Citation : 2024 Latest Caselaw 2574 Tel
Judgement Date : 9 July, 2024
THE HONOURABLE DR.JUSTICE G.RADHA RANI
CIVIL MISCELLANEOUS APPEAL No.652 of 2013
JUDGMENT:
This Civil Miscellaneous Appeal is filed by the appellant - opposite party
No.2 (for short ''O.P.2'') aggrieved by the order dated 05.12.2012 passed in
W.C.No.1 of 2012 by the Commissioner for Workmen's / Employees
Compensation and Deputy Commissioner of Labor-II, T.Anjaiah Karmika
Samkshema Bhavan, RTC 'X' Roads, Hyderabad.
2. The respondent No.1 is the injured applicant. He filed the application
claiming compensation for the personal injuries sustained by him in an accident
on 27.09.2010, during and in the course of employment with respondent No.2 -
opposite party No.1 (for short ''O.P.1''), the owner of the lorry bearing No.AP-
16-W-9783.
3. The case of the applicant was that he was working as a driver on the lorry
bearing No.AP-16-W-9783 under the employment of O.P.1. On 26.09.2010 as
per the instructions of O.P.1, while he was proceeding on the said lorry as driver
from Hyderabad to Vizianagaram and on 27.09.2010 at about 08:45 PM, when
he reached Annavaram Satyanarayana Swamy Temple, a tractor bearing No.
AP-31-U-6652 came with high speed and dashed the lorry of the applicant in
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the opposite direction, due to which, the applicant sustained fracture shaft of
right tibia, head injury and blunt injuries all over the body. Immediately, he
was shifted to Government Hospital, Tuni and thereafter took treatment at
Kamala Hospital, Hyderabad and at Sai Speciality Clinic, West Maredpally,
Secunderabad. The applicant stated that he was aged 25 years by the date of the
accident and was paid wages @ Rs.8,000/- per month and batta @ Rs.100/- per
day. His employer visited the accident spot and paid some amount towards his
treatment. The lorry was insured with O.P.2, therefore claimed compensation
of Rs.8,25,000/- jointly and severally from O.Ps.1 and 2 along with interest @
18 % per annum and costs.
4. The O.P.1 - owner of the vehicle filed his counter admitting his
ownership of the lorry bearing No.AP-16-W-9783, the employment of the
applicant as a driver under him, the occurrence of the accident and the injuries
sustained by the applicant on 27.09.2010. He also admitted the wages paid to
the applicant as Rs.8,000/- per month and daily batta of Rs.100/- and admitted
registration of a case in Crime No.99 of 2010 and that he visited the place of
accident and paid some amount towards medical expenses. He also stated that
the lorry was validly insured with O.P.2 for the period from 21.11.2009 to
20.11.2010 covering the date of accident on 27.09.2010 and if any
compensation was awarded by the Commissioner, the same should be awarded
against O.P.2.
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5. The O.P.2 - Insurance Company filed counter. He called for strict proof
of the averments stated by the applicant in his application and that the applicant
was holding a valid and subsisting driving license and further contended that the
amount of compensation claimed was excessive and exorbitant.
6. During the course of enquiry before the Commissioner, the applicant
examined himself as AW.1 and got examined the Orthopedic Surgeon, who
issued the disability certificate as AW.2 and got marked Exs.A1 to A10 on his
behalf. No oral evidence was adduced by O.Ps.1 and 2. The O.P.2 got marked
the copy of the insurance policy as Ex.B1with consent.
7. On considering the oral and documentary evidence on record, the learned
Commissioner for Employees Compensation and Deputy Commissioner of
Labor-II, Hyderabad held that the applicant was working as a driver on the lorry
bearing No.AP-16-W-9783, met with an accident on 27.09.2010, sustained
injuries during the course of and out of his employment with O.P.1. The
learned Commissioner on considering the evidence of AWs.1 and 2, assessed
the loss of earning capacity of the applicant as 80% and that the O.Ps.1 and 2
were jointly and severally liable to pay compensation to the applicant and
considering the Minimum Rates of Wages fixed by the Government in
Employment of Public Motor Transport, assessed the compensation as
Rs.5,96,607/- and together with stamp fee and advocate fee directed to deposit
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an amount of Rs.5,98,301/- with interest @ 12 % per annum from the date of
accident till the date of deposit.
8. Aggrieved by the said award passed by the learned Commissioner, the
O.P.2 - Insurance Company preferred this appeal raising the following
substantial questions of law:
a) Whether the learned Commissioner properly appreciated that prima facie onus rest on the claimant to plead and establish the master and servant relationship, whereas in the instant lis, the claimant not substantiated the same with cogent documentary proofs. Inspite of that, passing an award in favor of the claimants is legally sustainable or not?
b) Whether the learned Commissioner was right in allowing the claim in the absence of finding in terms of Section 2(n)(i)(c) of the Workmen's Compensation Act (for short '' the Act'') or not? i.e. whether the owner of the vehicle recruited the claimant as a driver more particularly in the absence of pleadings in claim petition in respect of which period and by whom claimant was appointed as a workman? (Evidently no documentary proofs filed by the claimant about his employment particulars and receiving of salary, etc.,)
c) Whether the learned Commissioner properly perceived the categorical assertion of the appellant - Insurance Company that the driver of the crime vehicle was not holding valid driving license to drive the vehicle. Does not it amount to violation of conditions of policy i.e. Ex.B1 or not?
d) Whether the learned Commissioner erred in not giving a finding relating to the case of the appellant that, insured vehicle was not possessing requisite
Dr.GRR, J cma_652_2013
fitness certificate and other pre-requisites. In the absence of such a vital aspects, the award passed by the Commissioner is sustainable or not?
e) Whether the learned Commissioner was right in relying on AW.2 - doctor's evidence, wherein he assessed the disability as 25% permanent and loss of earning capacity as 80% by seeing the claimant only without taking into consideration any authentic medical evidence. The said approach of the Commissioner was in consonance with the well settled legal principles or not?
f) Whether the learned Commissioner was right in relying on Ex.A6, disability certificate, as the same would suffer from infirmities and also without referring the claimant to an Authentic Medical Board, which was an authorized body to issue disability certificate. In the absence of said authentic disability certificate arriving findings basing on surmises and conjunctures was legally sustainable or not?
g) Whether the Commissioner was right in awarding interest @ 12 % in favor of the claimant from the date of filing of the claim petition till the deposit of compensation, is it legally sustainable or not?
9. Heard Sri Harinath Reddy Soma, learned counsel for the appellant -
Insurance Company and Sri K.Hari Mohan Reddy, learned counsel for the
respondent No.1 - applicant.
10. Though so many questions were raised by the learned counsel for the
appellant challenging the appeal contending that all would amount to substantial
questions of law, he mainly argued upon the question of the doctor assessing the
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disability as 25%, however, stated about the loss of earning capacity as 80% and
the Commissioner approving the same.
11. Learned counsel for the respondent No.1 - claimant contended that the
Commissioner considered all these aspects while passing the award. No
substantial questions of law would arise and relied upon the Division Bench
judgment of the High Court of Andhra Pradesh in Charan Singh v. G.Vittal
Reddy and Another1 on the aspect that any qualified doctor can assess the loss
of disability vis-a-vis earning capacity and it was not necessary that he should
be the same doctor, who treated the injured.
12. The Hon'ble Apex Court in National Insuance Company Limited v.
Mastan and Another 2 , while considering the differences between Section 30
of the Workmen's Compensation Act, 1923 and under Section 173 of the Motor
Vehicles Act, 1988 observed that:
"Right of appeal is a creature of statute. The scope and ambit of an appeal in terms of Section 30 of the 1923 Act and Section 173 of the 1988 Act are distinct and different. They arise under different situations. In a case falling under the 1923 Act, negligence on the part of the owner may not be required to be proved. Therein what is required to be proved is that the workman suffered injuries or died in course of
2003 (4) ALD 183 (DB)
2006 (2) SCC 641
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employment. The amount of compensation would be determined having regard to the nature of injuries suffered by the worker and other factors as specified in the Act. The findings of fact arrived at by the Commissioner for Workmen's Compensation are final and binding. Subject to the limitations contained in Section 30 of the 1923 Act, an appeal would be maintainable before the High Court; but to put the insurer to further disadvantages would lead to an incongruous situation."
13. Thus, as clarified by the Hon'ble Apex Court, the findings of facts arrived
at by the Commissioner for Workmen's compensation are final and binding and
unless there is a substantial question of law involved in the matter, the appeal is
not maintainable. All the questions raised by the appellant - O.P.2 - Insurance
Company are all questions of fact. Considering the pleadings adduced by the
parties, wherein, O.P.1 i.e. the owner of the vehicle also admitted the
employment of the applicant as a driver on his lorry, the narration of the
accident, the injuries sustained by the applicant, the treatment given to him and
that O.P.1 also admitted visiting the place of accident and the evidence of AW.1
is corroborated with the documentary evidence filed by him marked under
Exs.A1, the certified copy of the FIR registered by the Police of PS Thondangi,
East Godavari District in Crime No.99 of 2010 dated 28.09.2010 basing on the
complaint lodged by the applicant himself and Ex.A2, the certified copy of
charge sheet filed by the police, the Commissioner observed that the applicant
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was working as a driver on the lorry bearing No.AP-16-W-9783 and while he
was carrying the load of liquor from Hyderabad to Vizianagaram and when
reached Annavaram Satyanarayana Swamy Temple, the driver of the tractor
bearing No.AP-31-U-6652 drove the tractor in a rash and negligent manner and
hit the lorry of the applicant in the opposite direction. Due to which, the
applicant sustained injuries on his right leg and he was shifted to Government
Hospital, Tuni for treatment. The Commissioner by considering Ex.A3, the
certified copy of the wound certificate issued by A.P. Vaidya Vidhana Parishad
and Ex.A4, medical certificate issued by Kamala Hospital, Hyderabad, which
would disclose that the applicant was admitted as in-patient in the said hospital
from 29.09.2010 to 02.10.2010 and he was operated on 30.09.2010 for fracture
shaft of right tibia and considering Ex.A5, the medical certificate issued by Sai
Speciality Clinic, West Marredpally, Secunderabad came to the conclusion that
the applicant had taken follow-up treatment at the said hospital. The
Commissioner also considered that the applicant was holding a driving license
under Ex.A8, for which he was authorized to drive Heavy Transport Vehicle
(for short ''HTV'') and MTL and that the driving license was valid up to
23.03.2011, held that the said documentary evidence would establish the
employment of the applicant as a driver on the lorry and the involvement of the
applicant in the accident, while he was driving the said lorry and that he was in
possession of a valid and effective driving license and took treatment in various
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hospitals for the injuries sustained by him. Thus, this Court does not find any
merit in the contention of the learned counsel for the appellant raised in the
grounds of appeal with regard to any substantial question of law arising with
regard to absence of pleadings and establishing about the employer and
employee relationship and that the applicant was not holding a valid driving
license to drive the vehicle.
14. On the aspect of assessing the disability of the applicant and his loss of
earning capacity also, there were clear findings given by the Commissioner.
Considering the evidence of AW.2, a competent Orthopedic Medical
Practitioner, who stated about the applicant approaching him for follow-up
treatment and after examining him clinically and radiologically and after going
through his old records, issued the disability certificate estimating the
permanent and partial disability as 25% and loss of earning capacity as 80% and
AW.2 stated that the applicant developed stiffness of right knee with range of
movements from 0 to 75 degrees and ankle movements and due to the above
problems he could not drive the vehicle. The learned Commissioner on
considering the medical certificate marked under Ex.A4, which revealed that a
surgical correction of long bone was done and that he was operated on
30.09.2010 and considering that the applicant was a driver on a heavy motor
vehicle and for discharging his duties as a driver, swift movements of both
upper and lower limbs were necessary and with the above disability certified by
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AW.2, a competent and qualified medical practitioner, it was not possible for
the applicant to carry out his duties as driver with the same efficiency as he was
capable of doing on the date of the accident, assessed the loss of earning
capacity of the applicant as 80%.
15. The Division Bench of the High Court of Andhra Pradesh in Charan
Singh v. G.Vittal Reddy and Another (cited supra) by considering the
provisions of the Workmen's Compensation Act under Section 4(i)(c) and the
object behind enacting Workmen's Compensation Act, held that:
''13. It is also pertinent to state that the Workmen's Compensation Act is a beneficial piece of legislation conceived in the interest of the workmen, who are the victims of accidents arising out of and in the course of employment and the Act provides for cheaper and quicker disposal relating to compensation through Special Tribunals. The procedure as contemplated under part-V of the Act and the Rules framed thereunder are summary in nature. The Commissioner while passing the Orders shall record concisely a judgment, giving findings on each issue and reasons for such finding. Under Schedule-I, a legal fiction is created by the Legislature wherein injuries referred to in the said Schedule are deemed to result in permanent disablement vis-a-vis the percentage of loss of earning capacity. Thus, the statute itself simplified the process of calculation
Dr.GRR, J cma_652_2013
of loss of earning capacity with reference to the scheduled injuries. While, in case of non- scheduled injuries resulting in permanent partial or total disablement, the assessment by qualified Medical Practitioner is necessary as required under Section 4(c)(ii) of the Act. The words "Qualified Medical Practitioner" is also defined under Section 2(1)(i) which means "any person registered under any Central Act, Provincial Act or any Act of the Legislature of a State providing for the maintenance of a register of medical practitioners, or, in any area where no such last mentioned Act is in force, any person declared by the State Government, by notification in the Official Gazette, to be a qualified medical practitioner for the purpose of this Act.
14. Thus, when the Section is very clear and specific regarding the assessment to be made by a qualified medical practitioner, there is no reason to import additional meaning so as to mean that the qualified medical practitioner should be one, who has treated the injured workman. A provision in a beneficial piece of legislation has to be interpreted in such a way as to assure the benefit and not to deny the benefit that is sought to be conferred by statute. Thus, if Section 4 is read with reference to Schedule-I, the inevitable conclusion is that in case of non-
scheduled injuries, the percentage of total disablement as is proportionate to the loss of earning capacity has to be assessed by the
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qualified medical practitioner and it is not necessary that the Doctor, who treated the workman should be the only assessing authority.
It is also not in dispute that the doctor, who was examined before the Commissioner fell within the definition of qualified medical practitioner.
15. Under those circumstances, we are of the considered view that Section 4(1)(c) does not stipulate a requirement of assessment by the medical practitioner who had treated the workmen concerned at the first instance. It is always open for the qualified medical practitioner to assess the loss of disability vis-a- vis loss of earning capacity with reference to the injuries sustained by him and if the employer or the Insurance Company was not satisfied with the assessment made by the medical practitioner, whose evidence was produced, contra evidence ought to have been adduced by the Insurance Company to rebut or impeach the evidence of the medical officer adduced on behalf of the workmen. In the absence of such evidence, we cannot find fault with the order of the learned Commissioner."
16. In the present case also, AW.2 was a qualified medical practitioner, who
was competent to assess the disability of the applicant and appeared before the
Commissioner and stated the reasons for assessing the disability vis-a-vis the
loss of earning capacity. The learned Commissioner not only considering the
evidence of AW.2, but also considering the nature of the job performed by the
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applicant and the injuries sustained by him were coming in the way of
discharging his duties as a driver, assessed the functional disability of the
applicant as 80% independently. Thus, this Court does not find any error or
illegality in the order of the learned Commissioner in assessing the functional
disability of the applicant as 80% and any substantial question of law arising out
of it. AW.2 was also a qualified medical practitioner, who could assess the
disability of the workman vis-a-vis the loss of earning capacity with reference to
the injuries sustained by the applicant. In the present case also, the Insurance
Company had not adduced any evidence contra to the evidence adduced by the
applicant to rebut the same.
17. Section 4-A(3)(a) of the Workmen's Compensation Act prescribed as to
how the compensation to be paid and penalty for default. It reads as follows:
Section 4-A of the Act states:
"4A. Compensation to be paid when due and penalty for default. -
(1) Compensation under section 4 shall be paid as soon as it falls due.
(2) In cases where the employer does not accept the liability for compensation to the extent claimed, he shall be bound to make provisional payment based on the extent of liability which he accepts, and, such payment shall be deposited with the Commissioner or made to the workman,
Dr.GRR, J cma_652_2013
as the case may be, without prejudice to the right of the workman to make any further claim.
(3) Where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall -
(a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve per cent per annum or at such higher, rate not exceeding the maximum of the lending rates of any scheduled bank as may be specified by the Central Government by notification in the Official Gazette, on the amount due; ands
(b) if, in his opinion, there is no justification for the delay, direct that the employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty percent of such amount by way of penalty:
Provided that an order for the payment of penalty shall not be passed under clause (b) without giving a reasonable opportunity to the employer to show cause why it should not be passed."
Thus, the Act itself prescribes that the rate of interest has to be awarded at
12% per annum.
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18. As per the judgment of the Hon'ble Apex Court in Oriental Insurance
Company Limited v. Siby George and Others 3 , the relevant date for
determination of the rate of compensation is the date of the accident and not the
date of adjudication of the claim by the Commissioner or the date when the
claim application was filed.
19. The learned Commissioner by also referring to the above judgment
awarded compensation from the date of accident till the date of its deposit. As
such, this Court does not find any merit in the contention of the learned counsel
for the appellant or any substantial questions of law arising in this matter.
20. In the result, the Civil Miscellaneous Appeal is dismissed confirming the
order dated 05.12.2012 passed in W.C.No.1 of 2012 by the learned
Commissioner for Workmen's / Employees Compensation and Deputy
Commissioner of Labor-II, T.Anjaiah Karmika Samkshema Bhavanam, RTC 'X'
Roads, Hyderabad. The applicant is permitted to withdraw the balance amount
of compensation with interest and costs deposited before the Commissioner
without furnishing any security.
No order as to costs.
AIR 2012 SC 3144
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As a sequel, miscellaneous applications pending in this appeal, if any
shall stand closed.
_____________________ Dr. G. RADHA RANI, J Date: 09th July, 2024 Nsk.
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