| SooperKanoon Citation | sooperkanoon.com/843631 |
| Subject | Labour and Industrial |
| Court | Karnataka High Court |
| Decided On | Oct-09-2009 |
| Case Number | Miscellaneous First Appeal No. 8751 of 2008 |
| Judge | B. Sreenivase Gowda, J. |
| Acts | Workmen's Compensation Act - Sections 4 |
| Appellant | The Divisional Manager, Oriental Insurance Co. Ltd. Rep. by Regional Manager |
| Respondent | Ramanjappa, Driver |
| Appellant Advocate | C. Shankar Reddy, Adv. |
| Respondent Advocate | M. Vinaya Keerthy, Adv. |
| Cases Referred | Oriental Insurance Co. Ltd. v. Mohd. Nasir and Anr. |
B. Sreenivase Gowda, J.
1. This appeal is by the Insurance Company challenging the quantum of compensation awarded by the Commissioner for Workmen's Compensation, Davangere (for short 'the Commissioner').
2. For the sake of convenience parties are referred to as they are referred to in the claim petition before the Commissioner.
3. Brief facts of the case:
That on 14.07.2006 when the claimant was working as driver of the lorry bearing registration No. KA-04/B-4181 belonging to the 1st respondent, the lorry met with an accident, as a result, he sustained injuries. He made an application before the Commissioner seeking compensation.
4. The Insurance Company filed its statement of objections resisting the claim.
5. The claimant in support of his claim examined himself as PW 1 and the doctor as PW 2. He has produced as many as 13 documents, which are marked as Ex. P1 to P13.
6. The Insurance Company did not lead any independent evidence except producing the insurance policy Ex. R1(2).
7. The Commissioner after considering the oral and documentary evidence of the parties by the impugned judgment has held that the claimant has established that be sustained injuries in the accident occurred in the course of and out of employment and he is entitled for compensation, Thereafter the Commissioner taking into consideration the age of the claimant, nature of his job, the wages drawn by him, the disability stated by the doctor and assessing the loss of earning capacity at 40% and applying the relevant factor as per his age by the impugned award has awarded a compensation of Rs. 2,03,318/- with interest at 12% p.a. after 30 days from the date of award. Aggrieved by the quantum of compensation awarded by the Commissioner the Insurance Company is in appeal seeking reduction of compensation.
8. As there is no dispute regarding the injury sustained by the claimant in the accident occurred in the course of and out of employment and the liability of the Insurance Company the only substantial question of law that arises for consideration in this appeal is:
Whether the Commissioner is justified in assessing the salary of the claimant at Rs. 4,000/- p.m. and assessing the loss of earning capacity at 40% and awarding interest at 12% p.a. after 30 days from the date of award
9. Sri C. Shankar Reddy, learned Counsel appearing for the Insurance Company contended that PW 2 the doctor who issued disability certificate has stated that the claimant has sustained 35% to 45% disability to the limit but has not stated what is the percentage of loss of earning capacity on account of the injury sustained by the claimant in the accident and therefore the Commissioner is not justified in assessing the disability at 40% and awarding compensation and therefore he prays for allowing the appeal and reducing the compensation.
10. Per contra Sri Vinayakeerthi, learned Counsel appearing for the claimant contended that the claimant by working as driver in the lorry belonging to the 1st respondent before the Commissioner was earning Rs. 6,000/- p.m. and therefore the Commissioner is not justified in assessing his salary at Rs. 4,000/- p.m. He further contended that PW 2, though is not the treating the doctor has issued the disability certificate only after examining die claimant and therefore the Commissioner is justified to assessing the loss of earning capacity at 40%. He further submits that the interest awarded by the Commissioner is contrary to the judgment of the Supreme Court in the case of Oriental Insurance Co. Ltd. v. Mohd. Nasir and Anr. reported in 2009 AIR SCW 3717 and therefore he prays for dismissal of the appeal.
11. As there is no dispute between the parties that the claimant was working as driver in the lorry belonging to the 1st respondent before the Commissioner.
11(a) Even though the claimant has established that he was drawing tiie salary of Rs. 6,000/- p.m. but as per the explanation II to proviso of Section 4 of the Workmen's Compensation Act the Commissioner cannot take more than Rs. 4,000/- p.m. arid therefore the salary taken at Rs. 4,000/- is just and proper. However it is based on the material available on record and there is no substantial question of law involved inviting interference by this Court.
12. The claimant has sustained the fracture of upper end of tibia and fibula and lacerated wound. PW 2 the doctor issued the disability certificate only after examining the claimant and perusing the medical records stating that the claimant has sustained 35% to 45% disability to the limb. As per the provision of the W.C. Act the doctor is required to state what is the percentage of loss of earning capacity on account of the injury sustained by the claimant in the accident. At this juncture, learned Counsel appearing for the parties submit that instead of remanding the matter on this technical ground request this Court to assess the loss of earning capacity on the material available on record and award just and reasonable compensation. Considering the age of the claimant, nature of his job, the salary drawn by him, the disability stated by the doctor and perusing the wound certificate it is just and proper to assess the loss of earning capacity at 30%. That being so, the compensation would work out to Rs. 1,52,488.80 (Rs. 2400 x 211.79 x 30%) as against Rs. 2,03,318/- awarded by the Commissioner.
13. With regard to rate of interest the learned Counsel fairly submit it may be modified as per the judgment of the Apex Court in the case of Oriental Insurance Co. Ltd. v. Mohd. Nasir and Anr. reported in 2009 AIR SCW 3717 wherein it is held that the interest has to be awarded at 7 1/2% p.a. from the date of claim petition till the date of award and 12% p.a. from the date of award till the date of payment. Question of law is answered as above. Hence I pass the following:
ORDER
i) The appeal is allowed in part and the judgment and award of the Commissioner is modified.
ii) The claimant is entitled to a total compensation of Rs. 1,52,488.80 as against Rs. 2,03,318/- awarded by the Commissioner with interest at 7 1/2% p.a. from the date of claim petition till the date of award and 12% p.a. from the date of award till the date of payment and no order as to cost.
iii) In view of depositing of the entire award amount by the Insurance Company office is directed to calculate the amount payable to the claimant and the balance amount, if any, shall be refunded to the Insurance Company.
iv) The rest of the award of the Commissioner remains as it is.