- 1 - HC-KAR NC: 2025:KHC-K:2811 MFA No. 201018 of 2019 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 3RD DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE RAVI V HOSMANI MISCL. FIRST APPEAL NO.201018 OF 2019 (WC) BETWEEN: SANJEEV KUMAR S/O MANIK AGE: 37 YEARS, OCC: LABOR, R/O: VILLAGE YADLAPUR, TQ: & DIST: BIDAR. …APPELLANT (BY SRI K.M.GHATE, ADVOCATE) AND: 1. SRI AKASH S/O MADHAVRAO, AGE: MAJOR, OCC: GOVT. SERVANT, R/O: RAGHVENDRA COLONY, BIDAR – 585 401. 2. SRI. JAGANATH S/O MOTIRAON AGE: MAJOR, OCC: CONTRACTOR, R/O: BHIMNAGAR, BIDAR – 585 401. …RESPONDENTS (R1 AND R2 SERVED) Digitally signed by RAMESH MATHAPATI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC-K:2811 MFA No. 201018 of 2019 THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 30(1) OF THE EMPLOYEES COMPENSATION ACT, PAYING TO ALLOW THIS APPEAL AND AWARD THE ADDITIONAL ENHANCEMENT COMPENSATION OF RS.10,00,000/- ALONG WITH INTEREST @ 12% P.A. BY MODIFYING THE JUDGMENT AND AWARD OF THE COMMISSIONER OF EMPLOYEES COMPENSATION, BIDAR AND PRINCIPAL SENIOR CIVIL JUDGE AND C.J.M., BIDAR DATED 15.09.2017 IN E.C.A.NO.09 OF 2016 IN THE INTEREST OF JUSTICE AND EQUITY. THIS MISCELLANEOUS FIRST APPEAL COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE RAVI V HOSMANI ORAL JUDGMENT Challenging judgment and award dated 15.09.2017 passed by Commissioner for Employees Compensation, Bidar and Principal Senior Civil Judge and CJM, Bidar, in ECA no.9/2016, this appeal is filed. 2. Sri K.M.Ghate, learned counsel for appellant/ claimant submitted that appellant/claimant was employed as labour by respondent no.2-Contractor to carry out work of buildings, on daily wage of Rs.600/-. While on work at - 3 - HC-KAR NC: 2025:KHC-K:2811 MFA No. 201018 of 2019 residential site belonging to respondent no.1 on 08.09.2015, claimant came in contact with uncovered electric live wire, sustained severe burns and fell down. Despite taking treatment at Government Hospital, Bidar and later at Gandhi Hospital, Hyderabad, he did not recover. Due to development of gangrene, both his hands were amputated upto elbow joint. Thus he lost earning capacity and claim petition was filed under Section 10 of Employees’ Compensation Act. 3. On service of notice, only respondent no.1 contested claim petition. Respondent no.2 remained exparte. Based on pleadings, Tribunal framed issues and recorded evidence. Claimant examined himself as PW.1 and got marked documents as Exs.P1 to P7. Respondent no.1 examined himself as RW.1. 4. On consideration, Tribunal held relationship of employee and employer between claimant and respondents was established. Even occurrence of incident during course of and out of employment was also established. 5. It determined age of workman as 34 years, considered monthly income as Rs.15,000/-, adopted relevant - 4 - HC-KAR NC: 2025:KHC-K:2811 MFA No. 201018 of 2019 factor of 199.40 and permanent physical disability to extent of 100% and awarded Rs.14,95,500/- as loss of earning capacity. Said amount was ordered to be paid with interest at 7.50% p.a. from 30 days after date of incident and in default, rate of interest was fixed @ 12% p.a. Being dissatisfied with same, claimant was in appeal. 6. Sole ground urged was that in a claim petition under provisions of Employees Compensation Act, Tribunal was not justified in awarding interest @ 7.50% p.a. and awarding interest from 30 days after date of incident was contrary to decision of Hon’ble Supreme Court in Shobha and others v. The Chairman, Vithalrao Shinde Sahakari Sakhar Karkhana Limited and others1 wherein it is held that interest under Workmen's Compensation Act would be payable at 12% per annum from date of incident. 7. Learned counsel submitted that substantial questions of law framed by this Court in its order dated 01.02.2024 would not be pressed. Therefore, appeal was heard on substantial question of law. 1 2022 SCC OnLine SC 308 - 5 - HC-KAR NC: 2025:KHC-K:2811 MFA No. 201018 of 2019 “Whether award of interest by Tribunal was contrary to decision of Hon’ble Supreme Court in Shobha’s case (supra) and therefore calls for interference? 8. Hon’ble Supreme Court in Shobha’s case (supra) has after referring to various provisions of Employees Compensation Act, insofar as award of interest has held claimant would be entitled for interest from date of accident at 12% p.a. 9. In view of above, substantial question of law would require to be answered in affirmative. Consequently, following: ORDER a. Appeal is allowed in part. b. Award passed by Tribunal is modified to extent of increasing rate of interest from 7.50% p.a. to 12% p.a. payable from date of incident i.e., from 08.09.2015 till deposit. Sd/- (RAVI V HOSMANI) JUDGE NB,MSR List No.: 1 Sl No.: 64 Ct;Vk