- 1 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 12TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE ASHOK S. KINAGI MISCELLANEOUS FIRST APPEAL NO. 23466 OF 2013 (WC-) C/W MISCELLANEOUS FIRST APPEAL NO. 23467 OF 2013 MISCELLANEOUS FIRST APPEAL NO. 24700 OF 2013 MISCELLANEOUS FIRST APPEAL NO. 24701 OF 2013 IN MFA NO.23466 OF 2013 BETWEEN: 1. THE DIVISIONAL MANAGER, THE ORIENTAL INSURANCE COMPANY LTD., BALLARI, REPRESENTED BY THE ORIENTAL INSURANCE COMPANY LTD., REGIONAL OFFICE, SUMANGALA COMPLEX, 2ND FLOOR, LAMINGTON ROAD, HUBLI -580020 …APPELLANT (BY SRI. S K KAYAKAMATH, ADV) AND: 1. SRI. GOURANNA S/O YALLAPPA AGE: 29 YEARS, OCC: EX-DRIVER, R/O. RAMPUR VILLAGE, TQ. MOLAKALMURU, NOW AT RUPANAGUDI ROAD, MILLERPETH, BALLARI. 2. SRI. B. JAYARAM REDDY S/O. B.S.M. GANGANNA, AGE: MAJOR, OCC: OWNER OF THE LORRY BEARING NO.KA-16/C-5323, R/O. KONDAPUR VILLAGE, J.B. HALLI, POST, TQ: MOLAKALMURU, DIST. CHITRADURGA. …RESPONDENTS (BY SRI. Y LAKSHMIKANT REDDY, ADV FOR R1, NOTICE TO R2 IS DISPENSED WITH) MOHANKUMAR B SHELAR Digitally signed by MOHANKUMAR B SHELAR Date: 2025.08.22 13:01:14 +0530 - 2 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER THIS MFA IS FILED U/SEC.30(1) OF WC ACT, 1923, AGAINST THE ORDER DTD:21.05.2013 PASSED IN WC/NF 2/2009 ON THE FILE OF THE LABOUR OFFICER AND COMMISSIONER FOR WORKMENS COMPENSATION, SUB-DIVISION-I, BALLARI, AWARDING THE COMPENSATION OF RS.1,44,577/- WITH INTEREST AT THE RATE OF 12% P.A., FROM THE DATE OF PETITION AND SHALL BE DEPOSITED WITHIN 30 DAYS FROM THE DATE OF THE ORDER. THIS APPEAL, COMING ON FOR FINAL HEARING, IN MFA NO.23467 OF 2013 BETWEEN: 1. THE DIVISIONAL MANAGER THE ORIENTAL INSURANCE COMPANY LTD., BALLARI, REP BY THE ORIENTAL INSURANCE COMPANY LTD., REGIONAL OFFICE, SUMANGALA COMPLEX, 2ND FLOOR, LAMINGTON ROAD, HUBLI-580020. …APPELLANT (BY SRI. S.K. KAYAKAMATH, ADV) AND: 1. SRI. M. HANUMANTHAPPA S/O MURALI AGE: 26 YEARS, OCC: EX-CLEANER, R/O. A.K.COLONY RAMPUR VILLAGE, TQ: MOLAKALMURU, NOW AT TALUR ROAD, BALLARI. 2. SRI. B. JAYARAM REDDY S/O. B.S.M. GANGANNA AGE: MAJOR, OCC: OWNER OF THE LORRY BEARING NO.KA-16/C-5323, R/O. KONDAPUR VILLAGE, J.B.HALLI POST, TQ: MOLAKALMURU, DIST: CHITRADURGA. …RESPONDENTS (BY SRI. Y. LAKSHMIKANT REDDY, ADV FOR R1, NOTICE TO R2 IS SERVED) THIS MFA FILED U/SEC.30(1) OF WC ACT, 1923, AGAINST THE ORDER DTD:21.05.2013 PASSED IN WC/NF 3/2009 ON THE FILE OF THE LABOUR OFFICER AND COMMISSIONER FOR WORKMENS COMPENSATION, SUB-DIVISION-I, BALLARI, AWARDING THE COMPENSATION OF RS.46,487/- WITH INTEREST AT THE RATE OF - 3 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER 12% P.A. FROM THE DATE OF PETITION AND SHALL BE DEPOSITED WITHIN 30 DAYS FROM THE DATE OF THE ORDER. THIS APPEAL, COMING ON FOR FINAL HEARING, IN MFA NO.24700 OF 2013 BETWEEN: 1. SRI. GOURANNA S/O YALLAPPA AGE: 29 YEARS, OCC: EX-DRIVER, R/O. RAMPURA, TQ. MOLAKALMOORU NOW R/AT: ROOPANGUDI ROAD, MILLER PET, BALLARI. …APPELLANT (BY SRI. Y. LAKSHMIKANT REDDY, ADV) AND: 1. SRI. B. JAYARAM REDDY S/O B.S.M. GANGANNA OCC: LORRY OWNER BEARING REG. NO.KA-16/C-5323 R/O. KONDAPUR VILLAGE, J.B.HALLI POLST, MOLAKALMOORU TALUK, CHITRADURGA DISTRICT. 2. THE DIVISIONAL MANAGER, ORIENTAL INSURANCE COMPANY LTD., BALLARI. …RESPONDENTS (BY SRI. S.K. KAYAKAMATH, ADV FOR R2 NOTICE TO R1 IS DISPENSED WITH) THIS MFA IS FILED U/SEC.30(1) OF WC ACT, 1923, AGAINST THE ORDER DATED 21.05.2013 PASSED IN W.C. NO.2/2009 ON THE FILE OF THE LABOUR OFFICER AND COMMISSIONER FOR WORKMENS COMPENSATION, SUB DIVISION-I, BALLARI PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL, COMING ON FOR FINAL HEARING, - 4 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER IN MFA NO.24701 OF 2013 BETWEEN: 1. SRI. M. HANUMANTHAPPA S/O MURALI, AGED: 25 YEARS, OCC: EX-CLEANER, R/O. M.K.COLONY, RAMPUR, MOLAKALMURU TALUK, PRESENTLY AT TALUR ROAD, BALLARI. …APPELLANT (BY SRI. Y. LAKSHMIKANT REDDY, ADV) AND: 1. 2. SRI. B. JAYARAM REDDY S/O B.S.M.GANGANNA, OCC: LORRY OWNER BEARING REG. NO.KA-16/C-5323, R/O. KONDAPUR VILLAGE, J.B. HALLI POST, TQ. MOLAKALMOORU, DIST. CHITRADURGA. THE DIVISIONAL MANAGER, ORIENTAL INSURANCE CO. LTD., BALLARI. …RESPONDENT (BY SRI. S.K. KAYAKAMATH, ADV FOR R2; NOTICE TO R1 IS DISPENSED WITH) THIS MFA IS FILED U/SEC.30(1) OF WC ACT, 1923, AGAINST THE ORDER DATED 21.05.2013 PASSED IN W.C. NO.3/2009 ON THE FILE OF THE LABOUR OFFICER AND COMMISSIONER FOR WORKMENS COMPENSATION, SUB DIVISION-I, BALLARI PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION. THIS APPEAL, COMING ON FOR FINAL HEARING, THIS DAY, THE JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI - 5 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI) These appeals arise out of the common award dated 21.05.2013, passed by the Labour Officer and the Commissioner for Workmen’s Compensation, Sub-Division- I, Ballari, (hereinafter referred to as ‘Commissioner’, for short) in W.C.N.F.Nos.2/2009 and 3/2009. 2. Brief facts, leading rise to the filing of these appeals, are as follows: That the petitioners were working as driver and cleaner under the respondent No.1-employer in a lorry bearing No.KA-16/C-5323. On 07.11.2008, the petitioners loaded the materials at Bengaluru at the instance of respondent No.1-employer, and on the next day 08.11.2008, they were proceeding to Ballari to unload the material. When they reached near Hanagal, the Driver of the lorry lost the control over the lorry and the lorry toppled down. As a result, both the petitioners sustained - 6 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER a grievous injuries. As such, they filed the petitions seeking a compensation. It is contended that the accident occurred during the course of employment, and sought a compensation from the insurance company. 3. Respondent No.1-employer filed a statement of objections and admitted that the petitioners were working under him, and that the accident occurred during the course of employment. 4. Respondent No.2-insurance company filed a statement of objections denying the petition’s averments and prays for dismissal of the claim petition. 5. To prove their case, the petitioners examined themselves as PW-1 and PW-2, and marked 11 documents as Exs.P-1 to P-11. The Insurance company has not examined any of its officials; however marked the insurance policy as Ex.R-1. 6. The Commissioner, based on the evidence led by the petitioners, allowed the petitions in part vide award - 7 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER dated 21.05.2013 and awarded a sum of Rs.1,44,577/- to the petitioner in W.C.N.F.No.2/2009 and a sum of Rs.46,487/- to the petitioner in W.C.N.F.No.3/2009 with interest at 12% p.a. after one month from the date of accident till its realization. The Insurance Company was directed to pay the compensation to the petitioners. The petitioners aggrieved by the common award filed the appeals in MFA No.24700/2013 and MFA No.24701/2013 and the Insurance Company, being aggrieved by the some common award filed the appeals in MFA No.23466/2013 and MFAA No.23467/2013. 7. Heard the learned counsel for the petitioners and the learned counsel for the insurance company. 8. Learned counsel for insurance company submits that the Commissioner has committed an error in assessing the loss of earning capacity of the petitioner in W.C.N.F.No.2/2009 at 30%, by ignoring item No.14 at part II of Schedule I of the Workmen’s Compensation Act, - 8 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER 1923 which discloses that for loss of all toes of both feet proximal to proximal inter-phalangeal joint, is to be assessed at 30%. Hence, he submits that the disability assessed by the Commissioner to the petitioner in W.C.N.F.No.2/2009 is on the higher side, as the said petitioner has suffered only a fracture, and not an amputation. He submits that the Commissioner has also committed an error in assessing the loss of earning capacity of the petitioner in W.C.N.F.No.3/2009 at 10%. Hence, on these grounds, he prays to allow the appeals filed by the insurance company, and to dismiss the appeals filed by the petitioners. 9. Per contra, learned counsel for petitioners submits that the Commissioner has committed an error in not considering the income of the petitioners at Rs.5,000/- p.m. and Rs.4,000/- p.m, respectively. Hence, on this ground, prays to allow the appeals filed by the petitioners, and to dismiss the appeals, filed by the insurance company. - 9 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER 10. Perused the records, and considered the submissions of the learned counsel for the parties. 11. This Court, vide order dated 03.02.2022, admitted the appeals in M.F.A.No.23466/2013, and 23467/2013 to consider the following substantial questions of law: IN M.F.A.No.23466/2013 i. Whether the Labour Officer and Commissioner for workmen compensation is justified in assessing the loss of earning capacity @ 30% by ignoring the item No.14, Part-II of Schedule-I of Workmen’s Compensation Act, which discloses that the loss of earning capacity for amputation of all the toes of both feet proximal inter phalnge joint is 30%? ii. Whether the Labour Officer and Commissioner for Workmen Compensation is justified in assessing the loss of earning capacity @ 30% without considering the ratio laid down by the Full Bench of Karnataka High Court in the case of S.S. PATIL Vs. A. B. Bavihal and others reported in ILR Karnataka Page 193? - 10 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER IN M.F.A.No.23467/2013 i. Whether the Labour Officer and Commissioner for workmen compensation is justified in assessing the loss of earning capacity @ 10% by ignoring the Section 4(1)(c) of the W.C. Act? ii. Whether the Labour Officer and Commissioner for Workmen Compensation is justified in assessing the loss of earning capacity @ 10% without considering the ratio laid down by the Full Bench of Karnataka High Court in the case of S.S. PATIL Vs. A. B. Bavihal and others reported in ILR Karnataka Page 193? 12. There is no dispute that the petitioners sustained injuries, and the accident occurred during the course of employment. 13. As per the Workmen’s Compensation Act, 1923 the income of the petitioners is to be considered at Rs.4,000/- p.m. for the accident of 2008, whereas the Commissioner has considered the income of the petitioner in W.C.N.F.No.2/2009 at Rs.4,500/- p.m., which is on the higher side and has considered the income of the - 11 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER petitioner in W.C.N.F.No.3/2009 at Rs.3,500/- p.m. which is on the lower side. Accordingly, the income of the petitioners in both the petitions is re-considered at Rs.4,000/- p.m. 14. Ex.P-7 is the disability certificate about the petitioner in W.C.N.F.No.2/2009 and Ex.P-11 is the disability certificate about the petitioner in W.C.N.F.No.3/2009. Both certificates are issued by Dr. Lakshmi Narayana. K., Ballari, who has opined that the petitioner in W.C.N.F.No.2/2009 has suffered disability to the extent of 30% and the petitioner in W.C.N.F.No.3/2009 has suffered disability to the extent of 15%. 15. The Commissioner has ignored item No.14, part II of Schedule I of the Workmen’s Compensation Act, 1923. Hence, the loss of earning capacity assessed by the Commissioner in W.C.N.F.No.2/2009 at 30% is on the higher side. From the perusal of the records produced by - 12 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER the petitioners, and considering the evidence of the doctor, this Court re-assesses the loss of earning capacity of the petitioner in W.C.N.F.No.2/2009 at 15%, as he has suffered only injuries, and a fracture and not amputation of the toes. Accordingly, the loss of earning capacity is re- calculated as under: Rs.4,000 x 60% = 2,400/- Rs.2,400 x 178.49 x 15% = 64,256/- 16. The Commissioner has assessed the disability of the petitioner in W.C.N.F.No.3/2009 at 10% which is just and proper, and do not call for any interference. Accordingly, the loss of earning capacity is re-calculated as under: Rs.4,000 x 60% = 2,400/- Rs.2,400 x 221.37 x 10% = 53,128/- 17. In view of the above discussion, substantial questions of law framed in MFA No.23466/2013 are answered in negative and substantial question of law - 13 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER framed in MFA No.23467/2013 are answered in affirmative. 18. Accordingly, I proceed to pass the following order: ORDER (i) M.F.A.No.23466/2013 and M.F.A.No.24701/2013 are allowed in part. (ii) M.F.A.No.23467/2013 and M.F.A.No.24700/2013 are hereby dismissed. (iii) The judgment and award dated 21.05.2013 passed by the Labour Officer and Commissioner for Workmen’s Compensation, Sub-Division-I, Ballari, in W.C.N.F.Nos.2/2009 and 3/2009 are hereby modified. (iv) The compensation awarded by the Commissioner to the petitioner in W.C.N.F.No.2/2009 is reduced from Rs.1,44,577/- to Rs.64,256/-. (v) The compensation awarded by the Commissioner to the petitioner in - 14 - HC-KAR NC: 2025:KHC-D:10105 MFA No. 23466 of 2013 C/W MFA No. 23467 of 2013 MFA No. 24700 of 2013 AND 1 OTHER W.C.N.F.No.3/2009 is enhanced from Rs.46,487/- to Rs.53,128/-. (vi) The insurance company is directed to deposit the compensation amount with accrued interest within a period of two months from the date of receipt of a copy of this order. (vii) The amount in deposit be transmitted to the Commissioner. (viii) The office is directed to refund the excess amount, if any, to the insurance company. Sd/- (ASHOK S. KINAGI) JUDGE NAA CT: BSB List No.: 1 Sl No.: 3