Sections 96 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 96 to 99 close Chapter VII on employee's compensation. They say who may appear for a party before the competent authority, how witness evidence is recorded, when the authority may refer a question of law to the High Court, and which orders can be appealed to the High Court.
A party may act before the competent authority through a legal practitioner, an insurance company or registered trade union official, an Inspector-cum-Facilitator or another authorised person (s.96). Witness evidence is recorded as a brief memorandum that forms part of the record (s.97). The authority may refer a question of law to the High Court (s.98). An appeal lies to the High Court against the orders listed in s.99(1) within sixty days, but only if a substantial question of law is involved.
Why it matters
A compensation order can carry a large lump sum. The time limit for challenging it is short and the conditions are strict, especially for an employer, who must deposit the amount first. If you are weighing an appeal or defending one, our legal dispute resolution team can help you check eligibility before the limitation period runs. This article follows sections 93 to 95 on applications and the authority's powers.
Section 96: who may appear
Any appearance, application or act that a person must make before or to a competent authority may be made on that person's behalf by:
- a legal practitioner;
- an official of an insurance company;
- an official of a registered trade union;
- an Inspector-cum-Facilitator appointed under s.122(1);
- any other officer the State Government specifies; or
- with the authority's permission, any other person,
in each case authorised in writing by the person. The one exception is an appearance that is needed so the party can be examined as a witness: that must be personal.
Section 97: recording evidence
The competent authority makes a brief memorandum of the substance of each witness's evidence as the examination proceeds. It is authenticated under the authority's hand, or in the manner the State Government prescribes, and forms part of the record. Two provisos apply:
- If the authority is prevented from making the memorandum, he records the reason and has it written from his dictation and signed.
- The evidence of a medical witness is taken down as nearly as may be word for word.
The medical-witness rule matters because disablement percentages and cause of death are often decided on medical evidence.
Section 98: question of law to the High Court
The competent authority may, if he thinks fit, submit any question of law for the High Court's decision. If he does, he must decide the question in conformity with the High Court's decision. The Code gives the parties no right to demand a reference; it is the authority's option.
Section 99: appeal against orders of the competent authority
Appealable orders
| Clause | Order |
|---|---|
| (a) | Awarding a lump sum as compensation (by redemption of a half-monthly payment or otherwise), or disallowing a claim for a lump sum in full or part |
| (b) | Awarding interest or damages under section 77 |
| (c) | Refusing to allow redemption of a half-monthly payment |
| (d) | Providing for distribution of compensation among dependants, or disallowing a person's claim to be a dependant |
| (e) | Allowing or disallowing a claim for indemnity under section 85(2) |
| (f) | Refusing to register a memorandum of agreement, registering it, or registering it subject to conditions |
Conditions and limits
- Substantial question of law: no appeal lies unless one is involved.
- Amount: except for an order refusing redemption (clause (c)), the amount in dispute must be not less than ten thousand rupees, or such higher amount as the Central Government notifies.
- Agreed outcomes: no appeal lies where the parties agreed to abide by the authority's decision, or where the order gives effect to their agreement.
- Employer's deposit: an employer's appeal under clause (a) needs a certificate from the competent authority that the appellant has deposited the amount payable under the order.
- Limitation: sixty days from the date of passing of the order (s.99(2)). Section 5 of the Limitation Act, 1963 applies (s.99(3)), so delay can be condoned on sufficient cause, but it is unwise to plan on that.
For the deposit mechanics and the lump-sum and distribution orders, see sections 79 to 81. For interest and damages under section 77, see sections 77 and 78.
A worked example
An employer is ordered to pay a lump sum to a worker's dependants and to pay damages under section 77. It believes the authority misread the law on the worker's status as an employee. The order is dated 4 March. The employer first deposits the amount payable, collects the authority's certificate, and files its appeal with the certificate before the sixty days end. The High Court admits the appeal only if a substantial question of law arises. Had the amount in dispute been below the threshold, no appeal would lie. (Illustrative.)
Need help with an appeal or a compensation order?
Check the list of appealable orders, the amount threshold and the deposit certificate before you file. Our legal dispute resolution team can review the order and the record with you and prepare the appeal or the response.
Key takeaways
- Parties may appear through a lawyer, insurer or union official, Inspector-cum-Facilitator or authorised person, but witness examination is personal.
- Evidence is kept as a memorandum; medical evidence is noted nearly word for word.
- The authority may refer a question of law to the High Court and must follow the answer.
- Appeals lie only against the orders in s.99(1), on a substantial question of law, usually for not less than ₹10,000.
- Sixty days to appeal; an employer needs the deposit certificate for a clause (a) appeal.
Read next
- Sections 93 to 95: Form of application, deposits and powers of competent authority
- Sections 79 to 81: Review, commutation and distribution of compensation
- Sections 100 to 102: Cess, interest and power to exempt
- EPF Tribunal: EPFAT appeal process
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.