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2025 Supreme(Mad) 3337

IN THE HIGH COURT OF JUDICATURE AT MADRAS 
S.Sounthar, J.
Kumar – Appellant
Versus
M.Deepan and ors. - Respondents
C.M.A.No.519 of 2025
Decided On : 24-02-2025


Advocates:
Advocate Appeared:
For the Appellant : Mr.C.Kulanthaivel
For the Respondent: Dr.C.Paranthaman

Employers are liable to pay statutory interest on compensation from the date of the accident if payment is delayed, and Disability Certificates from Medical Boards take precedence over private assessments.

Headnote:(A) Employee's Compensation Act, 1923 - Sections 4(2-A) and 4-A(3)(a) - Appeal against quantum of compensation - Workman injured while unloading trees, claimed compensation of Rs.10,00,000/-; Commissioner awarded Rs.47,441/- for medical expenses without interest - Court found employer liable for interest at 12% due to delay in payment. (Paras 8, 20, 21)

(B) Disability Determination - The court emphasized the importance of the Disability Certificate from the Medical Board over that of a private doctor, ruling that absence of disability negates loss of earning capacity claims. (Paras 12, 14)

(C) Interest on Compensation - The court held that statutory interest on compensation is due from the date of the accident, not from the date of quantification, reinforcing the employer's obligation to pay timely. (Paras 17, 20)

Facts of the case:
The appellant/workman, employed as a Loadman, sustained serious injuries in an accident during work and sought compensation for medical expenses and loss of earning capacity. The Commissioner awarded only medical expenses, leading to this appeal.

Findings of Court:
The court concluded that the appellant is entitled to interest at 12% on the awarded amount due to the employer's delay in payment.

Issues: The main issues included the entitlement to interest on the compensation awarded and the validity of the Disability Certificate.

Ratio Decidendi: The court ruled that the employer's liability to pay interest arises immediately after the accident, and the Medical Board's Disability Certificate supersedes that of a private doctor.

Result: Appeal partly allowed, with the Insurance Company directed to pay interest.

JUDGMENT :

S.Sounthar, J.

Not satisfied with the quantum of compensation awarded by the Employee's Compensation Commissioner, Coonoor, the appellant/claimant has come by way of this appeal.

2. Heard the arguments of learned counsel appearing for the appellant and learned counsel appearing for the 2nd respondent-Insurance Company.

3. Since the 1st respondent was set exparte before the Employee's Compensation Commissioner, notice to the 1st respondent was dispensed with.

4. It is the case of the appellant/workman, he was employed as a Loadman under 1st respondent. When he was unloading cut plam trees loaded in a Lorry bearing Registration No.TN 30 R 0538, he sustained injury and suffered fracture in his neck, fracture in left side ribs, fracture in right acetabulum and head injury. The workman was initially treated with first aid in Government Hospital, Andhiyur and then, he was taken to Trust Hospital, Erode and then to Ganga Medical Centre and Hospital (P) Ltd., Coimbatore. The lorry was insured with the 2nd respondent-Insurance Company. The injured/workman was aged about 36 years on the date of accident. It was claimed by the appellant/claimant that he was earning a sum of Rs.12,000/- per month as a Loadman under the 1st respondent. Therefore, a claim petition was filed by the appellant/claimant before the Court of the Commissioner for Workmen's Compensation (Deputy Commissioner of Labour) Salem, seeking a compensation of Rs.10,00,000/- with interest at the rate of 12%.

5. The 1st respondent was set exparte before the Employee's Compensation Commissioner and the claim was resisted only by the 2nd respondent-insurance company by filing counter. In the counter, the 2nd respondent disputed the manner of accident as averred in the claim petition. The 2nd respondent also disputed the age, income and avocation of the appellant/workman.

6. Before the Employee's Compensation Commissioner, on behalf of the appellant-workman, he was examined as PW.1. A Doctor was examined on his side as PW.2. On the side of the respondents, no witness was examined. 12 documents were marked on behalf of the appellant-workman as Exs.P1 to P12. On the side of the respondents, no documents were marked. The Disability Certificate issued by the Medical Board was marked as Ex.C1.

7. Based on the evidence available on record, the Commissioner came to the conclusion that the employer and employee relationship existed between the 1st respondent and the appellant. The Commissioner based on the Disability Certificate issued by the Medical Board-Ex.C1, came to the conclusion that the appellant-workman had not suffered any disability. Therefore, no amount was awarded under the head loss of earning capacity due to disability. The Commissioner directed the 2nd respondent/Insurance Company to pay a sum of Rs.47,441/- towards medical expenses to the workman based on the medical bills produced by him and marked as Ex.P9 series. Not satisfied with the said quantum of compensation awarded by the Commissioner, the appellant-workman has come by way of this appeal.

8. The learned counsel appearing for the appellant by taking this Court to Section 4 (2-A) read with Section 4-A Sub Clause (3)(a) of the Employee's Compensation Act , 1923 would submit that employer, who failed to pay the compensation to the injured-workman within 30 days from the date of accident is liable to pay statutory interest at the rate of 12% and the Commissioner committed an error in not awarding any interest as per the statute. The learned counsel further by taking this Court to the nature of injury mentioned in the Disability Certificate-Ex-P10 issued by the PW.2- Doctor, submitted that the appellant-workman suffered 54% of partial permanent disability and he is disabled from continuing his work as a Loadman and the said document was overlooked by the Commissioner.

9. Based on the submissions made by the learned counsel appearing for the appellant, this Court formulated the following substantial question of law

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