Case Note & Summary
The appeal was filed by the insurer under Section 30(1) of the Employees' Compensation Act, 1923, challenging the judgment and award dated 10.12.2021 passed in ECA No.8/2020 by the Commissioner for Employees Compensation, I Additional Senior Civil Judge and MACT, Gokak. The claimant, a truck driver, had filed a claim petition seeking compensation for injuries sustained in an accident on 01.11.2017 while driving a truck bearing No.MH-09/BC-3645 near Nerli Village. The claimant alleged that tractor-trailers loaded with sugarcane came in a zig-zag manner and suddenly applied brakes, causing his truck to collide with their rear. He sustained three simple injuries: cut lacerated wound over left forearm, cut lacerated wound over left zygoma region, and facial abrasion on left side. He was treated as an inpatient from 01.11.2017 to 06.11.2017 and produced medical bills amounting to Rs.37,850. The owner denied the employer-employee relationship, claiming the claimant was only a one-day trip driver, and contended that the vehicle was validly insured. The insurer denied liability, citing absence of permit and fitness certificate. The Commissioner awarded compensation by applying Section 4(1)(d) of the E.C. Act, treating the claimant's injuries as causing 25% disability, despite no disability certificate or doctor's evidence. The judgment mentioned an amount of Rs.1,42,810, but the operative award reflected Rs.2,30,141, and interest was awarded at 12% per annum from the date of petition. The High Court framed two substantial questions of law: whether the Commissioner's consideration of lacerated wounds as resulting in disability and loss of earning capacity was perverse, and whether the Commissioner acted perversely in showing the award amount as Rs.2,30,141 though compensation was assessed at Rs.1,42,810. The insurer argued that the Commissioner misapplied Section 4(1)(d) by treating 25% disability instead of computing 25% of monthly wages for temporary disablement, that no disability certificate or doctor was examined, and that the award amount was inconsistent. The claimant's counsel relied on North East Karnataka Road Transport Corporation v. Sujatha to argue that the Commissioner's finding was factual and no substantial question of law arose, but conceded the discrepancy in the award amount. The High Court held that where a finding of fact is perverse, as when no legal evidence was brought on record, a substantial question of law arises under Section 30(1). It found that the claimant had only three simple injuries, was hospitalized for six days, and no disability certificate or doctor's evidence was produced. Under Section 4(2) of the E.C. Act, for temporary disablement lasting less than 28 days, compensation is payable for the actual period of disablement. Taking the claimant's monthly wages as Rs.8,000 based on the Central Government Notification dated 31.05.2010, the court computed 25% of monthly wages as Rs.2,000, per day Rs.66.67, and for six days Rs.400. Adding medical expenses of Rs.37,850, the court held the claimant entitled to total compensation of Rs.38,250 instead of Rs.1,04,960 awarded by the Commissioner under the disablement head. On the second issue, the court found the discrepancy between the judgment and award amounts improper and also held that under Section 4-A(3)(a) of the E.C. Act, interest at 12% per annum is payable after one month from the date of accident, not from the date of accident or petition. Accordingly, the appeal was allowed in part, and the judgment and award were modified to award Rs.38,250 with interest at 12% per annum after one month from the accident till deposit.
Headnote
A) Appeal and Substantial Question of Law - Perversity - Section 30(1) Employees Compensation Act, 1923 - A finding of fact is perverse when no legal evidence was brought on record or jurisdictional facts were not brought on record - Commissioner's finding of disability and loss of earning capacity without disability certificate or doctor's examination was perverse, giving rise to substantial question of law - Held, appeal maintainable and substantial question of law arose (Paras 25-26). B) Employees Compensation - Temporary Disablement Compensation - Sections 4(1)(d) and 4(2) Employees Compensation Act, 1923 - Compensation for temporary disablement must be computed based on actual period of disablement, not assumed percentage of permanent disability - Claimant sustained three simple injuries and was inpatient for six days, no disability certificate or doctor examined; Commissioner erroneously awarded Rs.1,04,960 under disablement head; High Court calculated Rs.400 for six days and added medical expenses of Rs.37,850, total Rs.38,250 - Held, Commissioner's disablement assessment perverse and modified (Paras 13-27). C) Employees Compensation - Interest on Compensation - Section 4-A(3)(a) Employees Compensation Act, 1923 - Interest at 12% per annum payable after one month from date of accident, not from date of accident or petition - Tribunal awarded interest from date of petition; High Court modified to interest at 12% per annum after one month from accident till deposit - Held, award modified accordingly (Paras 28-29).
Issue of Consideration
Whether the Commissioner perversely considered lacerated wound suffered by claimant resulted in disability and loss of earning capacity; Whether the Commissioner acted perversely in showing the award amount as Rs.2,30,141 though he had assessed the compensation at Rs.1,42,810.
Final Decision
Appeal filed under Section 30(1) of Employees' Compensation Act, 1923 allowed in part; judgment and award dated 10.12.2021 in ECA No.8/2020 modified; claimant entitled to total compensation of Rs.38,250 instead of Rs.1,04,960 awarded by Commissioner, with interest at 12% per annum after one month from accident till deposit.
Law Points
- Appeal under Section 30(1) of Employees' Compensation Act
- 1923 lies only on substantial question of law
- Perversity of finding of fact gives rise to substantial question of law
- Temporary disablement compensation under Section 4(2) is calculated based on actual period of disablement
- not presumed disability percentage
- Interest under Section 4-A(3)(a) payable at 12% per annum after one month from date of accident
- Medical expenses awarded based on actual bills produced
