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Karnataka High Court

National Insurance Co.Ltd., vs Somashekar on 21 November, 2012

Author: N.Ananda

Bench: N. Ananda

                                 1


   IN THE HIGH COURT OF KARNATAKA AT BANGALORE

      DATED THIS THE 21ST DAY OF NOVEMBER 2012

                             BEFORE

           THE HON'BLE MR.JUSTICE N. ANANDA

    M.F.A. No.8442/2009 C/W M.F.A.Nos.8443/2009 TO
                M.F.A.No.8445/2009 (WC)

BETWEEN:
National Insurance Co. Ltd.
Davanagere D.O.
Through its Regional Office
#144, Subharam Complex
M.G.Road, Bangalore - 560 001
Rep. by its Administrative Officer
Mr.Khaja Pasha.                           ... Common Appellant

(By Sri B.C.Seetharama Rao, Advocate)

MFA.No.8442/2009
AND:
1. Sri Somashekar
   S/o Mallappa, 46 Years
   R/o Yaragunte,
   Davanagere District.

2. Sri N.V.Kaliyappa, Major
   S/o late Veerappa Goudar
   R/o Adivala, At & Post
   Hiriyur Taluk, Chitradurga District
   (Onwer of T T Unit No.KA.16/T-900-901).       ... Respondents

(By M/s.Lawyers Net, Advocates for R1; R2 - Served)

     This appeal is filed under Section 30 (1) of Workmen's
Compensation Act, against the order dated 26.08.2009, passed in
CWD:WCA:CR.55/2005, on the file of the Labour Officer and
Commissioner for Workmen's Compensation, Davanagere District,
Davanagere, awarding compensation with interest and etc.
                                2


MFA.No.8443/2009
AND:
1. Sri Ananda
   S/o Veerabhadrappa, 23 Years
   R/o Nittuvalli
   Davanagere District.

2. Sri N.V.Kaliyappa, Major
   S/o late Veerappa Goudar
   R/o Adivala, At & Post
   Hiriyur Taluk, Chitradurga District
   (Onwer of T T Unit No.KA.16/T-900-901). ... Respondents

(By M/s.Lawyers Net, Advocates for R1; R2 - Served)

     This appeal is filed under Section 30 (1) of Workmen's
Compensation Act, against the order dated 26.08.2009, passed in
CWD:WCA:CR.56/2005, on the file of the Labour Officer and
Commissioner for Workmen's Compensation, Davanagere District,
Davanagere, awarding compensation with interest and etc.

MFA.No.8444/2009
AND:
1. Sri Govindappa
   S/o Govindappa, 39 Years
   R/o Industrial Area
   Davanagere
   Now r/at Kurki
   Hiriyur Taluk.

2. Sri N.V.Kaliyappa, Major
   S/o late Veerappa Goudar
   R/o Adivala, At & Post
   Hiriyur Taluk, Chitradurga District
   (Onwer of T T Unit No.KA.16/T-900-901). ... Respondents

(By M/s.Lawyers Net, Advocates for R1; R2 - Served)

     This appeal is filed under Section 30 (1) of Workmen's
Compensation Act, against the order dated 26.08.2009, passed in
CWD:WCA:CR.57/2005, on the file of the Labour Officer and
Commissioner for Workmen's Compensation, Davanagere District,
Davanagere, awarding compensation with interest and etc.
                                 3


MFA.No.8445/2009
AND:
1. Sri Krishnappa
   S/o Mukundappa, 24 Years
   R/o Yaragunte
   Davanagere Town
   Now r/at Suragondanahalli
   Hiriyur Taluk.

2. Sri N.V.Kaliyappa, Major
   S/o late Veerappa Goudar
   R/o Adivala, At & Post
   Hiriyur Taluk, Chitradurga District
   (Onwer of T T Unit No.KA.16/T-900-901). ... Respondents

(By M/s.Lawyers Net, Advocates for R1; R2 - Served)

     This appeal is filed under Section 30(1) of Workmen's
Compensation Act, against the order dated 26.08.2009, passed in
CWD:WCA:CR.58/2005, on the file of the Labour Officer and
Commissioner for Workmen's Compensation, Davanagere District,
Davanagere, awarding compensation with interest and etc.

       These appeals coming on for admission this day, the Court
delivered the following:

                         JUDGMENT

In these appeals, the insurance company has raised following substantial questions of law:

i) Whether the Commissioner acted contrary to the law and terms of policy in making the appellant liable to pay the compensation assessed in favour of the first respondent who alleges to have suffered injured in the accident while being carried in the agricultural tractor-trailer unit in which no workman, except a driver is permitted to travel ? 4
ii) Whether the Commissioner acted judiciously in relying upon the misrepresented oral evidence of the first respondent and the Medical Practitioner?
iii) Whether the Commissioner was justified in ignoring the statutory provision of Rule 2 of Central Motor Vehicle Rules and Rule 100 (6) of the Karnataka Motor Vehicle Rules before considering the liability of the appellant?
iv) Whether the Commissioner acted lawfully in granting interest at 12% p.a., on the compensation amount from 15/01/2005 by ignoring the law laid down by the Hon'ble Supreme Court in the case of Oriental Insurance Co. -vs- Mohammed Nisar, 2009 AIR SCW 3717 ?

2. In view of the Division Bench Judgment of this court, reported in ILR 2011 KAR 4139 (in the case of National Insurance Company Limited Vs. Sri Maruthi and others), the insurance company has got statutory liability to cover the risk of loaders subject to Rule 100 of the Motor Vehicles Act. Therefore, the insurance company has statutory liability to pay compensation for three loaders. 5

3. The insurance company has contended that, interest should not have been awarded after 30 days from the date of accident.

4. In view of the judgment of Supreme Court in Civil appeal No.5669/2012 dated 31.07.2012 (in the case of the Oriental Insurance Co.Ltd., -vs- Siby George and Others) the contention of learned counsel for insurance company that interest should not have been awarded after 30 days from the date of accident cannot be accepted.

5. On re-appreciation of medical evidence, nature of injuries and permanent physical disability vis-à-vis loss of earning capacity, I find no reasons to interfere with the findings recorded by the Commissioner for Workmen's Compensation.

6. The claimants in WCA/CR 55/2005, 56/2005, 57/2005 and 58/2005 have been awarded compensation of Rs.1,12,449/-, Rs.1,01,349/-, 88,677/- and Rs.1,00,800/- respectively. The insurance company is bound to satisfy the highest of three awards amongst the four. The amount 6 deposited by the insurance company in respect of WCA/CR 55/2005, 56/2005 and 58/2005 shall be rateably distributed amongst the claimants in WCA/CR 55/2005, 56/2005 and 58/2005. The compensation awarded in WCA/CR 57/2005 shall be paid by the insured (second respondent herein).

7. Therefore, I pass the following:

ORDER
i) MFA Nos.8442/2009, 8443/2009 and 8445/2009 are dismissed.
ii) MFA No.8444/2009 is accepted. The insurance company is exonerated of its liability to pay compensation.
iii) The amount deposited in MFA Nos.8442/2009, 8443/2009 and 8445/2009 shall be transferred to the Commissioner for Workmen's Compensation for rateable distribution amongst claimants in WCA/CR 55/2005, 56/2005 and 58/2005.
7
ii) The compensation of Rs.88,677/- with interest determined by the Commissioner in WCA/CR 57/2005 shall be paid by the second respondent (owner of insured vehicle) which again shall be rateably distributed amongst all the claimants.
iv) The amount deposited by the insurance company in MFA 8444/2009 shall be refunded to the insurance company.

Sd/-

JUDGE Np/-