- 1 - NC: 2025:KHC-D:3188-DB MFA No. 102698 of 2019 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 17TH DAY OF FEBRUARY, 2025 PRESENT THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR MISCELLANEOUS FIRST APPEAL NO. 102698 OF 2019 (WC) BETWEEN: 1. SMT. LALITHA W/O LATE SHYAM @ SABANNA AGED ABOUT 38 YEARS, 2. NAVEEN KUMAR S/O LATE SHYAM @ SABANNA AGED ABOUT 19 YEARS, 3. MANJUNATH S/O LATE SHYAM @ SABANNA AGED ABUT 18 YEARS, 4. DARSHAN S/O LATE SHYAM @ SABANNA S., AGED ABOUT 16 YEARS, SINCE THE APPELLANT NO.4 IS MINOR R/BY THEIR MOTHER AS NEXT FRIEND R/O TALUR ROAD, BALLARI 583101. …APPELLANTS (BY MISS. SOUBHAGYA VAKKUND, ADVOCATE FOR SRI. Y. LAKSHMIKANT REDDY, ADVOCATE) AND: 1. I YERRISWAMY S/O I JAMBANNA PROPRIETOR OF SLV TRAVELS, BALLARI ROAD HOSAPETE-POST, BALLARI DIST-583101. OWNER OF THE BUS BEARING REG NO.KA 01/AA-468. 2. THE BRANCH MANAGER UNITED INDIA INSURANCE CO. LTD., Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench - 2 - NC: 2025:KHC-D:3188-DB MFA No. 102698 of 2019 R/O PARVATHI NAGAR BALLARI 583101. …RESPONDENTS (BY SMT. PREETI SHASHANK, ADVOCATE FOR R2; NOTICE TO R1 IS SERVED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 30(1) OF THE EMPLOYEES COMPENSATION ACT 1923, PRAYING TO, ALLOW THE APPEAL BY MODIFYING THE JUDGMENT AND AWARD DATED 31.01.2019 PASSED BY I ADDITIONAL SENIOR CIVIL JUDGE AT BALLARI IN ECA NO.10/2016 BY ENHANCING THE COMPENSATION FROM AWARDED AMOUNT RS 5,08,320/- TO CLAIMED AMOUNT OF RS.25,00,000/- TO THE APPELLANT AND PASS SUCH OTHER ORDER OR ORDERS AS THIS HON’BLE COURT DEEMS FIT IN THE CIRCUMSTANCES IN THE INTEREST OF JUSTICE AND EQUITY. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR - 3 - NC: 2025:KHC-D:3188-DB MFA No. 102698 of 2019 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE B.M.SHYAM PRASAD) This appeal is by the wife and children of the deceased Shyam @ Sabanna, and their claim petition under the Employee’s Compensation Act, 1923 [‘the E.C. Act’] in E.C.A. No.10/2016 is allowed-in-part by the impugned judgment and award dated 31.01.2019 awarding a sum of Rs.5,08,320/- holding the employer accountable to pay this compensation absolving the Insurer for liability. 2. The undisputed facts are that the deceased Shyam was employed as a cleaner in a passenger vehicle [a bus] and he has died in an accident that has occurred while he was travelling in the bus in the course of his employment. The Commissioner has held that the Insurer is not liable because the vehicle involved in the accident is a passenger vehicle, and the Commissioner has taken the income of the deceased at Rs.6,000/- per month and multiplied 50% of such salary by the relevant factor [169.44] in awarding a sum of Rs.5,08,320/-. - 4 - NC: 2025:KHC-D:3188-DB MFA No. 102698 of 2019 3. The learned counsel for the appellant is categorical that she does not call in question the Commissioner’s finding on the Insurer’s liability, but she proposes the following substantial question for consideration. Whether the Commissioner could have taken the income of the deceased at Rs.6,000/- per month when the ceiling under the provisions of Section 4 of the Employee’s Compensation Act for the relevant period is Rs.8,000/- per month, and whether the Commissioner could have granted interest at the rate of 12% per annum from the date of judgment. 4. This Court opines that the substantial question proposes is well proposed inasmuch as the notification issued under the E.C. Act for the relevant year fixes an income for the purposes of computing compensation in a sum of Rs.8,000/- per month, and further, that the liability to pay interest at 12% would start from the expiry of one month from the date of the accident. As such, there must be - 5 - NC: 2025:KHC-D:3188-DB MFA No. 102698 of 2019 interference on the afore question re-computing the compensation and such re-computation will be as follows: Rs.8,000/2 = Rs.4,000/- x 169.44 = Rs.6,77,760/- Admittedly, the interest will be payable at the rate of 12% per annum after the expiry of one month from the date of the accident. The appeal is allowed in part modifying the Commissioner’s judgment and award granting a sum of Rs.6,77,760/- along with interest at 12% per annum from the date of expiry of [30] thirty days from the date of the accident. Sd/- (B.M.SHYAM PRASAD) JUDGE Sd/- (RAMACHANDRA D. HUDDAR) JUDGE RSH, CT:VP LIST NO.: 2 SL NO.: 11