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2009(4) Supreme 589
SUPREME COURT OF INDIA
S.B. Sinha and Dr. Mukundakam Sharma, JJ.
Oriental Insurance Co. Ltd. — Appellants
versus
Mohd. Nasir & Anr. — Respondents
Civil Appeal No. 3486 of 2009
(Arising out of SLP (C) No.11215 of 2006)
with
Civil Appeal Nos. 3495, 3496, 3497 and 3484 of 2009
(Arising out of SLP (C) No.16171, 21012 of 2006, 74 of 2007 and 2854 of 2008)
Decided on : 12-05-2009
(b) Interpretation of statutes – Both the statutes provide that the amount of compensation in cases of this nature would be directly relatable to the percentage of physical disability suffered by the injured vis-à-vis the injuries specified in the First Schedule of the 1923 Act – Therefore, mode and manner provided for calculating the amount of compensation in the 1923 Act would be applicable. (Para 11)
(c) Judicial Review – While determining the amount of loss of earning capacity, the Tribunal or the High Court must record reasons for arriving at their conclusion. (Para 12)
(d) Motor Vehicles Act, 1988 – Second Schedule r/w First Schedule, Workmen Compensation Act, 1923 – Functional disability has a direct relationship with the loss of limb. (Paras 12 and 16)
(2007) 2 SCC 349 – Relied upon.
(e) Workmen Compensation Act, 1923 – Section 4A(3) – Interest would become due and payable from the date of default and not from the date of award of compensation – There is no bar on granting a higher rate of interest. (Paras 22 and 23)
(2007) 2 SCC 349 – Relied upon.
(f) Compensation – It is the duty of the Commissioner under the 1923 Act or the Tribunal under the 1988 Act to determine the compensation even if no amount has been claimed – Higher compensation, if proper, can be awarded even by allowing the claim to be amended. (Para 27)
(2003) 2 SCC 274; (2009) 2 SCC 225; (2007) 3 SCC 700; (2005) 6 SCC 776; 2008 (13) SCALE 621 – Relied upon.
(2005) 12 SCC 217 – Referred.
Facts of the case :
1. Applicability of the respective provisions of the Workmen Compensation Act, 1923 and Motor Vehicles Act, 1988 in respect of the claimants who had suffered disability is the question involved in this appeal.
Finding of the Court :
Impugned judgments and awards cannot be sustained.
Result : Appeals disposed of.
JUDGMENT
S.B. Sinha, J.—
1. Leave granted.
2. Applicability of the respective provisions of the Workmen Compensation Act, 1923 (1923 Act) and Motor Vehicles Act, 1988 (1988 Act) in respect of the claimants who had suffered disability is the question involved in this appeal.
3. The factual matrix involved in these cases would be noticed by us separately.
SLP (C) NO.11215 OF 2006
First respondent in this appeal was the driver of a truck bearing registration No.UP-21-9636. Respondent No.2 was its owner. An accident took place on 2.10.2004 wherein first respondent suffered an injury in his right leg besides others. He filed an application for award of compensation in terms of the provisions of the 1923 Act before the Commissioner of Workmen Compensation, Moradabad claiming a sum of Rs.1,50,000/- with interest. The Commissioner opined that although the workmen had suffered 15% disability but loss of his earning capacity was 100%. Noticing that he was aged about 35 years and his salary was Rs. 3,200/- per month, a sum of Rs. 3,78,355.20 was awarded with interest at the rate of 12% per annum from the date of accident till payment.
The High Court dismissed the appeal in limine.
SLP (C) NO.16171 OF 2006
Respondent No.1 was a cleaner in a truck. It collided with a tanker on 17.7.2002 resulting in fracture of his femur right thigh. Respondent No.1 was hospitalized from 19.7.2002 to 7.8.2002. He filed claim petition under the 1923 Act for a sum of Rs.3,00,000/-.
By an order dated 8.9.2003, the Commissioner awarded a sum of Rs.93,302/- on the premise that he was aged 22 years and his income was Rs.2003/- per month. Although the disability was determined at 20% to 25%, the loss of earning capacity was determined at 35%. The doctor who had treated him, in his deposition, stated that disability of the first respondent was between 20% to 25%.
The High Court, by reason of its impugned judgment dated 14.6.2006 determined his loss of earning capacity at 60% and the amount of compensation, on the said premise, was enhanced to Rs.2,65,865.37.
SLP (C) NO.21012 OF 2006
First respondent was hired as a casual labour for loading and unloading. The truck in which he was working collided with a stationary lorry as a result whereof he sustained injuries. He filed claim petition under the 1923 Act claiming a sum of Rs.1,50,000/- before the Commissioner. The Commissioner, by an order dated 29.4.2004 assessed his disability at 40%. However, the loss of earning capacity was taken to be 80%. An amount of Rs.2,17,169.83 was awarded as compensation.
An appeal preferred by the insurance company thereagianst has been dismissed by the High Court in terms of the impugned judgment.
SLP (C) NO.74 OF 2007
Respondent Nos. 1 and 2 were engaged for loading and unloading broken rice on casual basis in a lorry which collided with a stationary lorry resulting in sustaining injuries to respondent No.1. He filed an application before the Workmen’s Compensation Commissioner claiming an amount of Rs.3,00,000/- as compensation. His disability was assessed at 40% but loss of earning capacity was assessed at 80% by the doctor. The Commissioner, by an order dated 29.4.2004 assessed the disability of the respondents at 80% and loss of earning capacity at 100%. A sum of Rs.2,09,123/- was awarded.
By reason of the impugned judgment the High Court affirmed the award.
SLP (C) NO.2854 of 2008
Respondent No.1 on 31.5.1995 was traveling in an Ambassador car which collided with a bus as a result whereof he sustained injuries. He filed an application under Section 166 of the 1988 Act claiming a sum of Rs.18,00,000/- before the Motor Accident Claims Tribunal. He was aged about 65 years. He is a practicing advocate. By an award dated 21.2.2002, the Tribunal assessed the permanent disability suffered by him at 50%. A sum of Rs.1,95,000/- was awarded keeping in view the fact that he was unable to work for 39 months. A sum of Rs.50,000/- was also awarded towards future loss of income. In total, MAC
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