THE HON'BLE SRI JUSTICE CHALLA KODANDA RAM
CIVIL MISCELLANEOUS APPEAL No. 244 of 2014
JUDGMENT:
This Civil Miscellaneous Appeal is filed by the Insurance Company against order dated 31.08.2012 passed by the Commissioner for Employees' Compensation and Assistant Commissioner of Labour-IV, Hyderabad, in W.C.No.42 of 2008 awarding compensation of Rs.2,00,524/- along with interest to respondent No.1.
There is no dispute that respondent No.3 had an insurance policy with the appellant company covering the workmen. Likewise, respondent No.2, lorry owner, had a policy with the appellant company covering lorry bearing No.AP10 T 1182.
A perusal of the order under appeal discloses that respondent No.1, labourer, was travelling in the subject lorry for unloading the cement bags; that the lorry met with an accident, due to which, he sustained grievous injuries, more particularly, he sustained fracture of middle 1/3rd of left femur and was operated with intra macular rod fixation; that A.W.2, Medical Practitioner, issued Ex.A.4, wound certificate, certifying that respondent No.1 was suffering with restriction of movements in his left leg and there is limping and shortening of left lower limb by one inch and that though the employer and employee relationship was denied, CKR, J 2 C.M.A.No.244 of 2014 respondent Nos.2 and 3 appeared before the Commissioner and deposed evidence that respondent No.1 was the employee of respondent No.2. In view of the same, this Court has no hesitation that there was employer and employee relationship established.
So far as the amount of compensation is concerned, A.W.2, the Medical Practitioner, assessed the disability at 25%, which is permanent and partial in nature, and opined that respondent No.1 cannot sit with crossed legs, walk for longer distance and do labour work and that the injury sustained by him is grievous in nature. By taking into consideration the same, loss of earning capacity was assessed at 60% by the Commissioner. Applying the minimum wages as notified in G.O.Ms.No.30 dated 27.07.2000, the compensation was fixed at 2,00,524/-. This Court does not find any infirmity in the order under appeal. In view of the same, this Civil Miscellaneous Appeal is liable to be dismissed.
However, the Commissioner erred in granting interest @12% per annum from the date of accident till the date of deposit. In this connection, it is to be noted that the Hon'ble Supreme Court in Oriental Insurance Company Limited v. Siby George1, while referring to the judgments in Pratap Narain Singh 1 (2012) 12 SCC 540 CKR, J 3 C.M.A.No.244 of 2014 Deo v. Srinivas Sabata2 and Kerala State Electricity Board v. Valsala3, held that the interest is payable from the date of the accident. Further, this Court in its order dated 04.12.2015 in CMA.No.871 of 2015 held that the appellant/claimant is entitled to interest @12% per annum from the date of accident till the date of realization. However, the liability to pay interest arises only after one month from the date of the accident in view of Section 4-A(3)(a) of the Workmen's Compensation Act, 1923.
In those circumstances, this Civil Miscellaneous Appeal is allowed in part modifying the order under appeal to the effect that the appellant shall pay interest @12% per annum on the amount of compensation after one month from the date of the accident till the date of realization.
Miscellaneous applications, if any pending, shall stand closed. There shall be no order as to costs.
_________________________ CHALLA KODANDA RAM, J 22nd MARCH, 2021.
kvni 2 (1976) 1 SCC 289 3 AIR 1999 SC 3502