High Court of Bombay at Aurangabad Allows Appeal in Employees' Compensation Act Case — Employer's Failure to Produce Attendance Register Leads to Adverse Inference. Commissioner's denial of compensation for loss of earning capacity due to non-production of attendance register and lack of cross-examination of doctor is set aside.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
  • 78
Judgement Image
Font size:
Print

Case Note & Summary

The appellant, Munmahesh s/o Ramkhilawan Gupta, was the original claimant in a proceeding under the Employees' Compensation Act, 1923, seeking compensation for injuries sustained during employment with respondent No.1, M/s Sheet Shapers (I) Pvt. Ltd. The claimant alleged that on 15th September 2012, while operating a machine in the course of employment, he suffered a crush injury to his right hand, resulting in amputation of fingers and permanent disability. He claimed loss of earning capacity and medical expenses. The Commissioner for Employees' Compensation, Aurangabad, in W.C. No.04/2013, awarded compensation for medical expenses but denied compensation for loss of earning capacity, holding that the claimant failed to prove loss of earning capacity due to non-production of attendance register and because the doctor was not cross-examined. The claimant appealed to the High Court. The High Court framed the issue of whether the Commissioner erred in denying compensation for loss of earning capacity. The appellant argued that the employer failed to produce the attendance register despite being given an opportunity, and therefore an adverse inference should be drawn. The respondent contended that the claimant did not prove loss of earning capacity. The High Court held that the Commissioner's reasoning was erroneous: the employer's failure to produce the attendance register warranted an adverse inference under Section 114(g) of the Evidence Act, and the medical evidence regarding permanent disability should have been considered. The court set aside the Commissioner's order to the extent it denied compensation for loss of earning capacity and remanded the matter for fresh consideration of that aspect.

Headnote

A) Employees' Compensation - Loss of Earning Capacity - Section 4(1)(c) of Employees' Compensation Act, 1923 - Adverse Inference - Employer failed to produce attendance register despite opportunity - Court held that adverse inference under Section 114(g) of Evidence Act must be drawn against employer, and claimant's evidence regarding loss of earning capacity should be accepted - Commissioner's order set aside (Paras 5-7).

B) Employees' Compensation - Medical Evidence - Section 4(1)(c) of Employees' Compensation Act, 1923 - Doctor's evidence not cross-examined - Court held that Commissioner ought to have considered the medical evidence regarding permanent disability and loss of earning capacity - Failure to do so vitiates the order (Paras 6-7).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Commissioner erred in denying compensation to the claimant for loss of earning capacity under Section 4(1)(c) of the Employees' Compensation Act, 1923, by drawing an adverse inference against the employer for non-production of attendance register and by not considering the medical evidence properly.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Appeal allowed. The impugned order of the Commissioner is set aside to the extent it denies compensation for loss of earning capacity. The matter is remanded to the Commissioner for fresh consideration of the claim for loss of earning capacity in light of the observations made in the judgment.

Law Points

  • Adverse inference under Section 114(g) of Evidence Act for non-production of attendance register
  • Loss of earning capacity under Section 4(1)(c) of Employees' Compensation Act
  • 1923
  • Commissioner's duty to consider medical evidence
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (BOM) (04) 7

First Appeal No.4297 of 2016

2019-04-24

Sunil K. Kotwal, J.

Mr. S.N. Lute for Appellant, Mr. S.S. Vidwauns for Respondent No.1

Munmahesh s/o Ramkhilawan Gupta

Shri Ashish Nemichand Katariya (Occupier, M/s Sheet Shapers (I) Pvt. Ltd.) and Dipak Hareram Bade

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Appeal against order of Commissioner for Employees' Compensation denying compensation for loss of earning capacity.

Remedy Sought

Appellant sought compensation for loss of earning capacity due to permanent disability from workplace injury.

Filing Reason

Commissioner denied compensation for loss of earning capacity on grounds that claimant failed to prove loss due to non-production of attendance register and doctor not cross-examined.

Previous Decisions

Commissioner for Employees' Compensation, Aurangabad, in W.C. No.04/2013, awarded medical expenses but denied compensation for loss of earning capacity.

Issues

Whether the Commissioner erred in denying compensation for loss of earning capacity under Section 4(1)(c) of the Employees' Compensation Act, 1923. Whether adverse inference should be drawn against the employer for non-production of attendance register.

Submissions/Arguments

Appellant argued that employer failed to produce attendance register despite opportunity, warranting adverse inference; medical evidence showed permanent disability. Respondent contended that claimant did not prove loss of earning capacity as attendance register was not produced and doctor was not cross-examined.

Ratio Decidendi

When an employer fails to produce the attendance register despite being given an opportunity, an adverse inference under Section 114(g) of the Evidence Act must be drawn against the employer. The Commissioner ought to have considered the medical evidence regarding permanent disability and loss of earning capacity, and the failure to cross-examine the doctor does not automatically negate the evidence.

Judgment Excerpts

The employer failed to produce attendance register despite opportunity, therefore adverse inference under Section 114(g) of Evidence Act must be drawn. The Commissioner ought to have considered the medical evidence regarding permanent disability and loss of earning capacity.

Procedural History

Claimant filed W.C. No.04/2013 before Commissioner for Employees' Compensation, Aurangabad. Commissioner awarded medical expenses but denied compensation for loss of earning capacity. Claimant appealed to High Court of Bombay at Aurangabad via First Appeal No.4297 of 2016.

Acts & Sections

  • Employees' Compensation Act, 1923: Section 4(1)(c)
  • Indian Evidence Act, 1872: Section 114(g)
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Madras High Court Directs Municipal Authorities to Remove Encroachment by Religious Idol on Public Road — Mandamus Issued for Field Inspection and Removal of Unauthorized Structures Within Twelve Weeks. The court held that encroachments on public r...
Related Judgement
High Court High Court of Bombay at Aurangabad Allows Appeal in Employees' Compensation Act Case — Employer's Failure to Produce Attendance Register Leads to Adverse Inference. Commissioner's denial of compensation for loss of earning capacity due to non-produ...