Gouranna S/O Yallappa Vs B Jayaram Reddy S/O B.S.M.Ganganna — Karnataka HC (2025) — LawSathi Research

Gouranna S/O Yallappa Vs B Jayaram Reddy S/O B.S.M.Ganganna — Karnataka HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

M.F.A.Nos.23466/2013 and 24701/2013 allowed in part; M.F.A.Nos.23467/2013 and 24700/2013 dismissed; judgment and award dated 21.05.2013 in W.C.N.F.Nos.2/2009 and 3/2009 modified — compensation in W.C.N.F.No.2/2009 reduced from Rs.1,44,577/- to Rs.64,256/- and in W.C.N.F.No.3/2009 enhanced from Rs.46,487/- to Rs.53,128/-; insurance company to deposit the compensation with accrued interest within two months; amount in deposit to be transmitted to the Commissioner; office to refund any excess to the insurance company.

Issue for consideration

Whether the Labour Officer and Commissioner for Workmen's Compensation was justified in assessing the loss of earning capacity of the petitioner in W.C.N.F.No.2/2009 (driver) at 30% by ignoring item No.14, Part-II of Schedule-I of the Workmen's Compensation Act, 1923, which prescribes 30% for amputation of all the toes of both feet proximal to the proximal inter-phalangeal joint, where the workman suffered fracture and not amputation. +2 more

Court's answer

The Commissioner having ignored item No.14, Part-II of Schedule-I, the loss of earning capacity assessed in W.C.N.F.No.2/2009 at 30% is on the higher side; this Court re-assessed it at 15%, since the workman suffered only injuries and a fracture and not amputation of the toes.

Ratio / Principle

Under the Workmen's Compensation Act, 1923, the income of the petitioners for an accident of 2008 is to be considered at Rs.4,000/- p.m.; the Commissioner's adoption of Rs.4,500/- p.m. in W.C.N.F.No.2/2009 (higher side) and Rs.3,500/- p.m. in W.C.N.F.No.3/2009 (lower side) was corrected, and the income in both petitions was re-fixed at Rs.4,000/- p.m.

Key takeaways

The Commissioner's assessment of the disability of the petitioner in W.C.N.F.No.3/2009 at 10% is just and proper and calls for no interference.ratio¶119
The substantial questions of law framed in MFA No.23466/2013 are answered in the negative.ratio¶123
The substantial questions of law framed in MFA No.23467/2013 are answered in the affirmative.ratio

Detailed headnote1 paragraphs

Workmen's Compensation — Cross-appeals under S.30(1) of the Workmen's Compensation Act, 1923 against common award dated 21.05.2013 of the Labour Officer and Commissioner for Workmen's Compensation, Sub-Division-I, Ballari, in W.C.N.F.Nos.2/2009 (driver, Gouranna) and 3/2009 (cleaner, M. Hanumanthappa), employed under lorry owner B. Jayaram Reddy (KA-16/C-5323), insured with Oriental Insurance Co.; lorry toppled near Hanagal on 08.11.2008 while carrying materials from Bengaluru to Ballari. Held: (i) for an accident of 2008, notional income under the Act is Rs.4,000/- p.m.; Commissioner's figures of Rs.4,500/- and Rs.3,500/- corrected accordingly; (ii) driver's loss of earning capacity reduced from 30% to 15% — he suffered fracture, not amputation of all toes of both feet, and the Commissioner had ignored Item 14, Part-II, Schedule-I, which fixes 30% only for such amputation; (iii) cleaner's 10% disability upheld as just and proper; compensation recomputed at Rs.64,256/- (reduced from Rs.1,44,577/-) and Rs.53,128/- (enhanced from Rs.46,487/-). Substantial questions in MFA No.23466/2013 answered in the negative and in MFA No.23467/2013 in the affirmative; insurer's appeal and the cleaner's enhancement appeal allowed in part, insurer's other appeal and driver's enhancement appeal dismissed; award modified; deposit with accrued interest within two months; excess, if any, to be refunded.

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NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 HC-KAR AND 1 OTHER

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

DATED THIS THE 12^TH DAY OF AUGUST, 2025 BEFORE

THE HON'BLE MR. JUSTICE ASHOK S. KINAGI

MISCELLANEOUS FIRST APPEAL NO. 23466 OF 2013 (WC-) C/W

MISCELLANEOUS FIRST APPEAL NO. 23467 OF 2013 MISCELLANEOUS FIRST APPEAL NO. 24700 OF 2013 MISCELLANEOUS FIRST APPEAL NO. 24701 OF 2013

IN MFA NO.23466 OF 2013 BETWEEN:

THE DIVISIONAL MANAGER, THE ORIENTAL INSURANCE COMPANY LTD., BALLARI, REPRESENTED BY THE ORIENTAL INSURANCE COMPANY LTD., REGIONAL OFFICE, SUMANGALA COMPLEX, 2^ND FLOOR, LAMINGTON ROAD, HUBLI -580020

&APPELLANT

(BY SRI. S K KAYAKAMATH, ADV)

AND:

MOHANKUMAR B SHELAR

Digitally signed by MOHANKUMAR B SHELAR Date: 2025.08.22 13:01:14 +0530

SRI. GOURANNA S/O YALLAPPA AGE: 29 YEARS, OCC: EX-DRIVER, R/O. RAMPUR VILLAGE, TQ. MOLAKALMURU, NOW AT RUPANAGUDI ROAD, MILLERPETH, BALLARI.

SRI. B. JAYARAM REDDY S/O. B.S.M. GANGANNA, AGE: MAJOR, OCC: OWNER OF THE LORRY BEARING NO.KA-16/C-5323, R/O. KONDAPUR VILLAGE, J.B. HALLI, POST, TQ: MOLAKALMURU, DIST. CHITRADURGA.

&RESPONDENTS

(BY SRI. Y LAKSHMIKANT REDDY, ADV FOR R1, NOTICE TO R2 IS DISPENSED WITH)

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HC-KAR

THIS MFA IS FILED U/SEC.30(1) OF WC ACT, 1923, AGAINST THE ORDER DTD:21.05.2013 PASSED IN WC/NF 2/2009 ON THE FILE OF THE LABOUR OFFICER AND COMMISSIONER FOR WORKMENS COMPENSATION, SUB-DIVISION-I, BALLARI, AWARDING THE COMPENSATION OF RS.1,44,577/- WITH INTEREST AT THE RATE OF 12% P.A., FROM THE DATE OF PETITION AND SHALL BE DEPOSITED WITHIN 30 DAYS FROM THE DATE OF THE ORDER.

THIS APPEAL, COMING ON FOR FINAL HEARING,

IN MFA NO.23467 OF 2013 BETWEEN:

THE DIVISIONAL MANAGER THE ORIENTAL INSURANCE COMPANY LTD., BALLARI, REP BY THE ORIENTAL INSURANCE COMPANY LTD., REGIONAL OFFICE, SUMANGALA COMPLEX, 2^ND FLOOR, LAMINGTON ROAD, HUBLI-580020.

&APPELLANT

(BY SRI. S.K. KAYAKAMATH, ADV)

AND:

SRI. M. HANUMANTHAPPA S/O MURALI AGE: 26 YEARS, OCC: EX-CLEANER, R/O. A.K.COLONY RAMPUR VILLAGE, TQ: MOLAKALMURU, NOW AT TALUR ROAD, BALLARI.

SRI. B. JAYARAM REDDY S/O. B.S.M. GANGANNA AGE: MAJOR, OCC: OWNER OF THE LORRY BEARING NO.KA-16/C-5323, R/O. KONDAPUR VILLAGE, J.B.HALLI POST, TQ: MOLAKALMURU, DIST: CHITRADURGA.

&RESPONDENTS

(BY SRI. Y. LAKSHMIKANT REDDY, ADV FOR R1, NOTICE TO R2 IS SERVED)

THIS MFA FILED U/SEC.30(1) OF WC ACT, 1923, AGAINST THE ORDER DTD:21.05.2013 PASSED IN WC/NF 3/2009 ON THE FILE OF THE LABOUR OFFICER AND COMMISSIONER FOR WORKMENS COMPENSATION, SUB-DIVISION-I, BALLARI, AWARDING THE COMPENSATION OF RS.46,487/- WITH INTEREST AT THE RATE OF

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12% P.A. FROM THE DATE OF PETITION AND SHALL BE DEPOSITED WITHIN 30 DAYS FROM THE DATE OF THE ORDER.

THIS APPEAL, COMING ON FOR FINAL HEARING,

IN MFA NO.24700 OF 2013 BETWEEN:

SRI. GOURANNA S/O YALLAPPA AGE: 29 YEARS, OCC: EX-DRIVER, R/O. RAMPURA, TQ. MOLAKALMOORU NOW R/AT: ROOPANGUDI ROAD, MILLER PET, BALLARI.

&APPELLANT

(BY SRI. Y. LAKSHMIKANT REDDY, ADV)

AND:

SRI. B. JAYARAM REDDY S/O B.S.M. GANGANNA OCC: LORRY OWNER BEARING REG. NO.KA-16/C-5323 R/O. KONDAPUR VILLAGE, J.B.HALLI POLST, MOLAKALMOORU TALUK, CHITRADURGA DISTRICT.

THE DIVISIONAL MANAGER, ORIENTAL INSURANCE COMPANY LTD., BALLARI.

&RESPONDENTS

(BY SRI. S.K. KAYAKAMATH, ADV FOR R2 NOTICE TO R1 IS DISPENSED WITH)

THIS MFA IS FILED U/SEC.30(1) OF WC ACT, 1923, AGAINST THE ORDER DATED 21.05.2013 PASSED IN W.C. NO.2/2009 ON THE FILE OF THE LABOUR OFFICER AND COMMISSIONER FOR WORKMENS COMPENSATION, SUB DIVISION-I, BALLARI PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

THIS APPEAL, COMING ON FOR FINAL HEARING,

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HC-KAR

IN MFA NO.24701 OF 2013 BETWEEN:

SRI. M. HANUMANTHAPPA S/O MURALI, AGED: 25 YEARS, OCC: EX-CLEANER, R/O. M.K.COLONY, RAMPUR, MOLAKALMURU TALUK, PRESENTLY AT TALUR ROAD, BALLARI.

&APPELLANT

(BY SRI. Y. LAKSHMIKANT REDDY, ADV)

AND:

SRI. B. JAYARAM REDDY S/O B.S.M.GANGANNA, OCC: LORRY OWNER BEARING REG. NO.KA-16/C-5323, R/O. KONDAPUR VILLAGE, J.B. HALLI POST,

TQ. MOLAKALMOORU, DIST. CHITRADURGA.

THE DIVISIONAL MANAGER, ORIENTAL INSURANCE CO. LTD., BALLARI.

&RESPONDENT

(BY SRI. S.K. KAYAKAMATH, ADV FOR R2; NOTICE TO R1 IS DISPENSED WITH)

THIS MFA IS FILED U/SEC.30(1) OF WC ACT, 1923, AGAINST THE ORDER DATED 21.05.2013 PASSED IN W.C. NO.3/2009 ON THE FILE OF THE LABOUR OFFICER AND COMMISSIONER FOR WORKMENS COMPENSATION, SUB DIVISION-I, BALLARI PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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

CORAM: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI

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HC-KAR

ORAL JUDGMENT

(PER: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI)

These appeals arise out of the common award dated 21.05.2013, passed by the Labour Officer and the Commissioner for Workmen9s Compensation, Sub-DivisionI, Ballari, (hereinafter referred to as 8Commissioner9, for short) in W.C.N.F.Nos.2/2009 and 3/2009.

Brief facts, leading rise to the filing of these appeals, are as follows:

That the petitioners were working as driver and cleaner under the respondent No.1-employer in a lorry bearing No.KA-16/C-5323. On 07.11.2008, the petitioners loaded the materials at Bengaluru at the instance of respondent No.1-employer, and on the next day 08.11.2008, they were proceeding to Ballari to unload the material. When they reached near Hanagal, the Driver of

the lorry lost the control over the lorry and the lorry toppled down. As a result, both the petitioners sustained

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a grievous injuries. As such, they filed the petitions seeking a compensation. It is contended that the accident occurred during the course of employment, and sought a compensation from the insurance company.

Respondent No.1-employer filed a statement of objections and admitted that the petitioners were working under him, and that the accident occurred during the course of employment.

Respondent No.2-insurance company filed a statement of objections denying the petition9s averments and prays for dismissal of the claim petition.

To prove their case, the petitioners examined themselves as PW-1 and PW-2, and marked 11 documents as Exs.P-1 to P-11. The Insurance company has not examined any of its officials; however marked the insurance policy as Ex.R-1.

The Commissioner, based on the evidence led

by the petitioners, allowed the petitions in part vide award

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dated 21.05.2013 and awarded a sum of Rs.1,44,577/- to

the petitioner in W.C.N.F.No.2/2009 and a sum of Rs.46,487/- to the petitioner in W.C.N.F.No.3/2009 with interest at 12% p.a. after one month from the date of accident till its realization. The Insurance Company was directed to pay the compensation to the petitioners. The petitioners aggrieved by the common award filed the appeals in MFA No.24700/2013 and MFA No.24701/2013 and the Insurance Company, being aggrieved by the some common award filed the appeals in MFA No.23466/2013 and MFAA No.23467/2013.

Heard the learned counsel for the petitioners

and the learned counsel for the insurance company.

Learned counsel for insurance company submits

that the Commissioner has committed an error in assessing the loss of earning capacity of the petitioner in W.C.N.F.No.2/2009 at 30%, by ignoring item No.14 at

part II of Schedule I of the Workmen9s Compensation Act,

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1923 which discloses that for loss of all toes of both feet proximal to proximal inter-phalangeal joint, is to be assessed at 30%. Hence, he submits that the disability assessed by the Commissioner to the petitioner in W.C.N.F.No.2/2009 is on the higher side, as the said petitioner has suffered only a fracture, and not an amputation. He submits that the Commissioner has also committed an error in assessing the loss of earning capacity of the petitioner in W.C.N.F.No.3/2009 at 10%. Hence, on these grounds, he prays to allow the appeals filed by the insurance company, and to dismiss the appeals filed by the petitioners.

Per contra, learned counsel for petitioners submits that the Commissioner has committed an error in not considering the income of the petitioners at Rs.5,000/p.m. and Rs.4,000/- p.m, respectively. Hence, on this ground, prays to allow the appeals filed by the petitioners, and to dismiss the appeals, filed by the insurance company.

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HC-KAR

Perused the records, and considered the

submissions of the learned counsel for the parties.

This Court, vide order dated 03.02.2022, admitted the appeals in M.F.A.No.23466/2013, and 23467/2013 to consider the following substantial questions of law:

IN M.F.A.No.23466/2013

i. Whether the Labour Officer and Commissioner for workmen compensation is justified in assessing the loss of earning capacity @ 30% by ignoring the item No.14, Part-II of Schedule-I of Workmen9s Compensation Act, which discloses that the loss of earning capacity for amputation of all the toes of both feet proximal inter phalnge joint is 30%?

ii. Whether the Labour Officer and Commissioner for Workmen Compensation is justified in assessing the loss of earning capacity @ 30% without considering the ratio laid down by the Full Bench of Karnataka High Court in the case of S.S. PATIL Vs. A. B. Bavihal and others reported in ILR Karnataka Page 193 ?

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HC-KAR

IN M.F.A.No.23467/2013

i. Whether the Labour Officer and Commissioner for workmen compensation is justified in assessing the loss of earning capacity @ 10% by ignoring the Section 4(1)(c) of the W.C. Act?

ii. Whether the Labour Officer and Commissioner for Workmen Compensation is justified in assessing the loss of earning capacity @ 10% without considering the ratio laid down by the Full Bench of Karnataka High Court in the case of S.S. PATIL Vs. A. B. Bavihal and others reported in ILR Karnataka Page 193 ?

There is no dispute that the petitioners

sustained injuries, and the accident occurred during the course of employment.

As per the Workmen9s Compensation Act, 1923

the income of the petitioners is to be considered at Rs.4,000/- p.m. for the accident of 2008, whereas the Commissioner has considered the income of the petitioner in W.C.N.F.No.2/2009 at Rs.4,500/- p.m., which is on the higher side and has considered the income of the

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petitioner in W.C.N.F.No.3/2009 at Rs.3,500/- p.m. which

is on the lower side. Accordingly, the income of the petitioners in both the petitions is re-considered at Rs.4,000/- p.m.

Ex.P-7 is the disability certificate about the petitioner in W.C.N.F.No.2/2009 and Ex.P-11 is the disability certificate about the petitioner in W.C.N.F.No.3/2009. Both certificates are issued by Dr. Lakshmi Narayana. K., Ballari, who has opined that the petitioner in W.C.N.F.No.2/2009 has suffered disability to the extent of 30% and the petitioner in W.C.N.F.No.3/2009 has suffered disability to the extent of 15%.

The Commissioner has ignored item No.14, part II of Schedule I of the Workmen9s Compensation Act, 1923. Hence, the loss of earning capacity assessed by the Commissioner in W.C.N.F.No.2/2009 at 30% is on the higher side. From the perusal of the records produced by

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the petitioners, and considering the evidence of the doctor, this Court re-assesses the loss of earning capacity of the petitioner in W.C.N.F.No.2/2009 at 15%, as he has

suffered only injuries, and a fracture and not amputation of the toes. Accordingly, the loss of earning capacity is recalculated as under:

Rs.4,000 x 60% = 2,400/-

Rs.2,400 x 178.49 x 15% = 64,256/-

The Commissioner has assessed the disability of the petitioner in W.C.N.F.No.3/2009 at 10% which is just and proper, and do not call for any interference. Accordingly, the loss of earning capacity is re-calculated as under:

Rs.4,000 x 60% = 2,400/-

Rs.2,400 x 221.37 x 10% = 53,128/-

In view of the above discussion, substantial

questions of law framed in MFA No.23466/2013 are answered in negative and substantial question of law

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framed in MFA No.23467/2013 are answered in

affirmative.

18. Accordingly, I proceed to pass the following

order:

ORDER

(i) M.F.A.No.23466/2013 and M.F.A.No.24701/2013 are allowed in part.

(ii) M.F.A.No.23467/2013 and M.F.A.No.24700/2013 are hereby dismissed.

(iii) The judgment and award dated 21.05.2013 passed by the Labour Officer and Commissioner for Workmen9s Compensation, Sub-Division-I, Ballari, in W.C.N.F.Nos.2/2009 and 3/2009 are hereby modified.

(iv) The compensation awarded by the Commissioner to the petitioner in W.C.N.F.No.2/2009 is reduced from Rs.1,44,577/- to Rs.64,256/-.

(v) The compensation awarded by the Commissioner to the petitioner in

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HC-KAR

W.C.N.F.No.3/2009 is enhanced from Rs.46,487/- to Rs.53,128/-.

(vi) The insurance company is directed to deposit the compensation amount with accrued interest within a period of two months from the date of receipt of a copy of this order.

(vii) The amount in deposit be transmitted to the Commissioner.

(viii) The office is directed to refund the excess amount, if any, to the insurance company.

Sd/(ASHOK S. KINAGI) JUDGE

NAA CT: BSB List No.: 1 Sl No.: 3

Procedural history

How this case reached the court

AI extract

Order under challenge
Common award dated 21.05.2013 in W.C.N.F.Nos.2/2009 and 3/2009 allowing the claim petitions in part and awarding compensation of Rs.1,44,577/- (driver) and Rs.46,487/- (cleaner) with interest at 12% p.a., with the Insurance Company directed to pay.¶69
Labour Officer and Commissioner for Workmen's Compensation, Sub-Division-I, Ballari · 2013-05-21
Prior proceeding
On 07.11.2008 the workmen loaded materials at Bengaluru at the instance of the employer; on 08.11.2008, while proceeding to Ballari, the lorry (KA-16/C-5323) toppled near Hanagal and both workmen sustained grievous injuries.¶72
Prior proceeding
Claim petitions filed seeking compensation on the contention that the accident occurred during the course of employment.¶74
Prior proceeding
Employer (Respondent No.1) filed statement of objections admitting the workmen worked under him and that the accident occurred during the course of employment.¶75
Prior proceeding
Insurance company (Respondent No.2) filed statement of objections denying the petition's averments and praying for dismissal of the claim petitions.¶76
Prior proceeding
Trial evidence: petitioners examined themselves as PW-1 and PW-2 and marked 11 documents (Exs.P-1 to P-11); insurance company examined no official but marked the policy as Ex.R-1.¶77
Prior proceeding
Commissioner allowed the petitions in part vide award dated 21.05.2013.¶79
Prior proceeding
Award carried interest at 12% p.a. after one month from the date of accident till realization, with the Insurance Company directed to pay the compensation.¶82
Prior proceeding
Claimants, aggrieved by the common award, filed enhancement appeals MFA No.24700/2013 and MFA No.24701/2013.¶82
Prior proceeding
Insurance Company, aggrieved by the same common award, filed appeals MFA No.23466/2013 and MFA No.23467/2013 (source prints 'MFAA No.23467/2013').¶82
Prior proceeding
By order dated 03.02.2022 this Court admitted the insurer's appeals M.F.A.Nos.23466/2013 and 23467/2013 and framed substantial questions of law.¶95