IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28^TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE UMESH M ADIGA MISCELLANEOUS FIRST APPEAL NO.2480 OF 2023 BETWEEN:

THE MANAGER UNITED INDIA INSURANCE CO. LTD.

BRANCH OFFICE, FIRST FLOOR CRESCENT COURT, K. M. ROAD CHIKKAMAGALURU-577 101 REP. BY ITS DIVISIONAL MANAGER SRI SHESHA NAIK …APPELLANT (BY SRI ANUP SEETHARAM RAO, ADVOCATE)

AND:

1. SMT. GIRIJA Digitally signed AGED ABOUT 49 YEARS by W/O. LATE GOPALA ANNAPURNA G Location: HIGH 2. KUM. SAVITHA COURT OF AGED ABOUT 27 YEAS KARNATAKA D/O. LATE GOPALA

3. SRI SHARATH G.

AGED ABOUTN 26 YEARS S/O. LATE GOPALA RESPONDENT NOS.1 TO 3 ARE R/AT GOWRIKERE, MUTHINAPURA VILLAGE EMMEKHAN, MALLENAHALLI POST-577 131 CHIKKAMAGALURU TALUK PRESENTLY R/AT GUNI GADDE VILLAGE, ANOOR POST, CHIKKAMAGALURU TALUK.

4. SMT. SEETHAMMA AGED ABOUT 73 YEARS W/O. LATE K. P. RAGU RESIDENT AT GOWRIKERE MUTHINAPURA VILLAGE EMMEKHAN, MALLENAHALLI POST CHIKKAMAGALURU TALUK.

SRI SHASHIDHARA C. V.

AGED ABOUT 51 YEARS S/O. VIRUPAKSHA COFFEE PLANTER PROP: M/S. EMMEKHAN ESTATE.

SINCE DECEASED REP. BY HIS LRS

5. SMT. USHA M. T.

AGED ABOUT 44 YEARS W/O. LATE SHASHIDHARA C. V.

6. KUM. CHINMAYI @ CHAITHRA I. S.

AGED ABOUT 27 YEARS D/O. LATE SHASHIDHARA C. V.

7. SRI CHETHAN I. S. AGED ABOUT 23 YEARS S/O. LATE SHASHIDHARA C. V.

RESPONDENT NOS.5 TO 7 ARE R/AT NO.302, R. S. MUTT ROAD BASAVANAHALLI EXTENSION CHIKKAMAGALURU-577 101

8. SMT. H. M. PREMA AGED ABOUT 71 YEARS W/O. VIRUPAKSHA COFFEE PLANTER, EMMEKHAN ESTATE MUTHINAPURA VILLAGE MALLENAHALLI POST-577 131 CHIKKAMAGALURU TALUK NOW R/AT RAGHAVENDRA SWAMY TEMPLE ROAD BASAVANAHALLI EXTENSION CHIKKAMAGALURU-577 101 …RESPONDENTS (BY SRI A. S. GIRISH, ADVOCATE FOR R-1 TO R-4;

R-5, R-6, R-7 AND R-8 ARE SERVED AND UNREPRESENTED)

THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 30(1) OF EMPLOYEES COMPENSATION ACT, 1923 AGAINST THE JUDGMENT AND AWARD DATED 10.1.2023 PASSED IN E.C.A NO.23/2020 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND C.J.M., CHIKKAMGALURU, AWARDING COMPENSATION OF RS.11,53,175/- WITH INTEREST AT THE RATE OF 9 PERCENT P.A. FROM THE DATE OF THIS JUDGMENT TILL REALIZATION OF ENTIRE AMOUNT.

THIS MISCELLANEOUS FIRST APPEAL IS COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE UMESH M ADIGA

ORAL JUDGMENT

This appeal is filed by the insurer being aggrieved by the judgment and decree dated 10.01.2023 passed by the Principal Senior Civil Judge, CJM and Commissioner, Chikkamagaluru in ECA.No.23/2020(for short 'Commissioner').

2. This appeal is admitted to consider the following substantial questions:

i. Whether the Employees Commissioner erred in directing the insurer to pay the entire amount of compensation though the insurer calculated the premium on the basis of wages declared by the insured at Rs.8,000/- per employee?

ii. Whether the Commissioner erred in directing the insurer to pay the interest on the amount for the delayed payment of compensation though there was no such liability on the insurer?

iii. What order?

3. Heard the arguments of both the sides.

4. Most of the facts are not in dispute; therefore, there is no need to discuss them in detail. The insurer challenges its liability to pay the entire amount of compensation awarded by the Tribunal on the ground that, as per Ex.R1 (which is not mentioned in the annexure of the impugned award), respondent No.3 had declared the monthly wages of the employees as Rs.8,000/- and taken insurance of 18 employees, i.e., temporary workmen. On this basis, the insurer contends that it is liable to pay compensation calculated at Rs. 8,000/- per month. However, the Commissioner determined the income of the deceased as Rs. 15,000/- per month and awarded compensation accordingly. Therefore, the insurer submits that it is not liable to pay the entire amount of compensation, but only a portion thereof, i.e., Rs. 6,20,600/-, as calculated in the appeal memo.

5. The second contention of the learned counsel for the appellant is