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Bhut Nath Dal Mills v. Tirat Mistry Claimant .

Calcutta High Court
Aug 11, 1948
Smart Summary (Beta)

Structured Summary of the Opinion

Factual and Procedural Background

This is an appeal by the employees from an order of the Commissioner for Workmen's Compensation awarding the respondent a sum (the opinion contains two award figures in different paragraphs: an opening statement that the Commissioner awarded Rs. 1003 less Rs. 8 already received, and later a finding that the Commissioner awarded Rs. 1008). The respondent was a mistri employed by the appellants, Bhutnath Dal Mills. On 1 July 1947, while attempting to put back belting on a moving machine his right hand was dragged into a pulley and seriously injured. As a result he lost the index finger of his right hand and lost the use and movement of the middle, ring and little fingers of the same hand.

The respondent claimed compensation. The appellants resisted the claim on the ground that the accident resulted from the respondent's wilful disobedience of orders expressly given (and rely on Section 3(1)(b)(ii) of the Workmen's Compensation Act). The respondent's case included that each workman had been warned not to effect repairs while machines were in motion and that there was a notice printed in English and Hindi to that effect; a durwan gave evidence that he had seen the respondent replace the belt while the machine was in motion on earlier occasions and had told him not to do so.

The Commissioner concluded that the act was done in the course of employment and that the accident arose out of and in the course of employment. The Commissioner found the respondent's wages to be Rs. 60 per month and assessed the percentage of incapacity at 30 per cent, awarding compensation accordingly. The appellants appealed.

Legal Issues Presented

  1. Whether the employer is exempt from liability under Section 3(1)(b)(ii) of the Workmen's Compensation Act because the accident resulted from wilful disobedience by the workman to an order or rule for safety.
  2. Whether the Commissioner was correct in finding that the accident arose out of and in the course of the respondent's employment.
  3. Whether the amount of compensation awarded by the Commissioner was excessive and, if so, what is the correct method and quantum of compensation under the statutory schedule (Schedule I and Schedule IV and Section 4 Para C of the Act).
  4. Whether an appeal lies to this Court on the factual question of whether the workman's act amounted to wilful disobedience, given Section 30 of the Workmen's Compensation Act.

Arguments of the Parties

Appellants' Arguments

  • The accident was the result of the respondent's wilful disobedience of orders expressly given (relying on Section 3(1)(b)(ii) of the Workmen's Compensation Act) and therefore the employer is not liable.
  • A notice prohibiting handling running machines or effecting repairs while machinery was in motion had been exhibited (in English and Hindi), and that the respondent had disregarded this prohibition.
  • The amount of compensation awarded (Commissioner found 30% incapacity and gave an award) was excessive; under the statutory percentages in Schedule I the total loss should amount to 25% only (10% for loss of the index finger and 5% for each of the other fingers), producing a lower monetary award.

Respondent's Arguments

  • The respondent asserted that each workman had been warned not to effect repairs while machines were in motion and that there was a notice in English and Hindi to that effect.
  • Evidence (from a durwan) that the respondent had been seen replacing the belt when the machine was running was adduced, suggesting prior instances of such activity and that he had been told not to do so on those occasions.
  • The respondent maintained that the accident arose out of and in the course of his employment and he was therefore entitled to compensation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Whitehead v. Reader ((1901) 2 K.B. 48; (70 L.J.K.B. 646) — cited also as (1902) 2 K.B. 48) Illustrates that an act done on the impulse of the moment, even if contrary to an order, may be venial and not amount to wilful misconduct or wilful disobedience; such acts may still be regarded as arising out of and in the course of employment. The Court relied on this authority to support the proposition that the respondent's act (replacing belting while machine was in motion) could have been an impulsive, venial act and therefore not wilful disobedience, supporting the Commissioner's factual finding for compensation.
Estler Bros. v. Phillips ((1922) 15 B.W.C.C. 291) Holds that a workman who disobeyed a notice prohibiting handling a machine while in motion, but who was acting within the scope of employment, could still be entitled to compensation; the award was supported by evidence and upheld. The Court regarded this case as closely in point and as supporting the Commissioner's finding that compensation could be awarded despite the alleged disobedience; the precedent reinforced the factual conclusion that the injury arose in the course of employment and did not establish wilful disobedience precluding liability.

Court's Reasoning and Analysis

The Court proceeded by examining two broad lines of argument: (A) whether the respondent's act amounted to wilful disobedience under Section 3(1)(b)(ii) of the Workmen's Compensation Act and (B) whether the quantum of compensation awarded conformed to the statutory scheme.

A. Wilful Disobedience and Liability

  • The Court emphasized the statutory meaning of "wilful disobedience": mere disobedience is not enough; the disobedience must be deliberate and intended (wilful) — disobedience from forgetfulness or impulse is not covered.
  • The Commissioner was not satisfied that the purported notice prohibiting repairs while machinery was in motion had been effectively communicated to the respondent. Although evidence was led that a notice existed in English and Hindi, the Commissioner found the respondent to be illiterate and that the notice (even if exhibited) had not been shown to have been brought to the respondent's attention in a manner making him understand the prohibition.
  • The durwan's evidence that he had seen the respondent replacing belts and had reproved him was given little weight because the durwan was not a supervisor or foreman and it was not clear that he had authority or duty to give such instructions. The Commissioner therefore found no clear proof of an expressly given order or a rule effectively communicated to the respondent.
  • The Court relied on English authorities (Whitehead v. Reader and Estler Bros. v. Phillips) to show that where the act is impulsive and connected with the work (or where the employee is acting within the scope of employment), the act may not amount to wilful disobedience or serious and wilful misconduct, and that an award of compensation can be sustained on the facts.
  • The Court further held that the question whether the act of the workman amounts to wilful disobedience is essentially one of fact. Under Section 30 of the Workmen's Compensation Act, appeals are restricted to substantial questions of law; a pure appeal on facts (i.e., disputing the Commissioner's factual finding that there was no wilful disobedience) is not permitted. Thus, even if the employers contested the factual findings, the appellate jurisdiction would not lie in the absence of a substantial question of law.

B. Quantum of Compensation — Statutory Construction and Calculation

  • The Court addressed the appellants' contention that the Commissioner could only have found a 25% incapacity on the statutory percentages in Schedule I (10% for loss of index finger; 5% for each finger other than the thumb and index) and therefore the award based on 30% was excessive.
  • The Court acknowledged that the statutory percentages provide prescribed percentages of loss of earning capacity for particular injuries, but noted the inherent difficulty of attempting to fix exact percentages of loss of earning capacity by a fixed table — a point of practical criticism of the schedule. Nevertheless, the Court stated that the schedule is the statutory method and must be followed.
  • The Court explained the mechanism under Section 4 Para C and the explanatory note: where more injuries than one result from the same accident, the percentages are to be aggregated, but the aggregate cannot exceed the amount payable for permanent total disablement (i.e., the aggregation is capped at total disablement).
  • Applying the schedule and the aggregation rule, the Court recited specific monetary calculations from the schedules: for the index finger the figure arrived at (10% of the total permanent disablement amount set out in Schedule IV for a particular wage bracket) and for each other finger the relevant percentage amounts. The opinion contains two related numeric statements from the Court:
    • It states that aggregating Rs. 336 (index finger) plus Rs. 168 for each of the three other fingers yields a total of Rs. 840, which "appears to be the maximum sum which can be awarded to this workman."
    • The Court then applies the statutory method and reduces the Commissioner's award, stating that the amount must be reduced "from Rs. 1008 to a sum of Rs. 810 less the sum of Rs. 8 which had apparently been received by the workman before these proceedings."
  • The Court remarked that although the method of arriving at compensation under the schedule is "most unsatisfactory," it is the method prescribed by statute and therefore must be followed.

Holding and Implications

Holding:

The appeal is partly allowed. The Court upheld the Commissioner's factual conclusion that the respondent's act did not amount to wilful disobedience of an order such as to relieve the employer of liability, but adjusted the monetary award in accordance with the statutory schedule and aggregation rules.

Specific orders and direct consequences for the parties (as stated in the opinion):

  • The amount awarded by the Commissioner is reduced as stated in the opinion: the Court ordered a reduction (stating the award must be reduced from Rs. 1008 to Rs. 810 less Rs. 8 already paid). (The opinion includes both earlier references to awards of Rs. 1003 and Rs. 1008; the Court's operative reduction is described as from Rs. 1008 to Rs. 810 less Rs. 8 already paid.)
  • The respondent (workman) is entitled to three-fourths of the costs in this Court and to the costs incurred by him in the Court below; the hearing fee in this Court was assessed at four gold mohurs.
  • The injunction is dissolved and the amount awarded by the Court may be taken out by the workman.
  • Chakravartti, J. agreed with the judgment.

Implications beyond the parties: The opinion does not announce any new legal principle overturning precedent; it applies existing statutory provisions and English decisions to the facts before the Court. The Court emphasized the limited scope of appeals under Section 30 (i.e., no appeal on pure questions of fact) and the mandatory application of the schedule and aggregation rules even where the Court finds them unsatisfactory in practice.

Note: This summary is confined strictly to the statements and figures as they appear in the provided opinion. Where the opinion itself contains multiple numerical statements about the award (for example, different award figures appear in different paragraphs), those statements have been reported as they appear in the text rather than reconciled by inference.


End of summary. (Opinion text: Harries, C.J.; Chakravartti, J.; appeal partly allowed.)

Show all summary ...

Harries, C.J:— This is an appeal by the employees from an order of the Commissioner for Workmen's Compensation, awarding the respondent a sum of Rs. 1003, less Rs. 8, already received as compensation, with costs.

2. The workman was a mistri employed by the appellants, Bhutnath Dal Mills. On 1st July 1947, while he was trying to put back some belting on a moving machine his right hand was dragged into a pulley and seriously injured. As a result of the accident he lost the index finger of his right hand and lost the use and movement of his middle, ring and little fingers of the same hand. He applied for compensation, but his claim was resisted by the appellants on the ground that the accident was the result of an act of the respondent in wilful disobedience of orders given to him. It was the case for the respondent that each workman, when he was employed, was warned that he was not to effect any repairs while any of the machines in the factory was in motion and further that there was a notice printed in English and Hindi to the same effect. There was also evidence of a durwan that the respondent had been seen replacing the belt when the machine was in motion on previous occasions and had been told that he should not do so.

3. On a consideration of the whole of the evidence, the Commissioner came to the conclusion that the act of the workman was an act done in the course of his employment and that the accident arose out of and in the course of the employment. He held that the respondent's wages were Rs. 60 per month and that the percentage of incapacity was 30 per cent. Upon those figures he awarded the respondent Rs. 1008. It has been urged by the appellants that they were not liable by reason of the provisions of Section 3(1)(b)(ii) of the Workmen's Compensation Act which provides that the employer shall not be liable in the case of an accident which is the result of wilful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of the workman, where the injury does not result in death.

4. It is to be observed that to come within this provision of the Act, the workman must be in wilful disobedience of an order; mere disobedience is not sufficient. Disobedience may be the result of forgetfulness or the result of the impulse of the moment. Such would not be sufficient, as the statute only exempts the employer from liability when the disobedience is wilful, that is, deliberate and intended.

5. The learned Commissioner does not appear to have been satisfied that there was a notice posted up in the factory prohibiting workmen from effecting repairs whilst the machinery was in motion. It is said that the notice, if there was one, was printed in English and Hindi. But what use an English notice would be to an ignorant and illiterate workman, I cannot imagine. Further, if he did not read Hindi, it would also be of no use. Possibly, if the notice had been in Bengali literate workmen would have been able to read it. But it is very doubtful whether an average literate workman could read a notice in English or Hindi for that matter. In any event the learned Commissioner finds that the workman was illiterate. So a notice in any language was perfectly useless as far an he was concerned unless its contents were expressly brought to his notice. The learned Commissioner was not satis, filed that this notice or its contents were ever brought to the notice of the workman in such a manner as to make him understand that effecting repairs whilst machinery was in motion was prohibited. A durwan was called who said that he had seen the respondent effecting repairs whilst the machinery was in motion and that he had instructed him not to do so on those occasions. Had this witness been a foreman or someone whose duty it was to supervise the work the evidence would have been of greater weight. Why the durwan should see what was happening and notice breaches of regulations, I do not know and further, even if he had seen them why should a durwan who is a mere door keeper, or at most a kind of chowkidar, take it upon himself to reprove the workman. I am not surprised that the Commissioner was not satisfied that it had ever been made clearly known to the workman that be was not to effect repairs whilst the machinery was in motion. That being so, no question of disobedience of orders could arise and certainly no question of wilful disobedience of orders.

6. Even if there was a notice exhibited in a prominent place which was not proved, it would still be open to the Commissioner to hold that the act of the workman was nob an act in wilful disobedience of orders. This is clear from an English decision of Whitehead v. Reader, (1901) 2 K.B 48 : (70 L.J.K.B 646). It is true that the words of the English statute are somewhat different. Where the act of the workman in England amounts to serious and wilful misconduct, the employers will not be liable in certain cases. Serious and wilful misconduct may be wilful disobedience of an order. So the English cases are in point. In Whitehead v. Reader, (1902) 2 K.B 48 : (70 L.J.K.B 646) a workman was employed as a carpenter and part of his duty was to sharpen his tools on a grindstone rotated by machinery. He had received orders not to touch the machinery. The band that rotated the grindstone having slipped he endeavoured to replace it, and in doing so was injured. On a claim for compensation under the Workmen's Compensation Act, 1897, the County Court Judge found that the accident arose out of and in the course of the employment of the workman, and negatived serious and wilful misconduct on his part, and made an award in his favour. This award was upheld by the Court of Appeal. At p. 52 Romer L.J observed:

“To make the grindstone work, and so to be able to sharpen his tools, the carpenter may well be said to have been about his master's business when he tried to replace the band, and that on the impulse of the moment he should have forgotten the order as to not touching the machinery is not unnatural and may well be regarded as a venial act and not as being wilful misconduct on his part. I am not able to gather from the facts of the case that the replacing of the band was an act on the workman's part so remote from his ordinary duties that it could not be fairly said to be one arising out of and in the course of his employment.”

7. The case before us is a stronger case, because in the English case it was no part of the carpenter's duty to replace the belting. He merely used the grindstone and as the grindstone had stopped and the belting had come off the pulley, he tried to replace the belting. In the-present case it was the mistri's duty to replace-the belting, though he ought not to have done so whilst the machine was in motion. It appears to me that the Commissioner might well in the words of Lord Romer find that on the impulse of the moment the workman should have for gotten the order if ever given as to not touching the machinery and that the act of the workman] may well be regarded as a venial act and not as being wilful misconduct or act of wilful disobedience on his part.

8. The learned Commissioner also relied ob another English case, namely, Estler Bros. v. Phillips, (1922) 15 B.W.C.C 291, and that case is also very much in point. The workman was employed on a machine which it was part of his duty to clean. He had seen other men cleaning the machine while stationary only. A notice which the man had seen, prohibited him from, cleaning a machine while it was in motion. He was standing at the back of the machine on a platform only used when cleaning the machine, and was cleaning the machine while in motion when his court sleeve was caught and twisted round the shaft. His right leg was drawn into the machine and severely lacerated, and he became wholly incapacitated. The County Court Judge found that the workman was acting within, the scope of his employment, though disobediently, and awarded compensation on the ground that the accident arose out of and in the course of the workman's employment. The House of Lords held that there was evidence to support the finding and that there was no misdirection, and upheld the award.

9. These English cases which in my view apply to the relevant provision of the Indian Act strongly support the workman's case and the view taken by the Commissioner.

10. It is to be observed that though great reliance was placed by the employers on this-notice alleged to have been exhibited, the notice was not produced, and secondary evidence was given of its contents. Even from that evidence it is by no means clear what was said in the notice. What the witness Rash Behari Tewari, the manager of the mill, says is that there was a notice in English and Hindi to the effect that a running machine was not to be handled in case of disorder. Whether there was prohibition or not it is utterly impossible to say, even if that evidence is accepted. However, as I have said the learned Commissioner was not satisfied that it had ever been made clear to the workman that he should never attempt to do anything to the machinery when it was in motion.

11. Further, it appears to me that this appeal in so far as it relates to this matter is a pure appeal on facts and that is not permitted by Section 30 of the Workmen's Compensation Act, which provides that as appeal shall lie from an order of a Commissioner awarding compensation, but it is provided that no appeal shall lie against any order unless a substantial question of law is involved in the appeal. It has always been held in England that whether the act of the workman amounts to serious and wilful misconduct is a pure question of fact and it appears to me whether a workman acts in wilful disobedience of an order in India is a pure question of fact. There can be no question of law at all involved and as the finding is that the act of the workman was not in wilful disobedience of an order, it appears to me that no appeal would lie on this ground if it was the only ground.

12. It was also contended on behalf of the employers that the amount of compensation awarded was: too much. The learned Commissioner has found that the degree of incapacity was thirty per cent. It is urged that he could not have found that the degree of incapacity was more than twenty-five per cent. Reliance was placed on the provisions of such. I to the Act. That provides that the loss of an index finger represents a loss of 10 per cent, of earning capacity and that the loss of any finger other than the thumb and index finger represents a loss of 5 per cent, of earning capacity. The argument is that even if he lost three fingers of the right hand other than the index finger it would only cause a loss of 15 per cent, of the earning capacity and as the loss of the index finger only causes 10 per cent, the total loss would only amount to 25 per cent, of the earning capacity. It appears to me that these provisions of Sch. I are singularly inappropriate. How can it possibly be said with accuracy what percentage of loss of earning capacity a man suffers by the loss of any limb? A sedentary worker would in many cases be able to do his pre-accident work after losing a foot whereas a man trained only for heavy manual work would find it practically impossible to get any work which he could do. The loss of earning capacity must vary according to circumstances.

13. However, in the case of permanent partial incapacity it is expressly provided by S. 4 Para. C that where permanent partial disablement results from an injury specified in sch. 1 such percentage of the compensation which would have been payable in the case of permanent total disablement as is specified therein as being the percentage of the loss of earning capacity caused by that injury. There is an explanation to this clause in these terms:

“Where more injuries than one are earned by the-same accident, the amount of compensation payable under this head shall be aggregated but not so in any case as to exceed the amount which would have been payable if permanent total disablement had resulted from the injuries.”

14. Applying this illustration it is clear that where a workman lost both arms above the elbow, if the two items in Sch. 1 are aggregated it would show a percentage of loss of earning capacity of 130 per cent. The explanation says that in such a case the amount of compensation must not exceed the amount payable if the disablement was total and permanent; in other words the loss of earning capacity must be taken, as 100 percent that is, total permanent disablement and clearly such a workman is totally disabled and not partially.

15. It will be seen from the explanation that the amount of compensation in the case of permanent partial incapacity shall be aggregated. Where an index finger is lost, the percentage of the loss of earning capacity is 10 per cent, and the amount of compensation payable in such a case is that percentage of what would be payable in the case of total permanent disablement, and those amounts are set out in Sch. IV. A man earning between Rs. 70 and Rs. 90 a month would receive Rs. 3360 if he was permanently totally disabled. Where he has lost an index, finger the provision is that he would receive 10 per cent, of this sum of Rs. 3360 namely Rs. 336.

16. Similarly, if he had lost one finger other than the index finger, he would receive 5 per cent, of this figure, namely Rs. 163 and an the explanation provides, where more injuries than one are caused by the same accident, the amount of compensation payable shall be aggregated. It follows that in this case we must take the amount of compensation which will be payable if the index finger only had been lost and add to it the amount of compensation payable for each other finger, because the damage to the other fingers has caused total loss of use and movement and by the note to Sch. I it is clear that complete and permanent loss of the use of any limb or member is equivalent to the loss of that limb or member. Therefore the three fingers other than the index finger can be regarded as lost.

17. If these amounts are aggregated, namely, Rs. 336 for the loss of the index finger and Rs. 168 for the loss of each of the other three fingers, this would bring the total to Rs. 840 and that appears to be the maximum sum which can be awarded to this workman.

18. It appears to me that this method of arriving at the amount of compensation payable is most unsatisfactory. But it is the method prescribed by the statute and must be followed. That being so, the amount of compensation in this case must be reduced from Rs. 1008 to a sum of Rs. 810 less the sum of Rs. 8 which had apparently been received by the workman before these proceedings. In the result therefore this appeal is allowed in part and amount awarded to the workman is reduced to Rs. 810 less the Rs. 8 already paid.

19. The respondent will be entitled to three-fourths of the costs in this Court and the costs incurred by him in the Court below the hearing fee in this Court being assessed at four gold mohurs.

20. The injunction is dissolved and the amount awarded by this Court may now be taken out by the workman.

Chakravartti, J.:— I agree.

K.S

21. Appeal partly allowed.