Gujarat High Court Dismisses ESI Corporation's Appeal in Work Injury Disability Assessment. Medical Appeal Tribunal's 10% Functional Disability Finding Upheld as Factual Determination Not Open to Interference Under Section 82 of ESI Act.

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The Regional Director of the Employees' State Insurance Corporation (appellant) filed a First Appeal under Section 82 of the Employees' State Insurance Act, 1948, challenging the judgment and order dated 18.04.2024 passed by the learned Employees' State Insurance Court, Ahmedabad, in E.S.I. Second Appeal No.56 of 2023. The ESI Court had dismissed the Second Appeal and confirmed the 10% disablement assessed by the Medical Appeal Tribunal (MAT). The respondent, Tarunkumar Keshalal, was an employee of M/s. Arvind Intex in the Spinning Department. On 25.11.2019, while working, he sustained an employment injury on his right shoulder. The case was referred to the Medical Board after the B.I. Form was duly filled. The Medical Board found that though an injury had occurred, he had not sustained any functional disability and assessed the functional loss at 0%. Aggrieved, the respondent filed an appeal before the MAT, being MAT (Appeal) No.7 of 2022. By order dated 10.08.2022, the MAT after examining the X-ray report observed that there was a fracture of the humerus in his right hand, along with pain, swelling and reduced grip capacity and accordingly assessed 10% functional disability. Aggrieved, the ESI Corporation filed a Second Appeal before the ESI Court, which was dismissed. Hence, the present First Appeal was filed by the ESI Corporation. The High Court heard the matter and considered the limited scope of appeal under Section 82 of the ESI Act, which lies only on substantial questions of law. The Court noted that the MAT had assessed 10% functional disability based on the X-ray report showing fracture of the humerus and clinical findings of pain, swelling and reduced grip capacity. The Court found that the MAT's assessment was a finding of fact and not perverse. The Court held that no substantial question of law arises in the appeal and dismissed the same. The Court also observed that the appeal was devoid of merits and accordingly dismissed it with no order as to costs.

Headnote

A) Employees' State Insurance - Functional Disability Assessment - Medical Appeal Tribunal - Section 82 of Employees' State Insurance Act, 1948 - The ESI Corporation challenged the MAT's assessment of 10% functional disability for an employment injury to the right shoulder. The High Court held that the MAT's assessment, based on X-ray report showing fracture of humerus and clinical findings of pain, swelling and reduced grip capacity, is a finding of fact and not perverse. The appeal under Section 82, which lies only on substantial questions of law, cannot be entertained as no such question arises. (Paras 1-5)

B) Employees' State Insurance - Scope of Appeal - Substantial Question of Law - Section 82 of Employees' State Insurance Act, 1948 - The Court reiterated that the jurisdiction under Section 82 is confined to substantial questions of law. The MAT's assessment of disability, being a factual determination, does not give rise to a substantial question of law unless shown to be perverse or based on no evidence. (Paras 4-5)

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Issue of Consideration

Whether the Medical Appeal Tribunal's assessment of 10% functional disability based on clinical findings and X-ray report can be interfered with in an appeal under Section 82 of the Employees' State Insurance Act, 1948.

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Final Decision

The High Court dismissed the First Appeal, holding that no substantial question of law arises and the MAT's assessment of 10% functional disability is a finding of fact not perverse. No order as to costs.

Law Points

  • Functional disability assessment by Medical Appeal Tribunal is a finding of fact
  • not to be interfered with in appeal under Section 82 of ESI Act unless perverse
  • Medical Board's assessment of 0% functional disability can be overturned by MAT based on clinical evidence
  • Scope of appeal under Section 82 is limited to substantial questions of law
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Case Details

2026:GUJHC:22859

R/First Appeal No. 2352 of 2025 with Civil Application (For Stay) No. 1 of 2024

2026-03-16

J. C. Doshi

2026:GUJHC:22859

Mr. A.V. Nair for the Appellant, Notice Served for the Respondent

Regional Director, Employees State Insurance Corporation

Tarunkumar Keshalal

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Nature of Litigation

First Appeal under Section 82 of the Employees' State Insurance Act, 1948 challenging the dismissal of Second Appeal and confirmation of 10% disablement assessed by Medical Appeal Tribunal.

Remedy Sought

The appellant (ESI Corporation) sought to set aside the judgment of the ESI Court and the MAT order assessing 10% functional disability.

Filing Reason

The ESI Corporation was aggrieved by the MAT's assessment of 10% functional disability and the ESI Court's dismissal of its Second Appeal.

Previous Decisions

Medical Board assessed 0% functional disability; MAT (Appeal) No.7 of 2022 assessed 10% functional disability; ESI Court dismissed Second Appeal No.56 of 2023.

Issues

Whether the Medical Appeal Tribunal's assessment of 10% functional disability is a finding of fact not open to interference under Section 82 of the ESI Act. Whether any substantial question of law arises in the appeal.

Submissions/Arguments

The appellant argued that the MAT's assessment of 10% disability was erroneous and the Medical Board's 0% assessment should prevail. The respondent supported the MAT's finding based on clinical evidence and X-ray report.

Ratio Decidendi

The assessment of functional disability by the Medical Appeal Tribunal is a finding of fact based on medical evidence. An appeal under Section 82 of the ESI Act lies only on substantial questions of law. Unless the finding is perverse or based on no evidence, it cannot be interfered with.

Judgment Excerpts

This Appeal is filed under Section 82 of the Employees’ State Insurance Act, 1948... The MAT after examining the X-ray report observed that there was a fracture of the humerus in his right hand, along with pain, swelling and reduced grip capacity and accordingly assessed 10% functional disability. The appeal under Section 82 of the ESI Act lies only on substantial questions of law. The MAT's assessment of 10% functional disability is a finding of fact and not perverse. No substantial question of law arises.

Procedural History

On 25.11.2019, respondent sustained employment injury. Medical Board assessed 0% functional disability. Respondent filed MAT (Appeal) No.7 of 2022, which on 10.08.2022 assessed 10% disability. ESI Corporation filed Second Appeal No.56 of 2023 before ESI Court, dismissed on 18.04.2024. ESI Corporation filed First Appeal No.2352 of 2025 before High Court, dismissed on 16.03.2026.

Acts & Sections

  • Employees' State Insurance Act, 1948: Section 82
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High Court Gujarat High Court Dismisses ESI Corporation's Appeal in Work Injury Disability Assessment. Medical Appeal Tribunal's 10% Functional Disability Finding Upheld as Factual Determination Not Open to Interference Under Section 82 of ESI Act.
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