✦ High Court of India

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Case Details

MFA 68/2008 BEFORE THE HON’BLE MR. JUSTICE B.P. KATAKEY

Legal Reasoning

These two appeals having arisen out of the same accident occurred on 16th Septem ber, 2002, are taken up for hearing and disposal together, as agreed to by the l earned counsel appearing for the parties. These appeals have been preferred by the Insurance Company challenging the award s dated 11th January, 2007 passed in NWC Case No.272/2002 (subject matter in MFA No.68/2008) and dated 28th December, 2006 passed in NWC Case No.273/2002 (subje ct matter in MFA No.15/2009), awarding compensation of Rs.1,13,507/- and Rs.1,06 ,082/-, respectively, with interest @ 9% per annum from the date of accident til l the date of realization, and directing the Insurance Company to satisfy the sa id awards, there being no dispute relating to the contract of insurance between the Insurance Company and the employer of the claimants. These appeals were admitted for hearing on the following substantial questions o f law:- (cid:28)1. Whether the injury sustained by the claimant not being one as specified in S chedule I Part-II of the Workmen’s Compensation Act, 1923 and there being no evi dence and finding at all to show that the alleged disablement of the claimant re duces his earning capacity in every employment which he was capable of undertaki ng at the time of accident, the learned Commissioner was justified in granting c ompensation in accordance of the provisions of Section 4(1)(C)(ii) of the Act. 2. Whether, the Medical Practitioner having purportedly assessed the loss of ear ning capacity of the claimant at 40% without due regard to the percentage of los s of earning capacity in relation to the injuries specified in Schedule-I of the Workmen’s Compensation Act, 1923, the learned Commissioner has been justified i n acting upon the said purported assessment and granting compensation under Sect ion 4(1)(C)(ii) of the Act. (cid:29)

Legal Reasoning

I have heard Mr. BC Das, learned senior counsel appearing for the appellants and Mrs. KM Talukdar, learned counsel appearing for the claimants/respondents. None appears for the employer, despite service of notice. Mr. Das, learned senior counsel appearing for the appellants/Insurance Company, referring to the impugned awards has submitted that the learned Commissioner has passed the award under Section 4(1)(c)(ii) of the Workmen’s Compensation Act, 1 923 (now Employees’ Compensation Act, 1923) without considering whether the inju ries sustained by the claimants reduce their earning capacity in every employmen t or in any employment. The learned senior counsel referring to a judgment pass ed by this Court in National Insurance Company Limited -Vs- Bimal Nath & Ors. re ported in 2009 (1) GLT 370 has submitted that in the absence of any finding in t hat regard, no award can be passed under Section 4(1)(c)(ii) of the 1923 Act and hence, the matter may be remitted to the learned Commissioner for fresh decisio n in that regard. Per contra, Mrs. Talukdar, learned counsel appearing for the claimants has submi tted that it is apparent from the nature of injuries sustained by the claimants that the injuries suffered by them have reduce their earning capacity in every e mployment and hence, the learned Commissioner has rightly awarded the compensati on under Section 4(1)(c)(ii) of the 1923 Act and, therefore, the awards passed n eed no interference. This Court in National Insurance Company Limited (supra) has held that while ass essing the compensation under Section 4(1)(c)(ii) of the 1923 Act, the learned C ommissioner is required to find out whether the disablement is of a permanent na ture, which reduces the earning capacity of the workman in every employment whic h he was capable of undertaking and not merely the particular employment in whic h he was engaged at the time of accident. It appears from the impugned awards passed by the learned Commissioner that with out recording any finding in that regard, amount of compensation has been awarde d under Section 4(1)(c)(ii) of the Act. It also appears from the nature of injuries sustained by the workman that such i njuries do not reduces the earning capacity of the workman in every employment.

Decision

That being the position, without remanding the matters to the learned Commission er, Workmen’s Compensation for fresh decision, I am of the view that, to cut sho rt the life of the litigation, the appeals should be disposed of on merit awardi ng the compensation under Section 4(1)(d) of the 1923 Act, for a period of 5(fiv e) years with effect from the date of accident, i.e. 16th September, 2002. The amount of monthly wages of the claimants being Rs.2400/-, they would be enti tled to 50% of the wages per month for a period of 5(five) years, which comes to Rs.72,000/-. The claimants would also be entitled to interest @ 12% per month, under Section 4(A)(3)(a) of the 1923 Act, from the date of accident till the da te of payment. In the instant case, 50% of the awarded amount has been deposited and released i n favour of the claimants in the month of May, 2009 and hence, they will be enti tled to the interest @ 12% per annum from 16th September, 2002 to May, 2009 on R s.72,000/- and thereafter, from May, 2009 to October, 2013 at the same rate of 1 2% on the balance amount of Rs.15,000/- (in respect of MFA No.68/2008) and Rs.19 ,000/- (in respect of MFA No.15/2009). The amount of interest payable for these periods are calculated at Rs.65,000/- and Rs.68,000/-, respectively. The claimants in MFA No.68/2008 would, therefore, be entitled to further amount of Rs.15,000/- towards the principal amount and interest amounting to Rs.65,000 /-, totaling Rs.80,000/-. The claimants in MFA No.15/2009 would be entitled to R s.19,000/- towards the principal amount and Rs.68,000/- towards the interest, to taling Rs.87,000/-, since the half of the awarded amount has already been deposi ted and paid by the Insurance Company to the claimants in the month of May, 2009 . The aforesaid amounts shall be deposited by the appellant/Insurance Company befo re the Registry of this Court within a period of 1(one) month from today. The sa id amount then be released in favour of the respective claimants by account paye e cheques, on being identified to the satisfaction of the Registrar General of t his Court. The appeals are accordingly disposed of. No costs.

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