Ex Gratia Compensation for Covid-19 Deaths: Supreme Court Mandates Guidelines

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EX GRATIA COMPENSATION FOR COVID-19 DEATHS: SUPREME COURT MANDATES GUIDELINES

Introduction

In a significant ruling, the Supreme Court of India has directed the National Disaster Management Authority (NDMA) to formulate guidelines for providing ex gratia compensation to the families of individuals who succumbed to Covid-19. This decision underscores the statutory obligations of the government under the Disaster Management Act, 2005 (DMA 2005) and highlights the importance of ensuring that victims' families receive the necessary support during these challenging times.

Case Background

The case arose from two writ petitions filed in public interest, seeking directions to the Central and State Governments to provide ex gratia monetary compensation of Rs. 4 lakhs to the families of those who died due to the Covid-19 pandemic. The petitioners argued that Covid-19 is a 'Notified Disaster' under the DMA 2005, and thus, the provisions of the Act should apply, mandating compensation for the deceased's families.

The petitioners also sought directions for the issuance of official documents stating the cause of death for Covid-19 victims and for the government to fulfill its obligations to care for the victims and their families. The Union of India, represented by the Solicitor General, contended that the government had already taken various measures to address the pandemic and that the issue was not one of fiscal constraints but rather of prioritizing resources.

What The Lower Authorities Held

The lower authorities had not provided a uniform policy for ex gratia compensation for Covid-19 deaths, leading to disparities among states. Some states had begun offering compensation, while others had not, creating confusion and inequity. The petitioners argued that the lack of a clear guideline violated the rights of the victims' families and contravened the provisions of the DMA 2005.

The Court's Reasoning

The Supreme Court, in its judgment, emphasized the mandatory nature of the provisions under Section 12 of the DMA 2005. The Court noted that the term 'shall' is used twice in the section, indicating a clear legislative intent to impose a duty on the NDMA to recommend guidelines for minimum standards of relief, including ex gratia assistance for loss of life.

The Court rejected the argument presented by the Union of India that the word 'shall' could be interpreted as 'may,' thereby rendering the provision discretionary. The Court held that such an interpretation would defeat the very purpose of the DMA 2005, which aims to provide immediate relief to victims of disasters.

The Court also highlighted that the Covid-19 pandemic, having been declared a 'Notified Disaster,' falls squarely within the ambit of the DMA 2005. Therefore, the provisions of Section 12 must be applied to ensure that families of Covid-19 victims receive the compensation they are entitled to.

Statutory Interpretation

The Court's interpretation of Section 12 of the DMA 2005 is pivotal. The Act was enacted to provide a framework for disaster management in India, ensuring that victims receive timely and adequate relief. The Court's ruling reinforces the notion that the government has a statutory and constitutional obligation to provide assistance to those affected by disasters, including pandemics like Covid-19.

The Court also referenced previous judgments to support its interpretation, emphasizing that when the language of a statute is clear and unambiguous, it must be given its literal meaning. The Court's reliance on established legal principles regarding statutory interpretation underscores the importance of adhering to the legislative intent behind the DMA 2005.

Why This Judgment Matters

This ruling is significant for several reasons. Firstly, it clarifies the obligations of the government under the DMA 2005, particularly in the context of ongoing disasters like the Covid-19 pandemic. By mandating the formulation of guidelines for ex gratia compensation, the Court has ensured that victims' families receive the support they need during a time of immense loss and hardship.

Secondly, the judgment reinforces the principle that fiscal constraints cannot be used as a justification for failing to fulfill statutory obligations. The Court's stance emphasizes that the government must prioritize the welfare of its citizens, especially in times of crisis.

Finally, the ruling sets a precedent for future disaster management policies, ensuring that the rights of victims and their families are protected. It highlights the need for a uniform approach to compensation across states, preventing disparities and ensuring that all families affected by disasters receive equitable treatment.

Final Outcome

The Supreme Court directed the NDMA to recommend guidelines for ex gratia assistance for families of Covid-19 victims within six weeks. The Court also mandated the issuance of simplified guidelines for death certificates, ensuring that the cause of death is accurately recorded as Covid-19. Additionally, the Court urged the Union Government to consider the recommendations made by the XVth Finance Commission regarding social security measures for disaster-related deaths.

Case Details

• Case Title: Reepak Kansal vs Union of India
• Citation: 2021 INSC 318
• Court: IN THE SUPREME COURT OF INDIA
• Bench: ASHOK BHUSHAN, J. & M.R. SHAH, J.
• Date of Judgment: 2021-06-30