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2026 Supreme(Ori) 540

IN THE HIGH COURT OF ORISSA AT CUTTACK
B.P. ROUTRAY, J.
The Divisional Manager, National Insurance Co. Ltd. – Appellant
Versus
Sukanta Ojha and Another – Respondents
F.A.O. No. 530 of 2025
Decided On : 28-01-2026

Advocates Appeared:
For the Appellant : P.K. Mahali
For the Respondents: P.K. Mishra, G. Girigoswami

Claimants with permanent disabilities can be compensated under the Employee’s Compensation Act without formal disability certificates, supported by medical evidence, provided they hold valid driving licenses under specific conditions.

Headnote:(A) Employee’s Compensation Act, 1923 - Section 4 - Compensation awarded for injuries sustained in the course of employment - Claimant sustained permanent disability up to 50% due to accident while driving a truck - Compensation of Rs.20,02,337/- was modified to Rs.16,33,446/- based on loss of earning capacity, age, and applicable factors. (Paras 3, 10, 14)

(B) Driving License - Validity criteria for driving transport vehicles - Claimant held a valid driving license, entitling him to drive under specified conditions, thus insurer's objections regarding license validity were dismissed. (Paras 11, 12)

(C) Evidence - Importance of medical evidence - Claimant's testimony and treating doctor's evidence established the extent of injury and disability. Claimant not disqualified from compensation due to absence of formal disability certificate. (Paras 5, 9)

(D) Appeal - Modification of compensation - Court held the need to adjust compensation based on proper assessment and the claimant’s age as per established formula, reaffirming the application of the Employee’s Compensation Act and judicial precedents. (Paras 13, 14)

Facts of the case:
The claimant was injured in a truck accident on 24th November 2023, sustaining injuries resulting in 50% permanent disability. Initially awarded Rs.20,02,337/- for compensation by the Commissioner, the insurer appealed for modification.

Findings of Court:
The court modified the compensation to Rs.16,33,446/- with interest, maintaining that the claimant's disability was recognized despite the lack of a formal disability certificate from the medical board.

Issues: The main issues included the legitimacy of the claimant's driving license and whether the absence of a disability certificate invalidated the compensation claim.

Ratio Decidendi: The court ruled that the claimant’s medical evidence supported the claim of disability and reaffirmed that licensing criteria did not disqualify him from receiving compensation as he held a valid driving license.

Result: Appeal disposed of, compensation modified to Rs.16,33,446/- plus interest.

Table of Content
1. introduction of case and parties involved (Para 1 , 2)
2. details of the accident and injuries sustained (Para 3 , 5)
3. arguments regarding disability and driving license (Para 4 , 10)
4. court's observations on evidence and calculations (Para 8 , 9)
5. legal precedent on driving licenses for transport vehicles (Para 11 , 12)
6. modification of compensation amount (Para 13)
7. conclusion and orders regarding compensation payment (Para 14 , 15 , 16 , 17)

JUDGMENT :

B.P. ROUTRAY, J.

1. Heard Mr. P.K. Mahali, learned counsel for the insurer – Appellant, Mr. P.K. Mishra, learned counsel for claimant – Respondent No.1 and Mr. G. Girigoswami, learned counsel for owner – Respondent No.2.

2. Present appeal by the insurer is directed against impugned judgment dated 22nd August, 2025 of learned Commissioner for Employee’s Compensation-cum-Joint Labour Commissioner, Cuttack passed in E.C. Case No.361/2023/CUTT, wherein compensation to the tune of Rs.20,02,337/- (including interest) has been granted on account of injury sustained by the claimant arising out of and in course of his employment as driver of the truck bearing registration number OD-05-U-2712.

3. The case of the claimant is that, he while employed as driver of truck bearing registration number OD-05-U-2712 and driving from Gopalpur to Banei loaded with coal, another truck bearing registration number OD-09-A-4473 dashed it from the front coming from opposite direction resulting sustenance of injuries to the claimant. Due to such injuries he sustained multiple fracture injuries as well as other injuries and was hospitalized for a period of around four months on different spells. He further sustained permanent disability due to the accident upto 50%.

4. Mr. Mahali, learned counsel submits on behalf of the Appellant-insurer that the contention of claimant regarding sustenance of disability is not supported by any certificate granted by the competent authority. The disability certificate produced by the claimant has been granted by his private treating doctor. He further contends that the claimant did not have proper driving license to drive a heavy transport vehicle on the date of accident and so the insurer is not liable to indemnify the compensation amount.

5. The accident took place on 24th November, 2023 at around 10.30am and no dispute is raised with regard to the accident as well as sustenance of injuries by the claimant. Further, no dispute is raised with regard to the status of the claimant as driver of the truck in question at the time of accident.

6. The claimant has examined himself as P.W.1 and the treating doctor as P.W.2. In support of his injuries he has also produced the copies of medical documents marked under Ext.5, 6 and 7.

7. On the other hand, the insurer – Appellant did not adduce any evidence nor did examine any witness on its behalf. The employer has though appeared but admitted the claim of the injured regarding the accident, his employment as the driver of the vehicle as well as remuneration of the injured to the tune of Rs.15,000/- per month excluding food allowance.

8. The learned Commissioner while computing the compensation amount took the income of the injured at Rs.15,000/- per month and accepted the loss of earning to the extent of 90% taking the disability up to 50%. He applied the factor of 203.85 taking the age of the claimant as 32 years.

9. It is true that the claimant could not produce any disability certificate granted by the medical board in his favour. But non- submission of the same would not disentitle his case regarding sustenance of disability by him due to the injuries in the accident. What is contended by Mr. Mahali on behalf of the insurer that in absence of any disability certificate granted by the medical board the claim of sustenance of disability by the claimant cannot be considered, is not found to be a conceivable submission. There may be various reasons for not getting the disability certificate from the competent authorit

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