Case Note & Summary
The appellant, Ashok Raybhan Kashide, was a labourer working on a tempo owned by respondent No. 1. On 04.04.2012, while unloading granite sheets, a sheet fell on his right leg, causing a crush injury that led to amputation. He filed a claim under the Employees' Compensation Act, 1923, before the Civil Judge, Senior Division and Commissioner for Employees Compensation, Hingoli. The Commissioner assessed permanent disability at 75% and awarded Rs. 3,66,930/-. Aggrieved, the appellant appealed to the High Court, arguing that as a labourer, the amputation rendered him 100% incapable of earning. The High Court heard counsel for both sides. The court noted that the disability certificate (Exh. 24) stated 75% physical disability, but for a manual labourer, loss of a leg means total loss of earning capacity. Referring to Schedule I of the Act, the court held that amputation of a leg results in 100% loss of earning capacity. The court recalculated compensation: monthly wages Rs. 6,000/-, relevant factor 210 (age 33), and 100% loss, yielding Rs. 5,04,000/- (60% of Rs. 6,000 x 210). The court allowed the appeal, set aside the Commissioner's award, and directed respondent No. 2 (insurance company) to pay Rs. 5,04,000/- with 12% interest from the accident date, within six weeks.
Headnote
A) Employees Compensation - Loss of Earning Capacity - Assessment of Permanent Disability - The appellant, a labourer, suffered amputation of his right leg due to a workplace accident. The Commissioner assessed physical disability at 75% and awarded compensation accordingly. The High Court held that for a labourer, amputation of a leg results in 100% loss of earning capacity as he cannot perform manual labour. The court enhanced compensation by applying Schedule I of the Employees' Compensation Act, 1923, which specifies 100% loss of earning capacity for amputation of a leg. (Paras 4-6) B) Employees Compensation - Quantum of Compensation - Calculation under Section 4 - The court recalculated compensation based on monthly wages of Rs. 6,000/- and 100% loss of earning capacity, applying the formula under Section 4 of the Act. The compensation was enhanced from Rs. 3,66,930/- to Rs. 5,04,000/-, with interest at 12% per annum from the date of accident. (Paras 6-7)
Issue of Consideration
Whether the Commissioner for Employees Compensation erred in assessing the loss of earning capacity at 75% instead of 100% for a labourer whose leg was amputated, and whether the compensation awarded was just and proper.
Final Decision
Appeal allowed. Impugned judgment and award set aside. Respondent No. 2 (United India Insurance Co. Ltd.) directed to pay Rs. 5,04,000/- with interest at 12% per annum from the date of accident (04.04.2012) within six weeks.
Law Points
- Loss of earning capacity
- Permanent disability
- Amputation
- Employees' Compensation Act
- 1923
- Section 4
- Schedule I
- Commissioner for Employees Compensation
