Order on Board

1. The present appeal is preferred under Section 30 of the Employee’s Compensation Act, 1923 by the claimants, assailing the award dated 26.04.2023 passed by the learned Commissioner, Employee’s Compensation, Labour Court, Ambikapur, District Surguja (C.G.) in Civil Suit No. 23/E.C. Act/2021 (non-fatal), seeking enhancement of the compensation amount awarded.

2. The present appeal is admitted on the following substantial question of law:-

Whether the learned Commissioner, Employees’ Compensation, Labour Court, Ambikapur, was justified in assessing the salary of the claimant/ injured under the Gazette notification dated 31.05.2010 issued under Section 4 (1) of the Employees’ Compensation Act, 1923 though there is a specific acceptance by the respondent No. 1/ employer and evidence on record that the claimant was receiving salary of Rs. 23,000/- at the time fo the accident.

3. With the consent of the parties, the appeal is heard finally.

4. Brief facts of the case are that, the applicant filed an application under Section 22 of the Employees’ Compensation Act, 1923 (henceforth, referred to as ‘Act of 1923’), seeking compensation on account of injuries sustained by him in a road accident dated 25.12.2019 stating inter alia that, on the said date at about 7:00 PM, the applicant was working under the employment of respondent No. 1 in connection with road construction work on the Ambikapur–Bilaspur road near Lahpatra Nala. During the course of such employment, an unknown truck, driven in a rash and negligent manner, hit the applicant and ran over his legs, resulting in grievous injuries. The applicant was immediately taken to Jeevan Jyoti Hospital, where he was treated from 25.12.2019 to 26.12.2019, and thereafter, on 27.12.2019, he was referred to Kalda Hospital, Raipur for further treatment. Owing to the severe crush injuries, both his legs had to be amputated to save his life, rendering him permanently disabled and incapable of performing any work. On these grounds, the applicant has claimed compensation of Rs. 30,00,000/- under various heads. It is further averred that at the time of the accident, the applicant was working as a skilled labourer and was earning Rs. 23,000/- per month.

5. Respondent No. 1 has filed his written statement and admitted that the applicant was working under his employment at the relevant time. It is further stated that immediately after the incident, the applicant was taken to the hospital and all medical expenses were borne by him. Respondent No. 1 has also pleaded that the establishment was duly insured with the Insurance Company in respect of any accident involving its employees, and therefore, the entire liability, if any, is to be indemnified and borne by the Insurance Company.

6. Insurance company/ respondent No. 2 has also filed its written statement denying the averments made in the claim application and contended that the applicant sustained injuries due to an accident caused by an unknown truck, and therefore, the applicant himself is liable and no liability can be fastened upon it. It is further stated that although respondent No. 1 had obtained an insurance policy from the respondent in respect of its employees, the same covered only unskilled labourers and was valid for the relevant period. The respondent No.2 has also contended that as per Gazette Notification No. 1258(E) dated 31.05.2010 issued under Section 4(1) of the Employees’ Compensation Act, 1923, the notional monthly income of a labourer is Rs. 8,000/-, and therefore, the claim amount sought by the applicant is highly excessive and exaggerated and on these grounds, respondent No. 2 has prayed for dismissal of the claim application.

7. On the basis of pleading of the parties, learned Labour Court framed as many as 5 issues, recorded evidence of both the parties and vide impugned award, awarded compensation amount of Rs. 8,60,160/- and directed respondents to pay aforesaid amount within a period of 01 month befo