- 1 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE PRADEEP SINGH YERUR MISCELLANEOUS FIRST APPEAL NO.1456 OF 2022 (ECA) C/W MISCELLANEOUS FIRST APPEAL NO.5548 OF 2021 (ECA) IN MFA.NO.1456/2022: BETWEEN: 1. MAHADEVAMMA W/O.LATE NINGARAJU SINCE DEAD BY LRS. 2. SHARATH KUMAR S/O.LATE NINGARAJU AGED ABOUT 28 YEARS R/AT CHIKKA HUNSURU DARGA MAIN ROAD HUNSUR POST HUNSUR-571 105 3. BHARATH KUMAR S/O.LATE NINGARAJU AGED ABOUT 27 YEARS R/AT CHIKKA HUNSURU DARGA MAIN ROAD HUNSUR POST HUNSUR-571 105 …APPELLANTS (BY SRI ROHITH SWAMY, ADVOCATE FOR A2 & A-3; A-2 & A-3 ARE TREATED AS LRS. OF DECEASED A-1 VIDE ORDER DATED 22.08.2024) AND: 1. THE OFFICER INCHARGE CENTRAL TOBBACCO RESEARCH INSTITUTE Digitally signed by GAVRIBIDANUR SUBRAMANYA GUPTA SREENATH Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 2. SRI MAHADEVAPPA MANAGER CENTRAL TOBACCO RESEARCH INSTITUTE 3. SRI SRINIVAS MANAGER CENTRAL TOBACCO RESEARCH INSTITUTE R-1 TO R-3 ARE WORKING AT CTRI RESEARCH STATION CENTRAL TOBACCO RESEARCH INSTITTUE CHIKKA HUNSURU HUNSURU-571 105 4. SRI V.KRISHNA MURTHY DIRECTOR CENTRAL TOBACCO RESEARCH INSTITUTE RAJAMANDRI ANDRA PRADESH 5. THE DIRECTOR CENTRAL TOBACCO RESEARCH INSTITUTE RAJAMANDRI ANDRA PRADESH 6. THE DIRECTOR GENERAL INDIAN COUNCIL FOR AGRICULTURE RESEARCH AND SECRETARY DEPARTMENT OF AGRICULTURE RESEARCH AND EDUCATION KRISHIBHAVAN NEW DELHI-110 001 …RESPONDENTS (BY SRI B.A.CHANDRASHEKAR, ADVOCATE FOR R-1; NOTICE TO R-2 TO R-6 IS DISPENSED V/O.DATED 18.04.2023) - 3 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 30(1) OF THE EMPLOYEE'S COMPENSATION ACT, 1923, PRAYING TO MODIFY AND SET ASIDE THE IMPUGNED AWARD DATED 09.06.2020 IN ECA.NO.23/2014 BY THE ADDITIONAL SENIOR CIVIL JUDGE AND JMFC, MACT AT HUNSUR. IN MFA.NO.5548/2021: BETWEEN: OFFICER-IN-CHARGE CENTRAL TOBACCO RESEARCH INSTITUTE CHIKKAHUNSUR HUNSUR POST HUNSUR-571 105 ...APPELLANT (BY SRI B.A.CHANDRASHEKAR, ADVOCATE) AND: 1. MAHADEVAMMA W/O.LATE NINGARAJU SINCE DEAD BY LRS. 2. SHARATH KUMAR S/O.LATE NINGARAJU AGED ABOUT 33 YEARS 3. BHARATH KUMAR S/O.LATE NINGARAJU AGED ABOUT 31 YEARS R-2 & R-3 ARE R/AT DARGA MAIN ROAD CHIKKAHUNSURU HUNSUR POST HUNSUR-571 105 ...RESPONDENTS (BY SRI ROHITH SWAMY, ADVOCATE FOR R-2 & R-3; R-2 & R-3 ARE TREATED AS LRS. OF DECEASED R-1 VIDE ORDER DATED 22.08.2024) - 4 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 30(1) OF THE EMPLOYEE'S COMPENSATION ACT, 1923, PRAYING TO SET ASIDE THE IMPUGNED AWARD DATED 09.06.2020 IN ECA.NO.23/2014 BY THE ADDITIONAL SENIOR CIVIL JUDGE AND JMFC, MACT AT HUNSUR. THESE APPEALS ARE COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE PRADEEP SINGH YERUR ORAL JUDGMENT These appeals are preferred challenging the judgment and award dated 09.06.2020 passed in ECA.No.23/2014 by the Additional Senior Civil Judge and JMFC and MACT, Hunsur (for short ‘the trial Court'). 2. Parties to the appeals shall be referred to as per their status before the trial Court. 3. Brief facts of the case are as under: One Ningaraju, who was the husband of claimant No.1 and father of claimant Nos.2 and 3, was working in the Central Tobacco Research Institute (for short, 'CTRI'), Chikka Hunsur from 01.04.1996 to 30.06.2010 as a Casual Labourer. On 30.06.2010, while he was doing agricultural activities in the said center, he fell down from the bullock - 5 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 cart and sustained grievous injuries to his body. He was immediately shifted to the Hospital. On 01.07.2010, complaint was filed with Hunsur Police Station and on 30.07.2010, he died due to the injuries sustained by him. 3.1 It is stated that the claimants being the legal heirs of the deceased Ningaraju filed a claim petition for compensation against the respondents for untimely death of deceased and sudden loss causing severe financial crisis to the claimants. 3.2 On service of notice, respondent No.4 was placed ex parte. Respondent Nos.1 to 3, 5 and 6 appeared before the trial Court. Respondent Nos.1 to 3 filed their objections and respondent Nos.5 and 6 did not file their objections. 3.3 On the basis of material evidence, both oral and documentary and on hearing the submissions of learned counsels for both parties, the trial Court awarded compensation of Rs.5,33,320/- with interest @ 12% p.a. from the date of occurrence of alleged accident till deposit. - 6 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 3.4 Being aggrieved by the same, the claimants are before this Court in MFA.No.1456/2022 seeking enhancement of compensation and the CTRI-employer is also before this Court in MFA.No.5548/2021 seeking to set aside the judgment and award passed by the trial Court. 4. It is the vehement contention of learned counsel for claimants that the trial Court has committed a gross error in awarding meager compensation by not taking into account the correct minimum wages as contemplated under the Employee's Compensation Act, 1923 (for short, 'the Act'). It is further contended that the trial Court ought have taken the minimum wages at Rs.8,000/- per month as per the latest Government Gazette Notification rather than assessing the income at Rs.6,000/- per month, which per se erroneous and contrary to the statute and the amendment made by the Central Government. It is also contended by learned counsel that the trial Court ought to have taken the interest @ 18% p.a rather than 12% p.a. Therefore, he seeks enhancement of compensation. - 7 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 5. Per contra, learned counsel for the CTRI-employer contends that the trial Court, has in fact, committed an error by taking minimum wages at Rs.6,000/- p.m., whereas it ought to have taken the same at Rs.141/- per day as per the Special Office Order issued by the CTRI dated 25.09.2010. So also, it is contended by learned counsel that the interest awarded by the trial Court at 12% is also on the higher side. Hence, he seeks to allow his appeal and consequently, set-aside the impugned judgment and award as the trial Court has awarded exorbitant compensation. 6. Having heard learned counsel for claimants and learned counsel for CTRI, the substantial questions of law that arise for consideration before this Court are: "i) Whether the trial Court is justified in taking the income of the deceased at Rs.6,000/- per month or the income requires to be taken at Rs.8,000/-? ii) Whether the trial Court has committed an error in awarding interest @ 12% p.a. as pleaded by the CTRI? - 8 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 iii) Whether the interest is to be awarded @ 18% p.a. as pleaded by the claimants?" 7. It is not in dispute that the employment of the deceased with CTRI, the salary that was drawn as a Casual Labourer, so also, the deceased having fallen down during the course of employment and the death having occurred during and in the course of the employment. The question that requires to be considered here is what is the salary and wages that requires to be taken into consideration for awarding compensation? 8. It is also not in dispute that the deceased was aged 45 years as on the date of occurrence of accident and the death. This Court need not go into the aspect as to whether the deceased is a workman as contemplated under the Act, as the same is not seriously disputed. 9. Now coming to the question of minimum wages, it is seen that the accident occurred on 30.06.2010. On 31.05.2010, the Ministry of Labour and Employment vide Gazette Notification, fixed the monthly wages of the - 9 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 employees at Rs.8,000/- in pursuance to Section 4(1B) of the Act. Therefore, the income/monthly wages is required to be taken at Rs.8,000/- per month. As contemplated under Section 4(1)(a) of the Act, where the death results from the injury sustained in the accident arising out of and in the course of employment, the employer shall be liable to pay the compensation to the legal heirs of the deceased and 50% of the monthly wages of the deceased is taken as wages for calculation multiplied by the relevant factor. Therefore, in the present case on hand, the accident having occurred on 30.06.2010, the minimum wages is taken at Rs.8,000/- per month and 50% of the same would be Rs.4,000/- per month as per the age of the deceased 45 years. The relevant factor of the multiplier would be 169.44 as per Schedule-IV. Therefore, the compensation that would have to be awarded to the claimants is Rs.6,77,760/- (Rs.4,000/- x 169.44). 10. As contemplated under Section 4(4) of the Act, the funeral expenses can be awarded, which shall not be - 10 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 less than Rs.5,000/-. In view of the same, this Court deems it appropriate to award Rs.25,000/- towards funeral expenses. In all, the claimants are entitled for compensation of Rs.7,02,760/-. 11. Coming to the aspect of interest, the trial Court has awarded interest @ 12% p.a. from the date of occurrence of accident till deposit. However, I do not find any good ground or cogent reason to interfere with the same as the interest awarded by the trial Court @ 12% from the date of occurrence of alleged accident, is correct. I am not in agreement with learned counsel for claimants with regard to award of interest @ 18% p.a., as the same is not contemplated under the statute. Therefore, I am neither inclined to accept the submission of learned counsel for claimants to enhance the rate of interest nor the submission of learned counsel for CTRI to reduce the rate of interest from 12%. Hence, the substantial questions of law formulated above are answered accordingly. - 11 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 12. Under the circumstance, I pass the following: ORDER i) The appeal preferred by the claimants is allowed; ii) The appeal preferred by CTRI-employer is dismissed; iii) The judgment and award dated 09.06.2020 passed in ECA.No.23/2014 by the Additional Senior Civil Judge and JMFC and MACT, Hunsur, is hereby modified; iv) The claimants are entitled to the total compensation of Rs.7,02,760/- along with interest @ 12% p.a. from the date of occurrence of accident; v) The balance compensation shall be paid by the CTRI-employer within a period of four weeks from the date of receipt of a copy of this order; vi) The original records, if any, shall be transmitted to the jurisdictional trial Court forthwith; - 12 - NC: 2025:KHC:1480 MFA No. 1456 of 2022 C/W MFA No. 5548 of 2021 vii) All other terms and conditions stipulated by the trial Court with regard to release and deposit of the compensation amount is retained. Sd/- (PRADEEP SINGH YERUR) JUDGE LB List No.: 1 Sl No.: 49