 Section 92