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  • section 30 of the Workmen's Compensation Act, 1923
  • Workmen's Compensation Act, 1923,
  • provisions of section 4(1)(c)(ii).
  • provisions of section 4(1)(c).4.
  • section 4(1)(c)(ii),
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Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • section 30 of the Workmen's Compensation Act, 1923
  • Workmen's Compensation Act, 1923,
  • provisions of section 4(1)(c)(ii).
  • provisions of section 4(1)(c).4.
  • section 4(1)(c)(ii),
Smart Summary

Factual and Procedural Background

This batch of appeals filed under section 30 of the Workmen's Compensation Act, 1923, concerns the adjudication of the proper manner and methodology of proof required by the Commissioner of Workmen's Compensation in deciding claims related to non-schedule injuries under the Act. The appeals challenge impugned awards passed without following the procedure prescribed under section 4(1)(c) of the Act, specifically relating to the assessment of compensation for permanent partial disablement not specified in Schedule I of the Act.

Legal Issues Presented

  1. Whether the Commissioner of Workmen's Compensation is bound to follow the statutory procedure under section 4(1)(c)(ii) of the Workmen's Compensation Act, 1923, in assessing compensation for non-schedule injuries.
  2. Whether the assessment of the percentage of loss of earning capacity must be based on evidence of a qualified medical practitioner as mandated by the statute.
  3. Whether awards passed without examination of a qualified medical practitioner and without adherence to the statutory procedure are legally sustainable.

Arguments of the Parties

Appellant's Arguments

  • The impugned awards were passed without following the procedure prescribed under section 4(1)(c) of the Workmen's Compensation Act.
  • Assessment of compensation for non-schedule injuries requires evidence from a qualified medical practitioner to determine the proportionate loss of earning capacity.
  • In the present cases, no qualified medical practitioner was examined, which is a statutory requirement.
  • Reliance was placed on the decision in Ajit Kumar Pukan v. State of Assam and FAO/15 of 1999 (Oriental Insurance Co. Ltd. v. Sri Digen Kalita) to support these contentions.

Respondent's Arguments

The opinion does not contain a detailed account of the parties' legal arguments from the respondents.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ajit Kumar Pukan v. State of Assam, (2000) 2 GLT 571 Requirement of examination by a qualified medical practitioner for assessment of loss of earning capacity under section 4(1)(c)(ii) of the Workmen's Compensation Act. The court held this precedent as squarely applicable to the present batch of cases, emphasizing the statutory mandate for medical evidence in compensation assessment.
FAO/15 of 1999 (Oriental Insurance Co. Ltd. v. Sri Digen Kalita), decided on 17.8.2006 Supports the principle that compensation assessment for non-schedule injuries must be based on qualified medical evidence. Referenced by the appellants to bolster the argument that failure to follow this procedure invalidates the awards.

Court's Reasoning and Analysis

The court analyzed the statutory provisions under the Workmen's Compensation Act, 1923, particularly section 4(1)(c)(ii) and Explanation II, which mandates that for injuries not specified in Schedule I, the percentage of compensation must be proportionate to the loss of earning capacity as assessed by a qualified medical practitioner. The court noted that the Commissioner of Workmen's Compensation has no discretion to deviate from this statutory requirement. In the present cases, the Commissioners failed to examine a qualified medical practitioner and instead accepted certificates submitted by the workmen themselves, which is contrary to the legislative mandate. The court emphasized that the assessment procedure must be strictly adhered to as per the statute and that failure to do so results in awards that cannot be sustained in law. The court relied on the precedent in Ajit Kumar Pukan (supra) to affirm the necessity of medical evidence in such assessments. Consequently, the impugned awards were set aside, and the cases were remanded for fresh assessment following the correct statutory procedure.

Holding and Implications

The appeals are allowed.

The impugned judgments and awards are set aside and quashed due to non-compliance with the statutory procedure under section 4(1)(c)(ii) of the Workmen's Compensation Act. The cases are remanded to the respective Commissioners for fresh adjudication after taking evidence from a qualified medical practitioner as mandated by law. The decision directly affects the parties by invalidating the prior awards and requiring reassessment but does not establish any new legal precedent beyond reaffirming existing statutory requirements.

    New India Assurance Co. Ltd. v. Raj Narayan Prasad And Anr.

    1. This batch of appeal filed under section 30 of the Workmen's Compensation Act, 1923 attracts a common point of adjudication, viz., the manner and methodology of proof of the claim that requires to be adhered by the Commissioner Workmen's Compensation in deciding a claim case, in relation to, non-schedule injury under the Act.

    2. The Workmen's Compensation Act, 1923, lays down the nature and extent of liability to pay compensation by an employer in case of a workman having received injuries by accident arising out of and in course of employment which is also liable to be indemnified by the related insurance company which covers the risk of liability under section 3 of the Act.

    Section 4 of the Act provides procedure and methodology of the assessment of compensation claimed under the Act. In this appeals we are concerned with the assessment which is coverable under section 4(1)(c)(ii), contained in Explanation II of the Act.

    For our ready reference Explanation II is quoted herein below:—

    Where the monthly wages of a workman exceed 3 (four thousand rupees), his monthly wages for the purposes of clause (a) and clause (b) shall be deemed to be 3 (four thousand rupees), only;

    (c) Where permanent partial disablement result from the injury (i) in the case of an injury specified in Part II of Schedule 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; and (ii) “In the case of an injury not specified in Schedule I, such percentage of the compensation payable in the case of permanent total disablement as is proportionate to the loss of earning capacity (as assessed by the qualified medical practitioner) permanently caused by the injury;” “In assessing the loss of earning capacity for the purpose of sub-clause (ii), the qualified medical practitioner shall have due regard to the percentages of loss of earning capacity in relation to different injuries specified in Schedule I;”

    3. In this batch of cases the common allegation is that the impugned awards have been passed without following the procedure prescribed under the provisions of section 4(1)(c).

    4. I have heard Mr. S. Dutta, learned counsel for the appellant. The learned senior counsel, Mr. S.S Sharma and the other learned counsels for the appellants have also made submission on the same line. Mr. S. Dutta in support of his contention has placed reliance on the following decisions.

    1. Ajit Kumar Pukan v. State of Assam, (2000) 2 GLT 571.

    2. FAO/15 of 1999 (Oriental Insurance Co. Ltd. v. Sri Digen Kalita) decided on 17.8.2006 Also heard learned counsels for the claimant/respondent who appeared in this batch of cases.

    5. In all these cases, a qualified medical practitioner was not examined to assess the percentage of compensation payable to the claimant whose evidence is essential for unfolding proportionate loss of earning capacity of the workmen as a result of the accident.

    6. In order to assess the percentage of loss of earning capacity so far as the injuries as mentioned in Schedule (1) of the Act is concerned, the Commissioner of the Workmen's Compensation has no discretion and on proof of such injury, the necessary percentage of loss has to be fixed under the said Schedule and is to be applied. But, so far, as the injuries sustained by a workman by an accident arising out of and in course of his employment which is not mentioned in the said Schedule. The methodology for assessment of the proportionate loss of earning capacity commensurating to the percentage of disablement is to be assessed as per the assessment made by a qualified medical practitioner. Thus, the examination by the qualified medical practitioner is the statutory requirement under the provisions of section 4(1)(c)(ii). In this batch of cases, the Commissioner did not examine a qualified medical practitioner and in support of the claim of the workmen and to assess the proportionate loss of earning capacity the Legislature has thought it fit that in order to assess such loss it should be made by a qualified medical practitioner, that is the requirement of the statute. The Commissioner of the Workmen's Compensation is to order for compensation as per the mandate of the Act. It is also the principle of law that an act is to be done in the manner provided by the statute in this batch of cases also the Commissioner has no other alternative. In some of the cases, I find that the certificate said to be submitted by the workman himself was accepted and on that basis the learned Commissioner proceeded to assess the compensation. But the mandate of the Legislature as noted above is otherwise and the Commissioner is to exercise such statutory power/and duty as mandated under the Act.

    In this connection the decisions rendered in Ajit Kumar (supra) as referred by Mr. Dutta is squarely applicable.

    Similar other decisions which is passed in Ajit Kumar (supra) also holds the field.

    7. In view of the aforesaid principles of law as emanated from the statute and failure of the learned Commissioner to apply the same, assessment was made in the aforesaid cases fixing the extent of liability upon the employer, to be indemnified by the related Insurance Company cannot be sustained.

    8. The learned Commissioners decided the respective cases by adopting a procedure de hors the law.

    9. In view of the aforesaid discussion the impugned judgments and awards passed in the aforesaid appeals are not sustainable in law and these are hereby set aside and quashed.

    10. All the cases are remanded back to the court of the respective Commissioner of Workmen's Compensation, who shall pass an appropriate fresh award by taking necessary evidence of a qualified medical practitioner required under the law as indicated herein above. The cases shall be disposed of as expeditiously as possible after giving opportunities to the parties.

    11. The parties are directed to appear before the learned Commissioners on 1.12.2006 and on such appearance the cases shall be processed and proceeded as expeditiously as possible. Registry is directed to send back the connected records to the respective Commissioners forthwith.

    12. The appeals are allowed as indicated above.

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    Comments

    New India Assurance Co. Ltd. v. Raj Narayan Prasad And Anr.
    (Sep 26, 2006)