High Court of Karnataka Allows Insurance Company's Appeal in Workmen's Compensation Case — Loss of Earning Capacity Cannot Be Assessed at 100% Without Medical Evidence. Commissioner's Award Set Aside for Disregarding Medical Assessment and Schedule Prescribing Loss of Earning Capacity Under Workmen's Compensation Act, 1923.

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

The appellant, National Insurance Company Limited, filed a Miscellaneous First Appeal under Section 30(1) of the Workmen's Compensation Act, 1923, challenging the judgment and order dated 12.01.2011 passed by the Labour Officer and Commissioner for Workmen's Compensation, Sub-Division-2, Belgaum, in W.C.A./S.R.155/2009. The Commissioner had awarded compensation of Rs.4,28,376/- with interest at 12% per annum from the date of petition till deposit. The claimant, Basappa S/o. Siddalingappa Ambali, was a driver of a lorry who lost vision in his left eye due to an accident arising out of and in the course of employment in 2009. The Medical Practitioner assessed disability at 30%, and the Schedule (Serial No.36 of Part II of Schedule I) prescribed a specific loss of earning capacity for such injury. However, the Commissioner assessed loss of earning capacity at 100% on the ground that the workman, being a driver, could no longer drive a lorry. The Insurance Company contended that the Commissioner erred in disregarding the medical assessment and the Schedule. The High Court, relying on the Full Bench decision in Shivalinga Shivanagowda Patil v. Erappa Basappa Bhavihala, ILR 2004 Kar 193, held that the Commissioner cannot assess loss of earning capacity without or in disregard of the assessment of a qualified medical practitioner. The Court found that the Commissioner's conclusion was not based on evidence of total disablement but solely on the workman's avocation. The appeal was allowed, the impugned award was set aside, and the matter was remanded to the Commissioner for fresh assessment in accordance with law, considering the medical evidence and the Schedule.

Headnote

A) Workmen's Compensation - Loss of Earning Capacity - Assessment - Section 4(1)(c) Workmen's Compensation Act, 1923 - The Commissioner assessed 100% loss of earning capacity for a driver who lost vision in one eye, disregarding the medical assessment of 30% disability and the Schedule prescribing loss of earning capacity. The High Court held that the Commissioner cannot assess loss of earning capacity without or in disregard of the assessment of a qualified medical practitioner, and must consider the Schedule. The award was set aside and remanded for fresh assessment. (Paras 2-4)

B) Workmen's Compensation - Loss of Earning Capacity - Medical Evidence - Section 4(1)(c) Workmen's Compensation Act, 1923 - The Full Bench decision in Shivalinga Shivanagowda Patil v. Erappa Basappa Bhavihala, ILR 2004 Kar 193, held that the Commissioner cannot assess loss of earning capacity without medical evidence. The High Court applied this principle and found that the Commissioner's conclusion of 100% loss was not based on evidence but solely on the workman's avocation as a driver. (Paras 3-4)

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Issue of Consideration

Whether the Commissioner for Workmen's Compensation was justified in assessing the loss of earning capacity at 100% as against the medical assessment of 30% disability, in consonance with the injuries mentioned at Serial No.36 of Part II of Schedule I of the Workmen's Compensation Act, 1923.

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Final Decision

Appeal allowed. Impugned award set aside. Matter remanded to Commissioner for Workmen's Compensation for fresh assessment in accordance with law, considering medical evidence and Schedule I of the Workmen's Compensation Act, 1923.

Law Points

  • Loss of earning capacity under Workmen's Compensation Act must be assessed based on medical evidence and Schedule
  • not solely on avocation
  • Commissioner cannot disregard medical assessment without proper evidence
  • Full Bench decision in Shivalinga Shivanagowda Patil v. Erappa Basappa Bhavihala governs assessment of loss of earning capacity.
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Case Details

2014 LawText (KAR) (11) 21

Miscellaneous First Appeal No. 22157/2011 (WC)

2014-11-27

Anand Byrareddy

Sri S.K. Kayakamath for appellant; Sri Vithal S. Teli for respondent No.1; Respondent No.2 served.

The Divisional Manager, National Insurance Company Limited, Ramdev Galli, Belgaum, Represented by National Insurance Company Limited, Divisional Office, Sujata Complex, Near Old Bus Stand, Hubli, By Its Administrative Officer.

1. Basappa S/o. Siddalingappa Ambali, Age. 45 years, Occ. Driver, Now – Nil, R/o. Katakol vg, Taluk Ramdurg, District Belgaum. 2. Basvaraj M. Tuppad, Age. Major, Occ. Business, R/o. Hanumasagar, Chunchanur Vg, Taluk Ramdurg, District Belgaum.

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Nature of Litigation

Appeal against award of compensation under Workmen's Compensation Act, 1923.

Remedy Sought

Insurance Company sought to set aside the award of compensation of Rs.4,28,376/- with interest.

Filing Reason

Commissioner assessed loss of earning capacity at 100% disregarding medical assessment of 30% disability and Schedule.

Previous Decisions

Commissioner for Workmen's Compensation awarded compensation of Rs.4,28,376/- with interest at 12% per annum from date of petition till deposit.

Issues

Whether the Commissioner was justified in assessing loss of earning capacity at 100% as against medical assessment of 30% disability and Schedule I of the Workmen's Compensation Act, 1923.

Submissions/Arguments

Appellant (Insurance Company) argued that the Commissioner erred in disregarding the medical assessment and the Schedule, and relied on Full Bench decision in Shivalinga Shivanagowda Patil v. Erappa Basappa Bhavihala. Respondent (claimant) contended that as a driver, loss of vision in one eye rendered him totally disabled for his avocation.

Ratio Decidendi

The Commissioner under the Workmen's Compensation Act cannot assess loss of earning capacity without or in disregard of the assessment of a qualified medical practitioner and the Schedule prescribing loss of earning capacity. The conclusion of 100% loss based solely on the workman's avocation, without evidence of total disablement, is unsustainable.

Judgment Excerpts

The substantial question of law raised in this appeal is whether the Commissioner for Workmen's Compensation was justified in assessing the loss of earning capacity at the rate of 100% as against the compensation of disability at the rate of 30% assessed by the Medical Practitioner, which is in consonance with the injuries mentioned at Serial No.36 of Part - II Schedule – I of the W.C. Act. Such a conclusion arrived at is not on the basis of any evidence tendered as regards total disablement, but only on the premise that the avocation in which the workman was engaged was as a driver, and that he was no longer capable of driving a lorry.

Procedural History

The claimant filed a claim petition before the Labour Officer and Commissioner for Workmen's Compensation, Sub-Division-2, Belgaum, which was registered as W.C.A./S.R.155/2009. The Commissioner awarded compensation of Rs.4,28,376/- with interest at 12% per annum from the date of petition till deposit on 12.01.2011. The Insurance Company appealed under Section 30(1) of the Workmen's Compensation Act, 1923 before the High Court of Karnataka, Dharwad Bench, which allowed the appeal and remanded the matter on 27.11.2014.

Acts & Sections

  • Workmen's Compensation Act, 1923: Section 30(1), Section 4(1)(c), Schedule I Part II Serial No.36
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