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2020 Supreme(Kar) 1101

IN THE HIGH COURT OF KARNATAKA AT BENGALURU (KALABURAGI BENCH)
Hanchate Sanjeevkumar, J.
Gangappa - Appellant
Versus
Shambhashivarao - Respondent
Miscellaneous First Appeal No. 201163 of 2015
Decided On : 17-06-2020

Advocates Appeared:
Sanjeev Patil, Advocate, Babu H Metagudda, Advocate

The main legal point established in the judgment is the determination of the appropriate income for calculating compensation under the Employees Compensation Act, 1923, and the liability of the employer to pay compensation from the date of the accident/incident.

Headnote:

Employees Compensation Act - Appeal against judgment and award - Section 30(1) of the Employees Compensation Act, 1923 - The court considered the income of the deceased at the rate of Rs.260/- per day and awarded compensation accordingly. The court also held that the employer is liable to pay compensation from the date of the accident/incident.

Fact of the Case:

The deceased, an employee, fell and sustained fatal injuries while working at a construction site. The legal heirs filed a petition seeking compensation, which was awarded by the Trial Court. The appeal was filed for seeking enhancement of compensation.

Finding of the Court:

The court found that the Trial Court had erred in not considering the income at the rate of Rs.260/- per day and awarded compensation based on this rate. The court also held that the employer is liable to pay compensation from the date of the accident/incident.

Issues: The main issue was the determination of the appropriate income of the deceased for calculating compensation.

Ratio Decidendi: The court held that the income of the deceased should be considered at the rate of Rs.260/- per day, taking into account the nature of the job and the cost of living in the city. The court also relied on Section 4A(3)(a) of the Employee's Compensation Act, 1923, and previous Supreme Court judgments to support the award of compensation from the date of the accident/incident.

Final Decision: The appeal was allowed, and the appellants were awarded compensation based on the determined income rate, with 12% interest from the date of the accident/incident. The court also held that the employer is liable for payment of penalty in case of default of payment of compensation.

JUDGMENT

Hanchate Sanjeevkumar, J. - Even though the case is at the stage of admission but at the consent of the learned counsels for both the parties this appeal is taken up for consideration for hearing and disposal finally.

2. The present appeal is preferred under Section 30(1) of the Employees Compensation Act, 1923 challenging the judgment and award passed in ECA No.138/2014 dated 07.03.2015 by the Senior Civil Judge (Commissioner for Workmen Compensation), Yadgiri.

3. The brief facts of the case are as follows ;-

The deceased Bannamma was employee under respondents No.1 and 2 as a coolie, was working under the construction site of the respondents No.1 and 2 and on 17.12.2012 at 9.00 a.m., when the deceased was water curing the walls at 5th floor of the building construction which was being carried out by respondents No.1 and 2 situated at Talacavuary Layout, Basava Nagar, Bengaluru, the deceased fell down from the floor and sustained fatal injuries and died on the spot.

4. The legal heirs of the deceased preferred the petition before the Court of Senior Civil Judge (Commissioner for Workmen Compensation), Yadgiri.

5. The husband of the deceased is examined as PW.1 and got marked documents as Exs.P1 to P7. The respondents have not lead any evidence either oral or documentary before the Trial Court.

6. The Court of Senior Civil Judge has considered the case and after appreciating the evidences on record, taking into consideration the age of the deceased was 35 years at the time of incident and accordingly the relevant factor is 197.06 and taken into consideration the monthly income of the deceased at Rs.5,000/- per month and accordingly awarded compensation of Rs.4,92,650/- towards loss of dependency and granted compensation of Rs.5,000/- towards funeral expenses. Thus, totally awarded compensation of Rs.4,97,650/- with interest at the rate of 6% per annum from the date of incident till realization of amount by fastening the liability on respondent No.2 as he is employer of the deceased.

7. Being aggrieved by the said judgment and award the legal heirs of the deceased preferred the present appeal for seeking enhancement of compensation on the ground that the Trial Court had taken the income at Rs.5,000/- per month which is meager but ought to have taken the income of Rs.7,800/- per month as Rs.260/- per day, but has considered the income on lower side above stated and also the interest awarded at the rate of 6% per annum but interest ought to have been awarded at the rate of 12% per annum. Therefore, on these grounds raised, the present appeal is preferred.

8. Upon considering the appeal the following substantial question of law would arise for my consideration is

"Whether the Court of Senior Civil Judge has erred in not taking the income at the rate of Rs.260/- per day as it was prevailing rate as on the date of the incident for making livelihood considering the cost of living in Bengaluru city; thus committed error in not noticing judicial notice of fact and evidence of cost of living ?"

9. In the present case the factum of the relationship of the deceased and respondent No.2 being employee and employer is not disputed. The age of the deceased as on the date of incident as 35 years is also not disputed fact.

10. The learned counsel for the appellant argued that the Trial Court has taken into consideration the monthly income of Rs.5,000/- as notional income which is on meager side and therefore the monthly income of the deceased if considered at the rate of Rs.260/- per day that would be justified in the present case and interest to be awarded is at the rate of 12% as per Section 4A(3)(a) of Employee's Compensation Act, 1923.

11. On the other hand the learned counsel for respondents argued and fairly submitted that if income of Rs.6,500/- per month is considered that would be a fair amount. Therefore, requested to consider the monthly income of Rs.6,500/- per month.

12. Admittedly the deceased was working in Bengaluru City

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