High Court of Karnataka Dismisses Employer's Appeal in Workmen's Compensation Case — Upholds 100% Loss of Earning Capacity for Amputation of Three Fingers. Schedule I of Employee's Compensation Act, 1923 is Not Exhaustive; Commissioner Can Assess Functional Disability Based on Evidence.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
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Case Note & Summary

The appeal was filed by the employer, M/s. Bharat Emery Works and its partners, challenging the award dated 19.02.2009 passed by the Labour Officer and Commissioner for Workmen's Compensation, Sub Division II, Belgaum, in WCA/SR No.122/2005. The claimant, Salim Khutubuddin Mulla, was employed as an emery worker in the appellant's firm. On 14.09.2004, while working as per instructions, his right hand got stuck in a machine, resulting in fractures of fingers. During treatment at KLE Hospital, Belgaum, his three fingers had to be amputated. The Commissioner awarded compensation assessing 100% loss of earning capacity. The employer appealed, contending that under Part-II of Schedule I of the Employee's Compensation Act, 1923, for loss of three fingers of one hand, the loss of earning capacity should be taken at 30%, and the Commissioner had violated the statutory norm. The court considered the only substantial question of law raised by the appellant. The court held that the percentages in Schedule I are not exhaustive or binding; they are guidelines for specific injuries. The Commissioner has the discretion to assess the actual loss of earning capacity based on the evidence, including the nature of the injury, the worker's occupation, and the impact on his earning ability. In this case, the claimant, a manual worker, lost three fingers of his right hand, which rendered him unable to perform his job as an emery worker. The Commissioner's assessment of 100% loss of earning capacity was based on functional disability and was not arbitrary. The court dismissed the appeal, upholding the award.

Headnote

A) Workmen's Compensation - Loss of Earning Capacity - Schedule I of Employee's Compensation Act, 1923 - The Commissioner is not bound by the percentages specified in Schedule I; the schedule provides a minimum or standard for specific injuries, but the actual loss of earning capacity must be determined based on the nature of the injury, the worker's occupation, and the impact on his ability to earn. In this case, the claimant, an emery worker, lost three fingers of his right hand, rendering him unable to perform his job. The Commissioner's assessment of 100% loss of earning capacity was upheld as it was based on the functional disability and the evidence on record. (Paras 3-5)

B) Workmen's Compensation - Amputation of Fingers - Functional Disability - Employee's Compensation Act, 1923, Schedule I - The amputation of three fingers of the right hand of a manual worker can result in total loss of earning capacity if the worker is unable to continue his employment. The court held that the Commissioner had correctly applied the principle that the loss of earning capacity is not merely a mechanical application of Schedule I but requires a holistic assessment of the worker's disability in relation to his work. (Paras 4-5)

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Issue of Consideration

Whether the Commissioner for Workmen's Compensation was justified in assessing 100% loss of earning capacity for loss of three fingers of one hand, despite Schedule I of the Employee's Compensation Act, 1923 prescribing 30% for such injury.

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Final Decision

The appeal was dismissed. The court upheld the award of the Commissioner for Workmen's Compensation, finding no illegality in the assessment of 100% loss of earning capacity.

Law Points

  • Loss of earning capacity under Employee's Compensation Act
  • 1923 is not limited to Schedule I percentages
  • Commissioner can assess functional disability based on evidence
  • Schedule I is only a guide for specific injuries
  • amputation of three fingers may result in 100% loss of earning capacity if worker cannot perform his job
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Case Details

2021 LawText (KAR) (07) 33

MFA NO.21224 OF 2009 (WC)

2021-07-13

P. Krishna Bhat

Sri. S S Beturmath, Sri. K L Patil, Sri. S. B. Naik, Sri. Sandeep Desai, Sri. Ahmed Ali Rahimansha (for appellants); Sri. Harish Maigur, Sri. R M Hiremath (for respondents)

M/s. Bharat Emery Works, Abdulgani Kashimsab Chonche, Smt. Reshma W/o Sahid Chonche, Smt. Rehana W/o Zakirhussain Chonche

The Commissioner Workmens Compensation Upa Vibhag-II, Belgaum, Salim Khutubuddin Mulla

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Nature of Litigation

Appeal under Section 30(1) of the Employee's Compensation Act, 1923 against the award of the Commissioner for Workmen's Compensation.

Remedy Sought

The appellants (employer and partners) sought to set aside the award dated 19.02.2009 passed by the Commissioner.

Filing Reason

The employer challenged the Commissioner's assessment of 100% loss of earning capacity for loss of three fingers, contending that Schedule I prescribes only 30%.

Previous Decisions

The Commissioner for Workmen's Compensation, Sub Division II, Belgaum, passed an award on 19.02.2009 in WCA/SR No.122/2005, awarding compensation based on 100% loss of earning capacity.

Issues

Whether the Commissioner was justified in assessing 100% loss of earning capacity for loss of three fingers of one hand, despite Schedule I prescribing 30%?

Submissions/Arguments

Appellant argued that as per Part-II of Schedule I of the Employee's Compensation Act, 1923, for loss of three fingers of one hand, the loss of earning capacity should be taken at 30%, and the Commissioner violated the statutory norm by assessing 100%.

Ratio Decidendi

The percentages specified in Schedule I of the Employee's Compensation Act, 1923 are not exhaustive or binding; they are guidelines for specific injuries. The Commissioner has the discretion to assess the actual loss of earning capacity based on the evidence, including the nature of the injury, the worker's occupation, and the impact on his earning ability. In this case, the claimant, a manual worker, lost three fingers of his right hand, rendering him unable to perform his job, justifying 100% loss of earning capacity.

Judgment Excerpts

The only substantial question of law contended by the learned counsel appearing for the appellant is that as per Part-II of Schedule-I of the Employee’s Compensation Act, 1923, for loss of three fingers of one hand, the loss of earning capacity should be taken at 30% and the learned Commissioner having determined the loss of earning capacity at 100%, has violated the norm fixed by the statute itself and, therefore, it is illegal. The percentages in Schedule I are not exhaustive; they are guidelines. The Commissioner has the discretion to assess the actual loss of earning capacity based on the evidence.

Procedural History

The claimant filed a claim petition before the Commissioner for Workmen's Compensation, Sub Division II, Belgaum, which was allowed on 19.02.2009. The employer and partners appealed to the High Court of Karnataka under Section 30(1) of the Employee's Compensation Act, 1923. The appeal was heard and dismissed on 13.07.2021.

Acts & Sections

  • Employee's Compensation Act, 1923: Section 30(1), Schedule I
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High Court High Court of Karnataka Dismisses Employer's Appeal in Workmen's Compensation Case — Upholds 100% Loss of Earning Capacity for Amputation of Three Fingers. Schedule I of Employee's Compensation Act, 1923 is Not Exhaustive; Commissioner Can Assess F...
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