M/S Royal Sundaram Vs Sri Sachidananda Shetty — Karnataka HC (2025) — LawSathi Research

M/S Royal Sundaram Vs Sri Sachidananda Shetty — Karnataka HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Appeal allowed in part: compensation payable to Respondent No. 1 reduced from the Tribunal's Rs.8,97,190/- to Rs.2,61,961/- (211743 + 50218) with interest at 12% p.a. from the date of accident till realization; Respondent No. 1 permitted to withdraw the amount along with accrued interest; the trial Court directed to refund the excess deposited amount to the insurance company.

Issue for consideration

Whether the Tribunal erred in computing the employees' compensation award without applying the assessed 25% permanent physical disability to the loss-of-earning-capacity component, i.e., directing deposit of the entire Rs.8,46,972/- instead of 25% thereof. +1 more

Court's answer

The Tribunal committed an error by not applying the assessed 25% permanent physical disability to the right lower limb while calculating compensation, instead granting Rs.8,97,190/- with 12% interest.

Ratio / Principle

The Tribunal's computation being erroneous, the loss-of-earning-capacity component is correctly calculated as 4200 X 201.66 X 25% = 211743 (monthly wages 4200, multiplier 201.66 for age 40, applied to the 25% disability).

Key takeaways

Respondent No. 1 (the injured workman) is entitled to total compensation of Rs.2,61,961/-, comprising Rs.2,11,743/- plus the undisputed Rs.50,218/-, with interest at 12% p.a. from the date of accident till realization.ratio¶¶36
Since the insurance company has already deposited the entire compensation awarded by the Tribunal, the trial Court is directed to refund the excess amount to the insurance company.ratio¶¶41

Detailed headnote1 paragraphs

MFA No. 8652 of 2019 (ECA), High Court of Karnataka (P Sree Sudha J., oral judgment dated 24.09.2025) — Insurer's appeal under S.30(1) Employees Compensation Act against award dated 13.06.2019 in ECA No.4/2014 (Senior Civil Judge & Commissioner for Employees Compensation, Karkala) awarding Rs.8,97,190/- with 12% p.a. interest from 20.07.2011 — Tribunal had recorded 25% permanent physical disability to the right lower limb (per P.W.2), age 40, applicable multiplier 201.66, yet paid the full Rs.8,46,972/- without applying the 25% — Held: computation erroneous; loss-of-earnings correctly worked out as 4200 X 201.66 X 25% = Rs.2,11,743; adding the undisputed Rs.50,218/-, Respondent No. 1 entitled to Rs.2,61,961/- with 12% p.a. interest from the date of accident — appeal allowed in part; since the insurer had already deposited the entire Tribunal award, trial Court directed to refund the excess to the insurance company. Respondent Nos. 1 and 2 were ex-parte despite service.

- 1 NC: 2025:KHC:38501 MFA No. 8652 of 2019

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 24^TH DAY OF SEPTEMBER, 2025

BEFORE

THE HON'BLE MRS. JUSTICE P SREE SUDHA MISCELLANEOUS FIRST APPEAL NO.8652 OF 2019(ECA)

BETWEEN:

M/S ROYAL SUNDARAM ALLIANCE GENERAL INSURANCE CO. LTD. SUNDARAM TOWERS NO.46, WHITES ROAD ROYAPETTAH CHENNAI - 600 014 REPRESENTED BY ITS MANANGER-LEGAL

…APPELLANT

(BY SRI. RAVI S SAMPRATHI, ADVOCATE)

AND:

Digitally signed by LAKSHMINARAYANA MURTHY RAJASHRI Location: HIGH COURT OF KARNATAKA

SRI SACHIDANANDA SHETTY S/O M.VITTALA SHETTY AGED ABOUT 35 YEARS RESIDING AT MOODUBETTU IDU VILLAGE, KARKALA TALUK

JEEVANDAS ADYANTHAYA S/O N.S. ADYANTHAYA MAJOR IN AGE RESIDING AT VISHAL MOTORS PULKERI JUNDTION KARKALA TALUK.

…RESPONDENTS

(R1 & R2 - SERVED)

THIS MFA IS FILED UNDER SECTION 30(1) OF EMPLOYEES COMPENSATION ACT AGAINST THE JUDGMENT AND AWARD DATED 13.06.2019, PASSED IN ECA. NO. 4/2014, ON THE FILE OF THE SENIOR CIVIL JUDGE AND

- 2 NC: 2025:KHC:38501 MFA No. 8652 of 2019

HC-KAR

COMMISSIONER FOR EMPLOYEES COMPENSATION, KARKALA, AWARDING COMPENSATION OF RS.8,97,190/- WITH INTEREST AT THE RATE OF 12% P.A., FROM 20.07.2011 TILL REALIZATION.

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

CORAM: HON'BLE MRS. JUSTICE P SREE SUDHA

ORAL JUDGMENT

Learned counsel for appellant is present. Inspite of

service of notice respondent Nos. 1 and 2 did not turn up and they are placed ex-parte.

The injured workman filed a claim petition claiming compensation of Rs.28,25,000/-. The Tribunal considering the entire evidence on record granted compensation of Rs.8,97,190/- with interest at the rate of 12% p.a. from the date of accident till realization. Aggrieved by the said order, this appeal is preferred by the insurance company.

Learned counsel for appellant mainly contended

that the Court below assessed the disability at 25%. Instead of granting 25% of Rs.8,46,972/-, the Tribunal directed the insurance - company to deposit the entire amount erroneously.

- 3 NC: 2025:KHC:38501 MFA No. 8652 of 2019

HC-KAR

He further submitted that evidence of P.W.2 is not considered properly and requested for modification of the order.

A perusal of the record shows that the petitioner examined P.W.2 and he assessed 25% permanent physical disability to the right lower limb of the petitioner. While calculating the compensation said 25% is not deducted and compensation of Rs.8,97,190/- with interest at the rate of 12% is granted. The Tribunal further observed that the petitioner was aged 40 years and the relevant multiplier applicable would be 201.66 and granted compensation of Rs.8,46,972. This is

erroneous. In fact, it is to be calculated as :

4200 X 201.66 X 25% = 211743

Compensation of Rs.50,218/- granted by the Tribunal is not disputed by the learned counsel for appellant.

Accordingly, appeal is allowed in part. Respondent No. 1 herein is entitled for total compensation of Rs.2,61,961/(211743 + 50218) with interest at the rate of 12% p.a. from the date of accident till realization. Respondent No. 1 is permitted to withdraw the amount along with the interest accrued on it.

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NC: 2025:KHC:38501 MFA No. 8652 of 2019

HC-KAR

Learned counsel for appellant submitted that the insurance company has already deposited the entire

compensation awarded by the Tribunal. If that is so, the trial Court is directed to refund the excess amount to the insurance

company.

Sd/(P SREE SUDHA) JUDGE

LRS

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