The Oriental Insurance Comp. ... vs Savara Kishan, Hyd 2 Othrs
2021 Latest Caselaw 904 Tel

  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

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

(2012) 12 SCC 540 CKR, J

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.

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(1976) 1 SCC 289

AIR 1999 SC 3502