SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Guj) 1662

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M. PRACHCHHAK, J.
The National Insurance Co. Ltd. - Appellant
Versus
Ramsevak Gurudayal Sakvar (Tiwari) and Another - Respondents
First Appeal No. 5799 of 2008
Decided On : 19-06-2025

Advocates:
Advocate Appeared:
For the Appellant : Lilu K. Bhaya

The court emphasized the necessity for accurate disability assessment under the Workmen Compensation Act, clarifying that the liability for interest rests solely with the employer, not the insurance provider.

Headnote:(A) Workmen Compensation Act, 1923 - Sections 3, 4, 5, 8, and 17 - Compensation for workplace injury - Appellant challenged the Commissioner’s decision on disability assessment, awarding 100% instead of 15% - Focus on liability for interest and calculation of wages - Court found errors in assessing disability and clarified insurance company liability. (Paras 1-10)

(B) Disability Assessment - The importance of correct assessment in light of medical evidence and nature of injury emphasized; reasonable adjustments to compensation necessary. (Paras 5.1, 5.4)

(C) Interest and Penalty - Liability for interest exclusively on employer, not insurance company. (Paras 5.2, 6.14)

Facts of the case:
The insurance company appealed against the Commissioner’s award granting a total compensation of Rs.3,62,988 along with penalties to the victim of a workplace injury, highlighting errors in disability assessment and compensation calculation.

Findings of Court:
The court modified the award, correcting the disability percentage to 50% and clarifying interest responsibility lies with the employer, thus altering the liability assigned to the insurance provider.

Issues: Whether the Commissioner erred in determining the disability percentage and the corresponding liability for interest.

Ratio Decidendi: The court underscored that accurate disability assessment is paramount and stressed that while the insurance company may indemnify, it is the employer who holds primary responsibility for interest payments.

Result: Appeal allowed in part; decision modified regarding disability assessment and liability for interest.

Table of Content
1. appeal filed under the workmen compensation act. (Para 1)
2. claimant's disability percentage contested. (Para 2)
3. counsel's arguments on errors by commissioner. (Para 3 , 4)
4. court's analysis on disability and interest. (Para 5)
5. supreme court decisions cited on the act's provisions. (Para 6)
6. court's view on evidence regarding disability. (Para 7)
7. court considers penalty based on smallness. (Para 8 , 9)
8. appeal allowed in part, direction to registry. (Para 10)

JUDGMENT :

HEMANT M. PRACHCHHAK, J.

1. Present appeal is filed by the appellant - insurance company under Section 30 of the Workmen Compensation Act, 1923 (hereinafter be referred to as “the Act”) challenging the impugned judgment and order dated 04.05.2007 passed by the learned Workmen Compensation Commissioner, Labour Court, Surat in Workmen Compensation (Non-Fatal) Case No.18 of 2003 whereby the learned Commissioner has allowed the application filed by the claimant and awarded the compensation of Rs.3,62,988.00 along with the penalty and interest.

2. Being aggrieved and dissatisfied with the impugned judgment and order of the learned Commissioner, the present first appeal is filed by the appellant – insurance company on the grounds that learned Commissioner has committed an error in assessing the percentage of disability though in the medical certificate the disability was shown at 15%, whereas, the learned Commissioner has considered the disability at 100% and also committed an error in awarding penalty.

3. Heard Ms.Lilu Bhaya, learned counsel appearing for the appellant – insurance company. Though served, the respondent – original claimant has chosen not to appear before the Court. Even the respondent was served by substitution of service despite of the same he is not remained present before the Court and, therefore, the publication in the gazette and the proposed substantial questions of law has been supplied by the learned counsel appearing for the appellant.

4. Ms.Bhaya, learned counsel appearing for the appellant has submitted the same facts which are narrated in the memo of appeal and has submitted that the learned Commissioner has exceeded his jurisdiction which is not vested with him and committed an error in assessing the disability at 100%, whereas, the disability was shown in the medical certificate at 15%. She has submitted that the learned Commissioner has considered the income of the claimant on higher side, though as per the evidence produced before the learned Commissioner the workman was receiving Rs.3500/- per month, who serving as driver sustained injury below the left leg knee and fracture on right leg knee. She has submitted that the learned Commissioner has committed serious error of law and facts in awarding 6% interest and the liability was fastened upon the appellant instead of original employer. She has submitted that the net amount of Rs.1,81,494/- as compensation is required to be paid.

4.1 Ms.Bhaya, learned counsel has emphasized upon said provision and submitted that the learned Commissioner has awarded 6% interest and liability was fastened upon the insurance company which is not just and proper. Ms.Bhaya, learned counsel has urged to allow the appeal and to quash and set aside the impugned judgment and order passed by the learned Commissioner.

5. The contention raised by Ms.Bhaya, learned counsel with regard to disability received by the claimant is concerned, in the opinion of this Court, the same is required to be considered in light of the provisions of law as it is mainly relied upon the medical certificate issued by Krupa Orthopedic Hospital wherein the disability was assessed by the doctor at 15%. In my view, while assessing the disability, the factum is required to be considered not only in the nature of injury but cause of such injury. So far as the contention with regard to disability is concerned, I am not agreement with the disability considered by the learned Commissioner.

5.2 The contention with regard

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top