- 1 - HC-KAR NC: 2025:KHC-D:8331 MFA No. 103906 of 2016 C/W MFA No. 103907 of 2016 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 3RD DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO. 103906 OF 2016 (WC) C/W MISCELLANEOUS FIRST APPEAL NO. 103907 OF 2016 IN MFA NO. 103906 OF 2016: BETWEEN: M/S. UNITED INDIA INSURANCE CO. LTD., THE DIVISIONAL MANAGER, P.B. NO.40, OPP. RADHIKA TALKIES, RAGHAVACHARI ROAD, BALLARI, NOW NEW ADDRESS, DIVISIONAL OFFICE, SHREE SHANKARA COMPLEX, OPP. SONY COMPLEX, PARVATHI NAGAR, MAIN ROAD, BALLARI, REP. BY ITS DIVISIONAL MANAGER. … APPELLANT (BY SRI. SHARANAPPA S. KOLIWAD, ADVOCATE) AND: 1. K. BASHA SAB S/O KHADER VALI SAB, MUSLIM, AGE: 72 YEARS, OCC: NIL, R/O: BUKKASAGARA VILLAGE, TQ: HOSAPETE, NOW RESIDING AT: C/O. TAPAL RAJA SAB, HOSA DAROJI VILLAGE, TQ: SANDUR, DIST: BALLARI. 2. SMT. K. JALAL BEE W/O K. BASHA SAB, AGE: 62 YEARS, OCC: HOUSE WIFE, R/O: BUKKASAGARA VILLAGE, TQ: HOSAPETE, NOW RESIDING AT: C/O. TAPAL RAJA SAB, HOSA DAROJI VILLAGE, TQ: SANDUR, DIST: BALLARI. Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:8331 MFA No. 103906 of 2016 C/W MFA No. 103907 of 2016 3. 3A. KUMARA GOUDA, SINCE DECEASED BY HIS LEGAL REPRESENTATIVES, B.K. RUDRA GOUDA S/O LATE KUMARA GOUDA, AGE: 42 YEARS, OCC: BUSINESS, GENERAL POWER OF ATTORNEY HOLDER OF B.K.G. MINES COMPANY, NO.125-B, L.B. COLONY, SANDUR-583 219, DIST: BALLARI. … RESPONDENTS (BY SRI. MANJUNATH G. PATIL, ADVOCATE FOR R1 AND R2; SMT. PADMAJA S. TADAPATRI, ADVOCATE FOR SRI. K.L. PATIL, ADVOCATE FOR R3A.) THIS MFA IS FILED UNDER SECTION 30(1) OF THE EMPLOYEES COMPENSATION ACT, 1923, PRAYING TO EXAMINE THE SAME AND SET ASIDE THE JUDGMENT AND AWARD DATED: 30.07.2016, PASSED IN E.C.A. NO.38/2015, ON THE FILE OF THE SENIOR CIVIL JUDGE-CUM-MOTOR ACCIDENT CLAIMS TRIBUNAL NO.VI, AT KUDLIGI. IN MFA NO. 103907 OF 2016: BETWEEN: M/S. UNITED INDIA INSURANCE CO. LTD., THE DIVISIONAL MANAGER, P.B. NO.40, OPP. RADHIKA TALKIES, RAGHAVACHARI ROAD, BALLARI, NOW NEW ADDRESS, DIVISIONAL OFFICE, SHREE SHANKARA COMPLEX, OPP. SONY COMPLEX, PARVATHI NAGAR, MAIN ROAD, BALLARI, REP. BY ITS DIVISIONAL MANAGER. … APPELLANT (BY SRI. SHARANAPPA S. KOLIWAD, ADVOCATE) AND: 1. SMT. SHWETA N. DESHMUCK W/O LATE NAGARAJ, AGE: 31 YEARS, OCC: HOUSE WIFE, R/O: BHAGYA JOTHI COLONY, - 3 - HC-KAR NC: 2025:KHC-D:8331 MFA No. 103906 of 2016 C/W MFA No. 103907 of 2016 13TH WARD, SANDUR, DIST: BALLARI. 2. MINOR SRINIVAS NAGARAJ DESHMUCK S/O LATE NAGARAJ, AGE: 08 YEARS, OCC: STUDENT, R/O: BHAGYA JOTHI COLONY, 13TH WARD, SANDUR, DIST: BALLARI, (SINCE MINOR REPRESENTED BY MOTHER, NEXT FRIEND, NATURAL GUARDIAN SMT. SHWETA N. DESHMUCK, WIFE OF LATE NAGARAJ RESPONDENT NO.1 HEREIN) 3. 3A. KUMARA GOUDA, SINCE DECEASED BY HIS LEGAL REPRESENTATIVES, B.K. RUDRA GOUDA S/O LATE KUMARA GOUDA, AGE: 42 YEARS, OCC: BUSINESS, GENERAL POWER OF ATTORNEY HOLDER OF B.K.G. MINES COMPANY, NO.125-B, L.B. COLONY, SANDUR-583 219, DIST: BALLARI. … RESPONDENTS (BY SRI. MANJUNATH G. PATIL, ADVOCATE FOR R1 AND R2; R2 MINOR REPRESENTED BY R1; SMT. PADMAJA S. TADAPATRI, ADVOCATE FOR SRI. K.L. PATIL, ADVOCATE FOR R3A.) THIS MFA IS FILED UNDER SECTION 30(1) OF THE EMPLOYEES COMPENSATION ACT, 1923, PRAYING TO EXAMINE THE SAME AND SET ASIDE THE JUDGMENT AND AWARD DATED: 30.07.2016, PASSED IN E.C.A. NO.39/2015, ON THE FILE OF THE SENIOR CIVIL JUDGE-CUM-MOTOR ACCIDENT CLAIMS TRIBUNAL NO.VI, AT KUDLIGI. THESE APPEALS, COMING ON FOR HEARING-INTERLOCUTORY APPLICATION THIS DAY, JUDGMENT IS DELIVERED THEREIN AS UNDER: - 4 - HC-KAR NC: 2025:KHC-D:8331 MFA No. 103906 of 2016 C/W MFA No. 103907 of 2016 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) These two appeals are filed by the insurance company under Section 30(1) of the Workmen’s Compensation Act, 1923 (for short, ‘Act, 1923’), questioning the common judgment and award dated 30.07.2016 passed in ECA Nos.38 & 39 of 2015 on the file of Senior Civil Judge-Cum- MACT No.VI, Kudligi (for short, ‘Commissioner’), thereby for the employment injuries sustained to the workmen/claimants, the learned Commissioner has awarded a compensation of Rs.5,96,500/- and Rs.5,60,700/- along with interest at 12% p.a respectively. 2. Learned counsel for the appellant/insurance company submitted that as per insurance policy, the employer has paid premium of Rs.6,41,000/- for 18 employees and therefore, to whatever extent the sum is assured, to that extent only, the insurance company is liable to pay compensation and for remaining wages, the employer is liable to pay compensation. Admittedly, the - 5 - HC-KAR NC: 2025:KHC-D:8331 MFA No. 103906 of 2016 C/W MFA No. 103907 of 2016 insurance policy is Workmens Compensation (General) Policy, but not Motor Vehicle Insurance Policy. Therefore, when the employer has paid a sum of Rs.6,41,000/- premium for 18 employees then it comes to for the wage of Rs.2,967/- per month per workmen is insured. The accident is caused on 20.06.2009. Therefore, fixed monthly wage is taken into consideration at Rs.4,000/- per month. The insurance company is liable to pay compensation for the monthly wage assured for Rs.2,967/- per month and for remaining Rs.1,033/- per month, the employer is liable to pay compensation.(Rs.4,000=2967 + 1033). Therefore, the quantum of compensation payable by the insurance company and employer are bifurcated as below. 3. The other factors such as age, relevant factor and percentage of permanent physical disability are not in dispute and as per Commissioner, hence, the same are kept intact. Further, a compensation of Rs.5,000/- is to be awarded towards funeral expenses. - 6 - HC-KAR NC: 2025:KHC-D:8331 MFA No. 103906 of 2016 C/W MFA No. 103907 of 2016 IN MFA No.103906/2016(ECA No.38/2015) In this case the employee died out of and in the course of employment. Therefore, the amount payable by the insurance company is calculated as under: Rs.2,967 x 50/100 x 216.91 = Rs.3,21,786/- Funeral expenses = Rs.5,000/- _______________ Total = Rs.3,26,786/- Further, the amount payable by the employer is calculated as under: Rs.1033 x 50/100 x 216.91=Rs.1,12,034/- 4. The above said quantum of compensation shall be paid by the insurance company and the employer, respectively, to the claimants along with interest at the rate of 12% p.a. from 30 days after the date of the accident till realization. The interest is payable by the employer. - 7 - HC-KAR NC: 2025:KHC-D:8331 MFA No. 103906 of 2016 C/W MFA No. 103907 of 2016 MFA No.103907/2016(ECA No.39/2005) In this case the employee died out of and in the course of employment. Therefore, the amount payable by the insurance company is calculated as under: Rs.2967 x 50/100 x186.90 =Rs.2,77,266/- Funeral expenses =Rs.5,000/- _____________ Total =Rs.2,82,266/- Further, the amount payable by the employer is calculated as under: Rs.1033 x 50/100x 186.90=Rs.96,534/- 5. The above said quantum of compensation shall be paid by the insurance company and the employer, respectively, to the claimants along with interest at the rate of 12% p.a. from 30 days after the date of the accident till realization. The interest is payable by the employer. - 8 - HC-KAR NC: 2025:KHC-D:8331 MFA No. 103906 of 2016 C/W MFA No. 103907 of 2016 6. In the result, I proceed to pass the following: ORDER a) The appeals are allowed in part. b) The judgment and award dated 30.07.2016 passed in ECA Nos.38 & 39 of 2015 on the file of Senior Civil Judge-Cum- MACT No.VI, Kudligi, stands modified. c) The claimants in MFA No. 103906/2016 are entitled for total compensation of Rs.4,38,820/-. Out of which Rs.3,26,786/- shall be paid by the insurance company and Rs.1,12,034/- shall be paid by the employer. d) The claimants in MFA No. 103907/2016 are entitled for total compensation of Rs.3,78,800/-. Out of which Rs.2,82,266/- shall be paid by the insurance company and Rs.96,534/- shall be paid by the employer. e) The aforesaid amount shall carry interest at the rate of 12% per annum from - 9 - HC-KAR NC: 2025:KHC-D:8331 MFA No. 103906 of 2016 C/W MFA No. 103907 of 2016 thirty days after the date of accident till realization payable by the employer. f) The insurance company and employer shall deposit the compensation as stated above before the learned Commissioner within eight weeks from the date of receipt of certified copy of this judgment. g) The amount in deposit, if any, shall be transmitted to the appellant. h) Excess amount, if any, paid by the appellant/insurer shall be refunded to it. i) No order as to costs. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE RKM CT:BCK LIST NO.: 1 SL NO.: 18