IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K.Manmadha Rao, J.
Branch Manager - Appellant
Versus
Kasineni Srinivasulu - Respondent
Civil Miscellaneous Appeal No. 234 of 2023
Decided On : 31-10-2023
Workmen's Compensation Act - Compensation Claim - Sec. 30 - Summary of Acts and Sections: Workmen's Compensation Act, 1923 (Sec. 30, Sec. 4(A) 3(b), Sec. 4(1)(b), Sec. 4(c), Sec. 2) - The court discussed the assessment of loss of earning capacity, interpretation of disability certificates, and the calculation of compensation under the Workmen's Compensation Act.
Fact of the Case:
The applicant, a cleaner, was injured in a road accident and claimed compensation under the Workmen's Compensation Act. The Commissioner awarded compensation based on a 100% loss of earning capacity, despite the Medical Board assessing the loss at 55%.
Finding of the Court:
The court found that the Commissioner's decision to equate the loss of earning capacity to 100% was untenable and allowed the appeal in part, directing the applicant to withdraw an amount based on 55% disability and loss of earnings.
Issues: The main issue was the assessment of the applicant's loss of earning capacity and the interpretation of the disability certificate.
Ratio Decidendi: The court held that the Commissioner's decision to award compensation based on 100% loss of earning capacity was incorrect, and the compensation was adjusted based on the actual assessed disability of 55%.
Final Decision: The Civil Miscellaneous Appeal was partly allowed, and the applicant was directed to withdraw an amount based on 55% disability and loss of earnings. The remaining ratio taken by the Commissioner for calculation of compensation was not interfered with.
JUDGMENT
1. The present Civil Miscellaneous Appeal is filed under Sec. 30 of the Workmen's Compensation Act, 1923 (for brevity "the Act") aggrieved by the order dtd. 15/3/2005 passed in W.C.No.52 of 2004 by the Assistant Commissioner of Labour, Cuddapah (for short "the Commissioner").
2. The Appellant herein is the Respondent No.2/ Opposite Party No.2 and the respondent herein is the applicant/claimant in W.C No.52 of 2004. For sake of convenience, the parties are hereinafter referred to, as they are arrayed before the Commissioner.
3. The applicant has filed the impugned W.C.No.52 of 2004 before the Commissioner seeking for a direction to Opposite Parties No.1 and 2 under Workmen's Compensation Act, 1923 claiming compensation for Rs.4, 00, 000.00 with interest at 15% p.a.
4. Brief facts of the case are that on 15/9/2002 the applicant, who is working as a cleaner, along with driver left Cuddapah in a lorry bearing No.AP 04-T-8449 with the load of Sugar to go to Chennai. After passing Ramapuram, the driver stopped the said lorry and the applicant, got down from the lorry and while he was checking air to the tyres in the course and out of his employment one RTC Bus bearing No.AP 10-Z8109 of Palamaneru depot came from Cuddapha with high speed without hooting horn with a rash and negligent manner hit the rear side of the lorry and also applicant. As a result of which, he sustained fracture on his legs received injuries all over the body. Thereafter he was shifted to Govt. Hospital, Rayachoty for treatment. The driver of the Opposite Party No.1 preferred a complaint and it was registered in Crime No.87/2002 of Ramapuram P.S. Later, the applicant was shifted to Govt. Hospital, Cuddapah on the same day i.e., 15/9/2002 and he was patient upto 11/11/2002 and there he has undergone surgery for fracture shaft of left femur thigh and steel plates were inserted to the said fracture. He has spent nearly Rs.1, 00, 000.00 for medicines and treatment. The applicant was earning Rs.3, 000.00 per month wages at the time of accident. Due to said accident the applicant became permanently disabled and to that effect District Medical Board, Cuddapah has issued Disability Certificate at 55% of loss of earning capacity. Hence the applicant requested the Opposite parties to pay compensation since the said vehicle was insured with the Opposite Party No.2 and the policy was in force at the time of accident, and the driver was also having valid driving license. Therefore, both the Opposite Parties are jointly and severely liable to pay the compensation to the applicants.
5. Despite service of notice on the Opposite party No.1, neither attended nor filed the counter and hence, he was set ex parte before the Tribunal. The Opposite Party No.2 filed counter and denied all the allegations made in the petition and also denied for not adding the APSRTC as necessary party, the age, wage and employment of applicant, the permanent disability the entitlement of interest and compensation and thereby requested to dismiss the petition.
6. During course of trial, on behalf of the applicants, AW.1 and AW.2 were examined and Ex.A1 to Ex.A11 were marked.
7. The learned Commissioner, after hearing on both sides passed an order holding that both the Opposite Parties are jointly and severally liable to despot an amount of Rs.2, 75, 624.00 compensation besides Stamp duty of Rs.551.00 with interest at 12% p.a from the date of accident till its realization by means of D.D drawn in favour of Commissioner for Workmen Compensation and Deputy Commissioner of Labour, Kurnool drawn on State Bank of India, Kurnool, within 30 days from the date of receipt of the order and also held that if they have failed to deposit the awarded amount within the stipulated time they have to pay penalty under Sec. 4(A) 3(b) of the Workmen's Compensation Act 1923.
8. Heard Sri P. Ramanjaneyulu, learned Counsel appearing for the appellant and none represented for the respondents.
9. During hearing, learned
The central legal point established in the judgment is the importance of accurately assessing loss of earning capacity and disability in determining compensation under the Workmen's Compensation Act.
The main legal point established is that the calculation of compensation for disability and entitlement to interest under the Workmen's Compensation Act is based on the doctor's evidence of disabilit....
The central legal point established in the judgment is the requirement for reasoned orders and the consideration of functional disability, particularly in professions with specific physical demands.
Functional disability, not just physical impairment percentage, determines loss of earning capacity for compensation under Workmen's Compensation Act.
The court emphasized the requirement for assessment of loss of earning capacity by a qualified medical practitioner as provided under Section 4(1)(c)(ii) of the Workmen's Compensation Act, 1923.
The assessment of disability in compensation cases must rely on credible medical evidence, and arbitrary increases in disability percentages are not permissible.
The central legal point established in the judgment is the interpretation and application of Sec. 3 of the Workmen's Compensation Act, emphasizing the essential ingredients for a successful compensat....
Total disablement is determined by the incapacity to perform any work relevant to the worker’s employment, resulting in 100% loss of earning capacity.
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