Karnataka High Court
ORIENTAL INSURANCE COMPANY LIMITED - Appellant
Versus
MOHAMMED HANEEF - Respondent
Decided On : 02-24-95
M.F.A. : 1288 of 1993
Insurance Company - Workmen's Compensation - Section 4 (1) (c) (ii) of the Workmen's Compensation Act, 1923 - Summary of Acts and Sections: The court discussed the right of the Adjudicating Authority to assess the quantum of compensation independently under Section 4 (1) (c) (i) of the Workmen's Compensation Act, 1923. It also highlighted the restrictions placed by virtue of Section 149 (2) of the Motor Vehicles Act on the rights of the insurer in a proceedings claiming compensation. The court examined the effect of Section 4 (1) (c) (ii) on the exercise of power by the Commissioner vis-a-vis Section 19 of the Act, and the power of the Commissioner to assess the loss of earning capacity independently.
Fact of the Case:
The worker suffered a non-schedule injury, and the appellant challenged the right of the Adjudicating Authority to assess the compensation independently under Section 4 (1) (c) (i) of the Workmen's Compensation Act, 1923.
Finding of the Court:
The court found that the Commissioner has the independent power to settle the amount of compensation payable to a workman and has the exclusive jurisdiction to determine the claim of compensation due to the applicant.
Issues: The issues included the right of the Adjudicating Authority to assess the quantum of compensation independently, the effect of Section 4 (1) (c) (ii) on the exercise of power by the Commissioner, and the power of the Commissioner to assess the loss of earning capacity independently.
Ratio Decidendi: The court held that the Commissioner has the exclusive power to settle the compensation, including the power to determine the extent of disability, and that the assessment of the loss of earning capacity by the qualified Medical Practitioner is a factor to assess the quantum, but the Commissioner still has the power to quantify the compensation.
Final Decision: The appeal was dismissed, and there was no order as to costs.
( 1 ) THE Insurance Company has filed this appeal against the award of compensation by the Workmen's Compensation commissioner with respect to an employment injury suffered by the claimant, namely, fracture of a bone of the leg while he was unloading manure.
( 2 ) THE facts of the case are not in dispute. The worker has suffered a non-schedule injury is also not in dispute. The quantum of compensation payable has been assessed by the commissioner on the basis of assessment made by him relying ex. P-3. The contention of the appellant is that the worker has not produced any Medical Certificate estimating the loss of earning capacity suffered by the claimant, due to the accident. The question therefore raised and argued at length in the appeal is the right of the Adjudicating Authority to assess the quantum of compensation independently under Section 4 (1) (c) (i) of the workmen's Compensation Act, 1923.
( 3 ) THE Counsel for the respondent raised a preliminary objection regarding the maintainability of the appeal. According to him, the essence of the attack made by the appellant, relates to the quantum of compensation awarded and therefore, the insurer is not entitled to challenge the same by filing the appeal. He relied on the decision of this Hon'ble Court in New India assurance Company Limited, Davangere v Raja Naika and another, The reasoning therein is that, the policy of insurance is issued under the Motor Vehicles Act and Section 149 of the said Act restrict the grounds of contention of the insurer in a proceedings claiming compensation. Section 146 of the Act commands that no motor vehicle shall be plied in a public place unless it is insured. Therefore the liability of the insurer has directly arisen out of the Motor Vehicles Act. If the proceedings for compensation are initiated under the Motor Vehicles Act with respect to the liability created under the insurance policy then Section 149 (2) will step in and prevent the insurer from urging any contention other than those mentioned therein. Therefore, it cannot be said that, if proceedings are initiated under the Workmen's Compensation Act, 1923 with respect to the same liability under the very same policy, the insurer has unbriddled right to urge all contentions. The restriction placed by virtue of Section 149 (2) is on the rights of the insurer of the policy referred to under Section 146 and that restriction should apply irrespective of the forum. Hence, the preliminary objection of the learned Counsel for the respondent should be upheld.
( 4 ) BUT, according to the Counsel for the appellant, he submits that the effect of his contention in essence is "compensation or no Compensation". He submits that if his contention that the workmen's Compensation Commissioner ('commissioner' for short) has no independent power to assess the compensation of his own accord, then the award made by him cannot be sustained; the quantum of compensation according to him is only subsidiary. On the contrary, if the Commissioner has independent power so to do, then the award may have to be sustained; the quantum has to be sustained in the light of what is stated in the preceding paragraphs. We will therefore proceed to examine the contention of the appellant keeping this in mind.
( 5 ) THE order impugned herein was passed subsequent to the amendment of Section 4 of the Act in 1984. The accident also took place in 1992. The claim made by the claimant is under section 4 (1) (c) (ii) of the Act. The section reads thus: " (ii) in the case of an injury not specified in Schedule I, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified Medical practitioner) permanently caused by the injury; explanation I. Where more injuries than one are caused by the same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.