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2020 Supreme(Kar) 944

IN THE HIGH COURT OF KARNATAKA AT BENGALURU (KALABURAGI BENCH)
Hanchate Sanjeevkumar, J.
Bajaj Allianz General Insurance Company Limited - Appellant
Versus
Bibi Fatima - Respondent
Miscellaneous First Appeal No. 201043 of 2017, 202000 of 2017
Decided On : 29-06-2020

Advocates Appeared:
C.S. Kalaburagi, Advocate, Ganesh Naik, Advocate, Ganesh, Advocate, A.S. Rawoor, Advocate, C.S. Kalburagi, Advocate

The main legal point established in the judgment is the correct assessment of the deceased's monthly wage and the entitlement of the claimants to interest at the rate of 12% per annum from the date of the accident, as per the provisions of the Employee's Compensation Act, 1923 and relevant case law.

Headnote:

Compensation - Employee's Compensation Act, 1923 - Section 4A(3)(a) - Central Government Notification No.S.O.1258(E), dated 31.05.2010 - Jaya Biswal case (2016) AIR SC 956 - Pratap Narain Singh Deo vs. Srinivas Sabata and another, (1976) 1 SCC 289 - Saberabibi Yakubbhai Shaikh and others vs. National Insurance Company Limited and others, (2014) 2 SCC 298

Fact of the Case:

The deceased, a driver, met with an accident while driving a tipper lorry and succumbed to his injuries. The claimants filed a petition for compensation, which was awarded by the Senior Civil Judge. The Insurance Company appealed for reduction of compensation, while the claimants appealed for enhancement.

Finding of the Court:

The court found that the monthly wage of the deceased was correctly assessed at Rs.10,000, considering his job as a driver of a heavy goods vehicle. The court dismissed the Insurance Company's appeal and allowed the claimants' appeal in part, awarding interest at the rate of 12% per annum from the date of the accident.

Issues: 1. Assessment of the deceased's monthly wage. 2. Award of interest at the rate of 9% per annum from the date of petition.

Ratio Decidendi: The court held that the assessment of the deceased's monthly wage at Rs.10,000 was justified based on his job as a driver of a heavy goods vehicle. The court also ruled that the claimants were entitled to interest at the rate of 12% per annum from the date of the accident, in accordance with Section 4A(3)(a) of the Employee's Compensation Act, 1923 and relevant case law.

Final Decision: The Insurance Company's appeal was dismissed, and the claimants' appeal was allowed in part, with the court directing the Insurance Company to pay compensation to the claimants after deducting any amount already paid.

JUDGMENT

Hanchate Sanjeevkumar, J. - Even though the appeals are at the stage of admission but at the consent of the learned counsels for both the parties, these appeals are taken up for final hearing and for disposal.

2. The MFA No.201043/2017 is preferred by the Insurance Company on the ground for reduction of compensation amount. The MFA No.202000/2017 is preferred by the claimants for enhancement of compensation.

3. The rank of the parties are as referred to before the learned Senior Civil Jude and Additional MACT, Shorapur (for short the learned 'Senior Civil Judge') for convenience while referring in this case.

4. The brief facts of the case are that, the deceased was working as a driver in the tipper lorry vehicle bearing Reg.No.KA-28-C-0659 under the employment of respondent No.1 who is the owner of the said vehicle and was insured with respondent No.2 and on 21.02.2015 at the instruction of his employer the respondent No.1, the deceased has taken the Tipper vehicle bearing Reg.No.KA-28-C-0659, going to Kalaburagi and when he reached Firozabad Darga on NH-218 at about 11.30 p.m., the said vehicle was met with an accident with another lorry bearing Reg.No.GJ- 1-CT-5596, which was coming from opposite direction and in the said accident the deceased was driving the Tipper lorry sustained grievous injuries and succumbed to the injuries on the spot.

5. The claimant No.1 is the wife and claimants No.2 and 3 are the father and mother of the deceased have filed the claim petition before the learned Senior Civil Judge for grant of compensation.

6. The claimant No.1 being the wife of deceased had given evidence as PW.1 and produced documents as Exs.P1 to P9. The respondents have not placed any documentary evidence or oral evidence before the learned Senior Civil Judge.

7. After assessing and evaluating the evidences on record, the learned Senior Civil Judge had awarded compensation of Rs.10,60,000/- with interest at the rate of 9% per annum from the date of petition till realisation of amount by considering the fact that the age of the deceased was 28 years and taking monthly income at Rs.10,000/- and accordingly awarded compensation.

8. The respondent No.2 Insurance Company preferred MFA No.201043/2017 for reducing the compensation amount on the ground that the learned Senior Civil Judge has held the monthly wage of the deceased at Rs.10,000/- is on higher side but as per the Central Government Notification No.S.O.1258(E), dated 31.05.2010 issued as per sub-section 1-B of section 4 of the Employee's Compensation Act, 1923, the monthly wage has to be taken at Rs.8,000/- only and accordingly the quantum of compensation is to be redetermined and accordingly compensation be awarded.

9. The MFA No.202000/2017 is preferred by the claimants for seeking enhancement of compensation on the ground that the interest awarded by the learned Senior Civil Judge is contrary to the Act, but ought to have been awarded at the rate of 12% per annum from the date of accident. Therefore, submitted in this regard that the learned Senior Civil Judge has committed an error. Hence, the appeal.

10. Heard the arguments from both sides, the substantial questions of law that would arise for consideration are -

    1. Whether the learned Senior Civil Judge has erred in taking the monthly wage at Rs.10,000/- considering the factor that the deceased was driving the tipper lorry and according to the prevailing rate of wage as on the date of accident ?

      2. Whether the learned Senior Civil Judge has committed error in awarding interest at the rate of 9% per annum from the date of petition is contrary to the provision of Section 4A(3)(a) of the Employee's Compensation Act, 1923 ?

      11. The learned counsel for the appellant in MFA No.201043/2017 contended that the learned Senior Civil Judge has taken the income of the deceased at Rs.10,000/- per month is on higher side and contrary to the notification issued by the Central Government stated supra and as per this notificatio

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