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Karnataka High Court · body

2009 DIGILAW 772 (KAR)

National Insurance Company Limited, Bangalore v. Shankar Shetty

2009-10-09

B.SREENIVASE GOWDA

body2009
JUDGMENT : This appeal is by the Insurance Company challenging the quantum of compensation awarded by the Commissioner for Workmen’s Compensation. Hassan (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 10-12-2005 when the claimant was working as loader of the lorry bearing Registration No. KA-18 A-4344 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 P.W. 1 and the doctor who treated him as P.W. 2. He has produced as many as 12 documents which are marked as Exs. P. 1 to P.12. 6. The Insurance Company except producing the insurance policy did not lead any independent evidence. 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 he 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 30% and applying the relevant factor as per his age by the impugned order has awarded a Compensation of Rs. 1,19,423/-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. 3,500/- p.m. and assessing the loss of earning capacity at 30% and awarding interest at 12% p.a. after 30 days from the date of award? 9. 3,500/- p.m. and assessing the loss of earning capacity at 30% and awarding interest at 12% p.a. after 30 days from the date of award? 9. Learned Counsel appearing for the Insurance Company Contended that exept the self–serving statement of the claimant that he was drawing salary of Rs. 3,500/- p.m. excluding batta of Rs. 50/- per day he has not produced any documentary evidence to that effect and therefore the Commissioner is not justified in assessing his salary at Rs. 3,500/-. He further contended that the doctor has stated the claimant has sustained 25% disability to the limb and he has not stated what is the disability caused to the whole body and what is the percentage of loss of earning capacity. Therefore, the Commissioner is not justified in assessing the loss of earning capacity at 30% and therefore he prays for allowing the appeal by reducing the compensation. 10. Per contra learned Counsel appearing for the claimant contended that the claimant by working as loder in the lorry belonging to the 1st respondent was earning Rs. 3,000/- p.m. excluding batta of Rs. 50/- per day and therefore the Commissioner is not justified in assessing his salary at Rs. 3,500/- p.m. To disprove this contention the Insurance Company has not adduced any evidence and therefore the Commissioner is justified in assessing his salary at Rs. 3,500/- p.m. He further contended that the Commissioner Considering the disability stated by the doctor and observing the condition of the claimant has rightly assessed the loss of earning capacity at 30% and there is no scope for reduction of compensation and he prays for dismissal of the appeal. He further contended that interest has to be awarded at 7½ % p.a. form the date of claimant petition till the date of award and 12 % p.a. from the date of award till the date of payment. 11. There is no dispute between the parties that the claimant was working as loader and therefore the Commissioner is justified in assessing his income at Rs. 3,500/- p.m. However, there is no substantial question of law involved inviting interference of this Court, P.W. 2- the doctor apart from stating the disability caused to the body is also required to state what is the percentage of loss of earning capacity on account of the injury sustained by him in the accident. 3,500/- p.m. However, there is no substantial question of law involved inviting interference of this Court, P.W. 2- the doctor apart from stating the disability caused to the body is also required to state what is the percentage of loss of earning capacity on account of the injury sustained by him in the accident. In the absence of such evidence the Commissioner is not justified in assessing the loss of earning capacity at 30%. Instead of remanding the matter to the Commissioner for reconsideration on this technical ground learned Counsel appearing for the parties submit that this Court may assess the loss of earning capacity and award just and reasonable compensation. Considering the year of accident, age of the claimant, the injury sustained by him and disability stated by the doctor it is just and proper to assess the loss of earning of earning capacity at 15%. If so, the compensation would work out to Rs. 59,711.40 (Rs. 2100 X 189.56 X 15%) 12. 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 Company Limited V. Mohd. Nasir and Another 2009 AIR SCW 3717 wherein it is held that interest has to be paid at the rate of 7½ p.a. from the date of claim petition till the date of award and 12% p.a. from the date award till the date of payment. Question of law framed 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. 59,711.40 as against Rs. 1,19,423/- awarded by the Commissioner with interest at 7½ p.a. from the date of claim petition till the date of award and 12% p.a. from the date of awarded till the date of payment and no order as to cost. (iii) In view of depositing of entire award amount by the Insurance Company office is directed to calculate the amount payable to the claimant as per this order and refund the balance amount, if any, to the Insurance Company. (iv) The rest of the award of the Commissioner remains as it is.