IN THE HIGH COURT OF ALLAHABAD
SALIL KUMAR RAI, J.
The Oriental Insurance Co. Ltd. - Appellant
Versus
Arvind Kumar Pandey and Another - Respondents
First Appeal From Order No. 2860 of 2005
Decided On : 22-07-2022
Workmen's Compensation Act - Employee's Compensation - Section 30 - Case No.137/W.C.A/2004 - Summary: The court discussed the assessment of loss of earning capacity without the assistance of a qualified medical practitioner as provided under Section 4(1)(b) and 4(1)(c) (i)(ii) of the Workmen's Compensation Act, 1923. The court found that the Commissioner erred in awarding compensation for loss of earning capacity without proper assessment by a qualified medical practitioner. The judgment and award dated 22.09.2005 passed by the Commissioner was set aside.
Fact of the Case:
The claimant alleged that he suffered injuries in an accident arising out of his employment and claimed compensation under the Act, 1923. The Commissioner awarded compensation to the claimant based on the disability certificate issued by the Chief Medical Officer.
Finding of the Court:
The court found that the Commissioner erred in awarding compensation for loss of earning capacity without proper assessment by a qualified medical practitioner.
Issues: Assessment of loss of earning capacity without the assistance of a qualified medical practitioner as provided under Section 4(1)(b) and 4(1)(c) (i)(ii) of the Workmen's Compensation Act, 1923.
Ratio Decidendi: The Commissioner could not have awarded compensation for loss of earning capacity without assessment by a qualified medical practitioner.
Final Decision: The award dated 22.09.2005 passed by the Workmen's Compensation Commissioner was set aside.
JUDGMENT :
1. The present appeal under Section 30 of the Workmen's Compensation Act, 1923 (re-named as the Employee’s Compensation Act, 1923 and hereinafter referred to as Act, 1923) has been filed by the Insurance Company against the judgment and award dated 22.09.2005 passed by the Workmen's Compensation Commissioner in Workmen Compensation Case No.137/W.C.A/2004 (Arvind Kumar Pandey Versus Rajesh Rastogi & another).
2. The claimant is the opposite party no.1 in the present appeal and the employer is the opposite party no.2.
3. The facts of the case are that the claimant/opposite party no.1 instituted Case No.137 of 2004 alleging that he was employed as driver by the opposite party no.2 and suffered injuries in an accident which arose out of and in the course of his employment with opposite party no.2 while he was driving the Jeep (bearing Registration No. U.P-24/A/1399) owned by the opposite party no.2. It was stated in the claim petition that the right leg and the right hand of the applicant was fractured and his right eye was also injured as a result of which the applicant was disabled. It was further stated in the claim petition that the claimant was employed on a salary of Rs.4000/-per month and was additionally paid Rs.50/-per day as food allowance. On the aforesaid pleas, the claimant claimed compensation under the Act, 1923.
4. The employer and the Insurance Company/appellant contested the claim petition and filed their written statements. In his written statement, the employer admitted the accident and the salary of the claimant as well as the allowance as stated by the claimant. In his written statement, the employer also pleaded that the claimant had a valid driving licence and therefore, the Insurance Company was liable to pay compensation.
5. In Case No.137 of 2004, the Commissioner, Workmen’s Compensation framed five issues. Issue no.1 was as to whether the claimant was employed as driver by the opposite party no.2 and whether the claimant suffered injuries in the accident which arose out and in the course of his employment and also as to the loss in the earning capacity of the claimant. Issue no.2 was as to whether the vehicle i.e., Jeep (bearing registration no. U.P -24/A/1399) was insured with the appellant. Issue no.3 was regarding the allowances paid to the claimant by opposite party no. 2 and the age of the claimant. Issue No.4 was as to whether at the time of accident, the claimant had a valid driving licence. Issue no.5 was as to whether the claimant was entitled to any compensation and the amount of compensation payable to the claimant.
6. The Commissioner decided Issue No.1 in favour of the claimant. The Commissioner held that the claimant was employed with opposite party no. 2 and was injured in an accident which arose out of and in the course of employment of the claimant with opposite party no.2. Issue no. 2 was decided in favour of the insured and the Commissioner has held that the vehicle was insured with the appellant. On issue no.3, the Commissioner held that the claimant had not been able to prove his salary as claimed in the claim-petition and therefore, compensation, was to be determined on the basis of minimum wages payable at the relevant time, i.e., Rs.2966/-per month. The Commissioner also held the age of the claimant to be 34 years on the basis of his date of birth as recorded in the driving licence. On Issue no.4, the Commissioner, held that at the time of accident, the claimant had a valid driving licence. So far as Issue no.5 is concerned, the Commissioner, relying on the disability certificate issued by the Chief Medical Officer, held that because of the accident, the claimant had suffered 65% disability and determined the loss of earning capacity of the claimant as 100% because of the physical disability suffered by him. On the aforesaid reasoning, the Commissioner awarded a compensation of Rs.3,54,852/-to the claimant. Hence, the present appeal under Section 30 of the Act.
7. The appeal
National Insurance Co. Ltd. Versus Mubasir Ahmed and another
The court emphasized the requirement for assessment of loss of earning capacity by a qualified medical practitioner as provided under Section 4(1)(c)(ii) of the Workmen's Compensation Act, 1923.
The Commissioner must rely on medical assessments for determining loss of earning capacity in workmen's compensation claims, especially for non-schedule injuries.
The assessment of disability in compensation cases must rely on credible medical evidence, and arbitrary increases in disability percentages are not permissible.
The insurer under the Workmen’s Compensation Act cannot be held liable from the date of the accident if the claim is filed later, with compensation reflecting permanent functional disability assessed....
Workmen's Compensation - Fracture injuries - There is no doubt that the award amount shall carry interest at 12% per annum w.e.f. 30 days of accident till the date of realization.
Proper assessment by a qualified medical practitioner is essential for disability and loss of earning capacity under the Workmen’s Compensation Act.
The main legal point established is that the assessment of loss of earning capacity should be proportionate to the nature of the disability, as per Section 4 of the Workmen's Compensation Act, 1923.
The assessment of loss of earning capacity by a medical practitioner is an aid to the Commissioner and cannot be the sole determinative factor for the award of compensation.
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