IN THE HIGH COURT OF KARNATAKA AT BENGALURU
D.K.SINGH, TARA VITASTA GANJU, JJ.
The New India Assurance Company Limited - Appellant
Vs.
Sri. Manian President, National Asphalt Products, And Construction Company (NAPC) - Respondent
Miscellaneous First Appeal No. 8192 of 2022(ECA) C/W Miscellaneous First Appeal No. 8189 of 2022 Miscellaneous First Appeal No. 8197 of 2022 Miscellaneous First Appeal No. 8246 of 2022
Decided On : 14-11-2025
| Table of Content |
|---|
| 1. workmen's compensation claims and accident details. (Para 1 , 2) |
| 2. argument regarding calculation of wages for compensation. (Para 3 , 4) |
| 3. recalculation of compensation based on wages. (Para 5 , 6) |
| 4. modification of prior tribunal award. (Para 7) |
| 5. final decision on appeal outcomes. (Para 8) |
JUDGMENT :
(PER: HON'BLE MR. JUSTICE D K SINGH)
1. All these four appeals have been filed by the New India Insurance Company against the common award dated 05.02.2022 passed by the Court of Senior Civil Judge and JMFC at Chikkanayakanahalli in ECA .No.5/2020, .No.6/2020, .No.8/2020, and .No.7/2020.
2. The deceased were workmen in National Asphalt Products and Construction Company (NAPC) (hereinafter referred to as the 'NAPC'). The workmen died when they were handling the gelatin rods within the premises of the NAPC. The dependants of the deceased had filed claim petitions under Section 10 of the Employees Compensation Act, 1923 (hereinafter referred to as 'the Act, 1923').
3. The Court has awarded the compensation under the provisions of the Act, 1923 by taking the wages at Rs.8,000/- per month. The accident was of the year 2002. The learned counsel for the appellant-Insurance Company submits that the tribunal should have taken the wages of the workmen only at Rs.4,000/- per month and not Rs.8,000/- as per the Notification issued on 31.05.2010, in exercise of the powers conferred by Section 4 (1)(b) of the Act, 1923 by the Central Government. It is not in dispute that before 2010, the wages were to be taken as Rs.4,000/- per month, however, the Tribunal has taken Rs.8,000/- per month.
4. The learned counsel appearing for the dependants of the workmen does not dispute the assertion made by the learned counsel for the appellant. As the compensation has been calculated on the basis of the wages at the rate of Rs.8,000/- per month of the deceased, we need to recalculate the compensation awarded by the Tribunal.
5. Thus, the compensation awarded by the Tribunal towards monthly wages of the deceased is reassessed at Rs.4,000/- per month instead of Rs.8,000/-. Thus, in all these four appeals we reduce the compensation awarded by the Tribunal at 50% excluding funeral expenses.
6. In view of the aforesaid, the modified compensation in each of the appeal is calculated as under:
In MFA.No.8192/2022 ( ECA .No.5/2020)
i. Monthly wage of deceased at the time of death Rs.4000/-
ii. Age of the deceased workman at the time of death 50 years.
iii. Factor According to schedule-IV of the Act is 153.09 Amount of compensation calculated as under: Rs.4000X50%X153.09 = Rs.3,06,180/-
iv. Funeral Expenses Rs.10,000/-
v. Cost of Litigation awarded as Rs.5,000/-
vi. Therefore the petitioners in ECANo.5/2020 are entitled for total compensation amount of Rs.3,21,180/-.
In MFA.No.8189/2022 ( ECA .No.6/2020)
i. Monthly wage of deceased at the time of death Rs.4,000/-.
ii. Age of the deceased workman at the time of death 30 years.
iii. Factor According to schedule-IV of the Act is 207.98 Amount of compensation calculated as under: Rs.4000X50%X207.98 = Rs.4,15,960/-
iv. Funeral ExpensesRs.10,000/-
v. Cost of Litigation awarded as Rs.5,000/-
vi. Therefore the petitioners in ECANo.6/2020 are entitled for total compensation amount of Rs.4,30,960/-.
In MFA.No.8197/2022 ( ECA .No.8/2020)
i. Monthly wage of deceased at the time of death Rs.4000/-
ii. Age of the deceased workman at the time of death 35 years.
iii. Factor According to schedule-IV of the Act is 197.06 Amount of compensation calculated as under: Rs.4000X50%X197.06=Rs.3,94,120/-
iv. Funeral Expenses Rs.10,000/-
v. Cost of Litigation awarded as Rs.5,000/-
vi. Therefore the petitioners in ECANo.8/2020 are entitled for total compensation amount of Rs.4,09,120/-.
In MFA.No.8246 OF 2022 ( ECA .No.7/2020)
i. Monthly wage of deceased at the time of death Rs.4000/.
ii. Age of the deceased workman at the time of death 50 years.
iii. Factor According to schedule-IV of the Act is 153.09 Amount of compensation calculated as under:
AI
The court recalculated compensation based on Rs.4,000 monthly wages instead of Rs.8,000 due to statutory limitations outlined in the Employees Compensation Act, 1923.
The Employees’ Compensation Act mandates compensation based on actual wages without ceiling limits imposed by notifications, ensuring dependants receive just compensation according to incurred earnin....
The Employee’s Compensation Act allows for compensation based on the actual monthly wages of an employee without a statutory cap, reflecting the legislative intent to provide fair compensation for wo....
The court held that the Commissioner must adhere to the wage cap of Rs. 8,000/- as per the Central Government notification when calculating compensation under the Employees Compensation Act.
The High Court dismissed the appeal, upholding the Commissioner's wage determination due to lack of evidence, thus affirming the procedural compliance under the Employees Compensation Act.
The central legal point established in the judgment is the assessment of the deceased's monthly wages in accordance with the provisions of the Employees Compensation Act and relevant case law.
Compensation under the Employees' Compensation Act must adhere to statutory minimum wages, ensuring accurate wage calculations for deceased employees.
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