Case Note & Summary
The appeal was filed by the Oriental Insurance Company against the order of the Labour Officer and Commissioner for Workmen's Compensation, Sub Division-3, Bannerghatta Road, Bangalore, dated 19th June 2006, in CWC-3/NFC/CR-43/02. The Commissioner had awarded compensation of Rs. 3,81,222/- with 12% interest per annum from 21/06/2002 till deposit to the injured claimant, Ravi, who had claimed Rs. 6,00,000/-. The Insurance Company sought reduction of compensation on the ground that it was highly exorbitant and excessive. The claimant, Ravi, was a workman employed by M/s. Friendly Transport, and he suffered injuries in the course of employment. The medical evidence indicated a disability of 26%, but the Commissioner assessed the loss of earning capacity at 100%. The Insurance Company raised substantial questions of law: whether the Commissioner was justified in taking the loss of earning capacity at 100% contrary to medical evidence, and whether the Commissioner is competent to ignore medical evidence and assess loss of earning capacity on his own, citing the Full Bench decision of this Court in Shivalinga Shivanagowda Patil & others Vs. Erappa Basappa Bhavihala & others, ILR 2004 KAR 193. The High Court, after hearing the parties, held that the Commissioner had erred in assessing loss of earning capacity at 100% without proper basis and contrary to medical evidence. The Court set aside the order and remanded the matter to the Commissioner for fresh assessment of loss of earning capacity in accordance with law, based on medical evidence. The appeal was allowed in part.
Headnote
A) Workmen's Compensation - Loss of Earning Capacity - Assessment Based on Medical Evidence - Workmen's Compensation Act, 1923, Section 4(1)(c) - The Commissioner assessed loss of earning capacity at 100% despite medical evidence showing only 26% disability - The High Court held that the Commissioner must base the assessment on medical evidence and cannot arbitrarily assume 100% loss - The matter was remanded for fresh assessment (Paras 1-3).
Issue of Consideration
Whether the Commissioner was justified in taking the loss of earning capacity at 100% contrary to medical evidence indicating 26% disability, and whether the Commissioner is competent to ignore medical evidence and assess loss of earning capacity on his own.
Final Decision
Appeal allowed in part. The order dated 19/06/2006 passed in CWC-3/NFC/CR-43/02 is set aside. The matter is remanded to the Commissioner for Workmen's Compensation for fresh assessment of loss of earning capacity in accordance with law, based on medical evidence.
Law Points
- Loss of earning capacity must be assessed based on medical evidence
- Commissioner cannot ignore medical evidence
- Workmen's Compensation Act
- 1923 Section 4(1)(c)
- 1923 Section 30(1)
