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).
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.
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




