IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 17^TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE DR. JUSTICE K.MANMADHA RAO MISCELLANEOUS FIRST APPEAL NO.101530 OF 2018 (ECA)

BETWEEN:

THE DIVISIONAL MANAGER, NATIONAL INSURANCE CO. LTD., 2^ND FLOOR, ARIHANT PLAZA, KUSUGAL ROAD, HUBBALLI.

NOW REPRESENTED BY ITS ADMINISTRATIVE OFFICER.

…APPELLANT (BY SRI. SURESH S. GUNDI, ADVOCATE)

AND:

1. BETTAPPA S/O SHANKRAPPA @

SHANKARAGOUDA HOTTIGOUDRA, AGE:43 YEARS, OCC: NIL (LABOUR IN SATEESH GINNING FACTORY RENEBENNUR), SINCE BOTH HANDS ARE AMPUTATED HENCE, REPRESENTED BY HIS NEXT FRIEND, SMT. VISHHALA W/O BETTAPPA SHANKRAPPA @ SHANKARAGOUDA HOTTIGOUDRA, Digitally signed by AGE. 37 YEARS, OCC: HOUSEHOLD WORK, MOHA NKUMAR B SHELAR R/O JPYISARAHARALAHALLI, Locatio n: High TQ: RANEBENNUR, DIST: HAVERI-581115.

Court of Karnataka, Dharwad Bench

2. SATEESH GINNING FACTORY, KUNABEVU ROAD, RANEBENNUR, DIST: HAVERI-581115.

…RESPONDENTS (NOTICE TO R1 & R2-SERVED)

THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION

30(1) OF THE EMPLOYEES COMPENSATION ACT, PRAYING TO SET ASIDE THE JUDGMENT DATED 28.12.2017 PASSED IN ECA NO.90/2015 ON THE FILE OF THE II^ND ADDL. SENIOR CIVIL JUDGE AND ADDL. MACT, RANEBENNUR & ETC.

THIS MFA HAVING BEEN HEARD AND RESERVED FOR JUDGMENT ON 05.02.2026 AND COMING ON FOR PRONOUNCEMENT THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: THE HON'BLE DR. JUSTICE K.MANMADHA RAO

CAV JUDGMENT

The present appeal is filed by the Insurance Company under Section 30(1) of the Employees Compensation Act, 1923 (hereinafter referred to as "the EC Act" for short) to modify the judgment and award dated 28.12.2017, in ECA No.90/2015 on the file of the II Addl. Senior Civil Judge and Addl. MACT, Ranebennur (hereinafter referred to as "the Commissioner" for short).

2. The appellant-Insurance Company herein is respondent No.2, respondent No.1 herein is the claimant and respondent No.2 herein-Owner of the factory is respondent No.1 before the Commissioner.

3. For convenience, the parties herein are referred to as per their rankings before the Commissioner.

4. The petitioner instituted the claim petition on

31.10.2013 under Section 22 of the Employees’ Compensation Act, 1923 seeking compensation of Rs.30,00,000/- with interest at 18% p.a. and costs.

5. The brief facts of the case are that:-

The claimant/petitioner had been employed as a labourer for about one year in Satish Ginning Factory of respondent No.1 at Kunabevu Road, Ranebennur. On 31.10.2013 at about 4:30 p.m., during the course of employment, both his hands came into contact with the cotton bailing machine resulting in crushing and amputation of both hands. He was initially treated at OM Hospital, Ranebennur and thereafter at SPARSHA Hospital, Bengaluru for nearly two months, incurring medical expenses exceeding Rs.5,00,000/-. At the time of accident he was drawing a salary of Rs.9,000/- per month with daily batta of Rs.100/-, and he has suffered permanent disability. It is further pleaded that the factory was insured with respondent No.2-Insurance Company under the Employees’ Compensation Act, 1923, making both respondents jointly and severally liable.

6. Respondent No.1-Employer, while admitting the employer-employee relationship and the existence of insurance coverage with respondent No.2, contended that the claimant was receiving wages of Rs.9,000/- per day along with Rs.100/- daily batta and asserted that respondent No.2 alone is liable to indemnify, seeking dismissal of the claim against him. Respondent No.2, however, denied all material averments including the validity of insurance coverage, alleged non-compliance of mandatory notice by respondent No.1, failure to take safety precautions, non-maintenance of statutory registers, and characterized the compensation claim as exorbitant.

7. Based on the pleadings, oral and documentary evidence, the Commissioner framed issues and partly allowed the claim petition and awarded the compensation of Rs.16,70,000/- with interest at the rate of 12% p