Case Note & Summary
The appellant, Sanjeev, a labourer aged 23, was working under respondent No.1 in a 407 Tempo bearing registration No. KA-23/7439. On 11.8.2008 at about 11.00 a.m., while unloading a machine from the tempo, the machine fell on him, causing severe injuries to his left arm. He sustained Type III-B compound fracture of left elbow and fracture of lower 1/3rd left humerus with comminuted fracture head of radius and lateral epicondyle with radial nerve injury. Ultimately, his left arm was amputated above the elbow. He filed a claim petition before the Labour Officer and Commissioner for Workmen's Compensation, Sub-Division-I, Belgaum, in W.C.A.S.R. No.21/2011. The Commissioner awarded compensation of Rs.1,64,640/- with interest at 12% per annum after one month of adjudication, assessing the loss of earning capacity at 50%. Aggrieved by the quantum, the appellant filed the present appeal under Section 30(1) of the Workmen's Compensation Act, 1923, seeking enhancement. The High Court examined the medical evidence and the provisions of the Act. It noted that as per Schedule I of the Act, amputation of an arm above elbow results in 100% loss of earning capacity. The court held that the Commissioner erred in assessing only 50% loss. The court recalculated compensation based on a monthly wage of Rs.3,000/- (as found by the Commissioner), a relevant factor of 215.28 (for age 23), and 60% of monthly wages, resulting in Rs.3,87,504/-. The court directed respondent No.2 (insurance company) to pay the enhanced amount with interest at 12% per annum from one month after the accident until realization, within six weeks.
Headnote
A) Workmen's Compensation - Loss of Earning Capacity - Amputation of Arm - Schedule I, Workmen's Compensation Act, 1923 - The appellant sustained amputation of left arm above elbow in a work-related accident. The Commissioner assessed loss of earning capacity at 50%. The High Court held that as per Schedule I, amputation of arm above elbow results in 100% loss of earning capacity, and the workman is entitled to compensation accordingly. (Paras 5-7) B) Workmen's Compensation - Permanent Total Disablement - Section 4(1)(b), Workmen's Compensation Act, 1923 - The court held that when a workman suffers amputation of an arm above elbow, it constitutes permanent total disablement, and compensation must be calculated at 60% of monthly wages multiplied by the relevant factor, without reduction for alleged partial disability. (Paras 6-8) C) Workmen's Compensation - Monthly Wages - Calculation - The court accepted the monthly wage of Rs.3,000/- as per the Commissioner's finding, and applied the relevant factor of 215.28 for age 23, resulting in enhanced compensation of Rs.3,87,504/- with interest at 12% per annum from one month after the accident. (Paras 8-9)
Issue of Consideration
Whether the Commissioner for Workmen's Compensation erred in assessing the loss of earning capacity at 50% instead of 100% for amputation of the left arm above elbow, and whether the compensation awarded is just and proper.
Final Decision
The appeal is allowed. The judgment and award dated 26.11.2011 in W.C.A.S.R. No.21/2011 is modified. The appellant is entitled to compensation of Rs.3,87,504/- with interest at 12% per annum from one month after the accident until realization. Respondent No.2 is directed to deposit the enhanced compensation within six weeks from the date of receipt of the order.
Law Points
- Workmen's Compensation Act
- 1923
- Section 4(1)(b)
- Schedule I
- loss of earning capacity
- amputation of arm
- functional disability
- permanent total disablement
