Citation : 2025 Latest Caselaw 253 Kant
Judgement Date : 2 June, 2025
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NC: 2025:KHC-K:2789
MFA No. 201672 of 2019
HC-KAR
IN THE HIGH COURT OF KARNATAKA,
KALABURAGI BENCH
DATED THIS THE 2ND DAY OF JUNE, 2025
BEFORE
THE HON'BLE MR. JUSTICE RAVI V HOSMANI
MISCL. FIRST APPEAL NO. 201672 OF 2019 (WC)
BETWEEN:
JAHIR S/O AHMAD @ JAVID PATHAN
AGE: 32 YEARS,
OCC: DRIVER/NOW NIL,
R/O: NEAR CHANDA BAWADI,
VIJAYAPUR - 586 101.
...APPELLANT
(BY SRI BASAVARAJ R.MATH, ADVOCATE)
AND:
1. ABDUL KUDUS
S/O USMANSAHEB BULULKHAN,
AGE: MAJOR,
Digitally signed OCC: OWNER OF MARUTI ERTIGA CAR
by RAMESH
MATHAPATI VEHICLE ITS BEARING
Location: HIGH REG.NO.MH.45/BN-7863,
COURT OF
KARNATAKA R/O: HOTAGI STATION,
TQ: SOUTH SOLAPUR,
DIST: SOLAPUR - 413 215.
2. THE BRANCH MANAGER
THE NEW INDIA ASSURANCE CO. LTD.,
GURUKUL ROAD,
VIJAYAPUR - 586 101.
...RESPONDENTS
(BY SRI SANJAY M. JOSHI, ADVOCATE FOR R2;
NOTICE TO R1 IS DISPENSED WITH)
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NC: 2025:KHC-K:2789
MFA No. 201672 of 2019
HC-KAR
THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER
SECTION 30(1) OF WORKMAN COMPENSATION ACT, PAYING
TO CALL FOR RECORDS AND MODIFY THE IMPUGNED
JUDGMENT AND AWARD DATED 17.11.2018 PASSED BY THE II
ADDITIONAL SENIOR CIVIL JUDGE AND COMMISSIONER FOR
EMPLOYEES COMPENSATION, VIJAYAPURA IN
E.C.A.NO.151/2016, IN THE INTEREST OF JUSTICE AND
EQUITY.
THIS MISCELLANEOUS FIRST APPEAL COMING ON FOR
ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN
AS UNDER:
CORAM: HON'BLE MR. JUSTICE RAVI V HOSMANI
ORAL JUDGMENT
Challenging judgment and award dated 17.11.2018
passed by II Addl. Senior Civil Judge and Commissioner for
Employees' Compensation, Vijayapura (for short, 'Tribunal') in
ECA No.151/2016, this appeal is filed.
2. Sri Basavaraj R.Math, learned counsel for
appellant/claimant would submit that while working as driver
on monthly wages of Rs.15,000/- and daily bhata of Rs.100/- in
vehicle bearing registration No.MH-13/BN-7863 owned by his
employer-respondent no.1, vehicle met with accident at about
8.30 p.m., near Chikala Cross of Jamboti-Chorala road. In said
accident, claimant sustained injuries to his stomach, leg, etc
and was shifted to Belgaum Institute of Medical Science,
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HC-KAR
Belagum, for treatment. He was later shifted to Civil Hospital,
Solapur and to Yeshodhara Hospital, Solapur, wherein he
underwent operations spending Rs.2,50,000/- towards medical
treatment. Alleging that injuries had led to claimant sustaining
permanent physical disability and loss of earning capacity, he
filed application under Section 22 of Employees' Compensation
Act, 1923, against owner/employer and insurer.
3. On service of notice, respondents appeared and
filed separate objections. Owner admitted occurrence of
accident and vehicle being insured with respondent no.2. But
denied income as claimed by claimant. Insurer opposed petition
denying age, occupation and monthly income as well as
suffering of permanent physical disability. Based on pleadings,
following issues were framed;
ISSUES
1. Whether the petitioner proves that, he has sustained grievous injuries in employment with Respondent No.1 as a driver as being alleged?
2. Whether the petitioner proves that, he has sustained grievous injuries during the course and arising out of employment under the Respondent No.1 as an employee?
3. Whether the Respondent No.2 proves that, due to violation of policy conditions, they are not liable to pay the compensation?
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4. Whether the petitioner is entitled for compensation? If so, how much and from whom?
5. What order or award?
4. Claimant examined himself as PW.1 and doctor was
examined as PW.2. Exs.P1 to P13 were marked. Insurer did not
lead oral evidence and insurance policies were got marked with
consent as Exs.R1 and R2.
5. On consideration, Tribunal held relationship of
claimant with respondent as employee-employer established,
accident had occurred during course and arising out of
employment and claimant was entitled for compensation.
Taking monthly income of claimant at Rs.7,000/-, disability @
10% & applying factor of 211.79 corresponding to claimant
aged of 28 years, awarded Rs.88,951/- towards loss of future
earning capacity. It also awarded medical expenses to tune of
Rs.1,29,618/- corresponding to value for which medical bills
were produced. Thus, total compensation of Rs.2,18,600/- was
awarded with interest @ 12% p.a. from 30 days after date of
accident.
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6. It was submitted while passing impugned judgment
and award, Tribunal erred in taking monthly income of claimant
at Rs.7,000/- only. It was further submitted, award of interest
from one month after date of accident was also contrary to law.
Even assessment of loss of earning capacity at only 10% was
contrary to material on record and therefore substantial
question of law would arise for consideration.
7. On other hand, Sri Sanjay M.Joshi, learned counsel
for respondent no.2 sought to support award and oppose
appeal.
8. Heard learned counsel and perused impugned
judgment and award.
9. Appeal was admitted to consider following
substantial question of law:
"Whether assessment of compensation by Tribunal is contrary to law especially Notification issued under Section 4 of E.C.Act and Ex.P13?"
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10. And with consent of learned counsel for parties, it is
taken up for final disposal.
11. This appeal is by claimant seeking for enhancement
of compensation. Relationship of employee, employer and
insurer between appellant, respondents no.1 and 2 are not in
dispute. Occurrence of accident on 13.06.2015 involving
insured vehicle, claimant sustaining injuries leading to
permanent physical disability and consequent loss of earning
capacity as well as liability of insurer to pay compensation are
not in dispute. Grievance of claimant is about assessment being
contrary to law and material on record.
12. Insofar as monthly income, claimant had asserted it
to be Rs.15,000/- per month and Rs.100/- per day as bhata but
denied by employer. Admittedly, accident occurred on
13.06.2015, which is after issuance of notification by Union
Ministry of Labour and Employment in S.O.1258 (E) on
31.05.2010, stipulating `8,000/- as monthly wages under
Section 4(1B) of E.C. Act, for purposes of Section 4(1) thereof.
Therefore, Commissioner/Tribunal would not be justified in
taking monthly income at `6,000/-. This Court has in
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HC-KAR
innumerable matters held same to be mandatory. Therefore,
assessment would be contrary to provisions of E.C. Act.
13. Likewise, in view of ratio laid down by Hon'ble
Supreme Court in case of Shobha and others v. The
Chairman, Vithalrao Shinde Sahakari Sakhar Karkhana
Limited and others1 interest under Employees Compensation
Act would be payable at 12% per annum from date of incident.
Therefore, award of interest from one month after date of
incident would also be contrary to law.
14. Insofar as contention about assessment of
compensation towards loss of earning capacity being contrary
to material on record, it is seen claimant alleged that he
sustained blunt injury to his abdomen resulting in intestinal
injury and for which he underwent laparoctomy. Due to same,
he claimed to be suffering from 15% permanent physical
disability. To substantiate same, he relied on treatment
records, medical bills, prescription, scan reports, etc., issued by
Yeshodhara Hospital, Solapur as Exs.P8 to P12. However, same
were got marked noting objections about proof of contents.
2022 SCC OnLine SC 308
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Admittedly, claimant did not examine any official from
Yeshodhara Hospital, Solapur, to prove contents. PW.2-
Dr.S.S.Bedar, examined by claimant did not treat claimant. In
cross-examination (certified copy of which was made available
by learned counsel for claimant for perusal by this Court), he
admitted Ex.P13, disability certificate was issued two years
after date of accident by referring to treatment records issued
by Yeshodhara Hospital and without any fresh clinical or other
examination/test. He also admitted that injury to abdomen had
healed. Suggestions about assessment being excessive are
denied.
15. While passing impugned award, Tribunal assessed
loss of earning capacity at 10% as against 15% by PW.2. When
assessment of permanent physical disability by Tribunal is on
due consideration of documentary and oral evidence and by
assigning reasons, same would not be open for challenge on
ground of perversity. Moderation of assessment by Tribunal
was taking note of admissions by PW.2. Therefore, assessment
of permanent physical disability would not call for interference.
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16. Thus, re-computation of compensation towards loss
of earning capacity would be as follows:
Rs.8000/- X 60% X 211.79 X 10% = Rs.1,01,659.2/-.
17. Award of Rs.1,29,618/- under other heads is
undisturbed. Thus, total re-assessed award would be
Rs.2,31,277.2/- along with interest @ 12% per annum from
date of accident. Substantial question of law is answered partly
in affirmative. Consequently, following :
ORDER
(a) Appeal is allowed in part.
(b) Claimant is entitled to 2,31,277.2/- along with interest @ 12% per annum from date of accident i.e., 13.06.2015 till deposit of amount.
(c) Respondent-insurer is directed to deposit enhanced compensation within six weeks from date of receipt of certified copy of this judgment.
(d) Rest of order passed by Tribunal remains unaltered.
Sd/-
(RAVI V HOSMANI) JUDGE
MSR
Ct;Vk
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