AI Structured Summary
Not yet generated for this judgment
No AI summary yet
Generate an eight-section analysis of this judgment — facts, issues, reasoning, ratio and a plain-language gist.
Judgment
120 paragraphs · 2,716 words1.Heard Mr. AR Agarwala, learned counsel for the appellant and also heard Mr. R. Goswami, learned counsel appearing for the respondent No.2.
This is an appeal under section 30(1)(a) of the Employees Compensation Act, 1923 (as amended) against the judgment and order dated 06.03.2014,
passed by the learned Commissioner, Employees Compensation, Guwahati, Assam, in W.C Case No. 65/2009
The brief facts and circumstances which led to the filing of this appeal are as follows; The appellant/claimant, aged about 28 years only, who was
employed as a driver by the respondent No.1, owner of the Mini-bus bearing Registration No. ML-08/A-2082, on a monthly salary claimed to be Rs.
12,000/- while on duty on 13.05.2007 met with an accident near Garobadha at about 1:00 p.m. of the same day. As a result of the accident, the
appellant sustained injuries over his body including facture of his right arm, hip and spine. He was immediately taken to Garobdha Public Hospital
Centre from where he was referred to Tura Civil Hospital, but from there also he was again taken to Goalpara Civil Hospital wherein he was finally
treated from 26.05.2007 to 29.08.2007. After his treatment was over the appellant/claimant filed a claim case before the learned Commissioner,
Workmen’s Compensation, Guwahati, claiming a compensation to the tune of Rs. 8,00,000/- with interest and penalty. The respondent No.1 i.e.
owner of the vehicle did not enter appearance but the respondent No. 2/Insurance Company with whom the vehicle was insured entered appearance
and contested the claim by filing a written statement. After evidence were taken and the parties were heard, the learned Commissioner passed the
award as follows;
“AWARD/ORDER
In the light of the above discussions and decision, the claimant Md. Sikandar Hussain, driver of the vehicle No. ML-08/A-2082 (Mini bus) is awarded
a compensation of Rs. 12,000/- (Rupees twelve thousand) only on account of personal injuries sustained by him in the vehicular accident arising out of
and in course of his employment under O.P. No. 1. The O.P No. 2 i.e. the New Assurance Co. Ltd. Is hereby directed to deposit the said amount
with the undersigned within 30(thrity) days from the date of received of this order for disbursement to the claimant. In default, the Insurance Co. will
be liable to pay an interest @ 12% per annum in addition to the aforesaid awarded compensation amount. Issued under my hand and seal of this Court
on this 6th day of March, 2014. Let a copy of the order be sent to the parties concerned for compliance.
(J.N. Pegu)
Commissioner for Workmen’s
Compensation Kamrup, Ulubari, Guwahati-7.â€
Not satisfied with the award, the appellant/claimant has come to this Court filing the present appeal.
Mr. A.R Agarwala, learned counsel for the appellant submitted that the appeal is limited to non-consideration of the medical expense incurred by
the appellant/claimant and against the conclusion drawn by the Tribunal in respect of the year of disability and non inclusion of daily allowance of the
appellant/claimant as in the reckoning of his income. However, after having submitted to some length, Mr. Agarwala abundant his other claims but
confined only to the claim that the daily allowance of the appellant/claimant should be included in his income. Mr. Agarawal in support of his
submission referred to the judgment of this High Court passed in the case of Oriental Insurance Company Ltd., -Vrs- Usha Devi Bhuyan & Anr.,
reported in (2014) 3 NEJ 337(Gau). The relevant portion referred by the learned counsel is at paras-4 to 9. The same is reproduced here below;-
“4. Mr. S.K. Goswami, learned counsel appearing for the petitioner submitted that the finding as regards the monthly wage of the deceased
workmen cannot be sustained as the monthly wage has been assessed by including the daily allowance. The Commissioner, Workmen's Compensation
has observed that the wife of the deceased workmen has categorically stated that her husband was employed as a driver in the vehicle under
registration No.AS-02/A-2725 a Tata Sumo, owned by the respondent No.2 at a monthly salary of Rs.2,000 in addition to the daily allowance of @
Rs.50 per day. She further stated that her husband was sent to Jorhat by his employer to drop some persons and her husband became untraced from
then and later on his dead body was found near the bank of Bhogdoi river.
Mr. S.K. Goswami's contention is that the inclusion of the daily allowances is completely unacceptable in view of the decision of this court in
Oriental Insurance Co. Ltd. v. Lakhimai Das and Anr., 2006 (3) GLT 870 where this court has held as under :
It is clear from herein above that a sum of amount paid to a workman to cover any special expenses entailed on him by the nature of his
employment is not included in his ""wages"" for the purpose of the Act. From the nature of the employment of the deceased, we have no hesitation to
hold that the daily allowances by the claimant in her deposition would not form a part of the wages as defined under the Act. On a moderate estimate,
we may take that a daily allowance of Rs.20 was paid to the deceased. Resultants an amount of Rs.600 can be safely deducted from the amount
quoted by the claimant to be the income of the'deceased per month. According to us, therefore, the wages for the purpose of computing the
compensation for the death of the deceased has to be taken as Rs.3,000 per month. We are, therefore, of the view that the learned commissioners had
erred in law and on facts in proceeding on the basis that the monthly wages of the deceased at the relevant time was Rs.3,500.
This court has given an anxious consideration to the submission of Mr. Goswami, learned counsel and has also critically examined the decision of
Lakhimai Das (supra). In Lakhimai Das (supra) this High Court did not lay down any principle but has interpreted the provisions of law in the
attendant circumstances of that particular case and held that a sum of amount paid to a workman to cover any special expenses entailed on him by the
nature of his would not include in his ""wages"" for the purpose of determining the compensation. The said interpretation does not restrict in any manner
the definition of the ""wages"" as provided in section 2(m) of the workmen's compensation act, 1923which stipulates as under : '"" Wages"" includes any
privilege or benefit which is capable of being estimated in money, other than a travelling allowance or the value of any travelling concession or a
contribution paid by the employer of a workman towards any pension or provident fund or a sum paid to a workman to cover any special expenses
entailed on him by the nature of his employment.
In that case the tribunal found that the said daily allowance was a sum paid to the workman to cover the special expenses but it did not project that
the daily allowance of all natures would be excluded from the wages. The wages includes any privilege or benefit which is capable of being estimated
in money. In this regard a decision of the Apex Court in Mohd. Ameeruddin and Another v. United India Insurance Co. Ltd. and Another, (2011) 1
SCC 303 is required to be referred to. The Apex Court in Mohd. Ameeruddin (supra) held that :
We are unable to appreciate the view taken by the High Court on both counts. First, there was no evidence that the daily allowance of Rs.50 was
not paid to the deceased every day or even that he was not on work on every day of the month. On the contrary, there is evidence on record that
apart from the monthly salary of Rs.2,500 he was getting Rs.50 as daily allowance. We, therefore, hold that the tribunal was right in assessing the
monthly income of the deceased at Rs. 4,000.
In the case in hand also there is no evidence that the daily allowance as was being given to the workman was not given on everyday of the month
or he was not working on everyday of the month. Therefore, in conjoint reading of section 2(m) as excerpted with Mohd. Ameeruddin (supra), it
would be crystal clear that 'wages' would include the daily allowance unless it is demonstrated that the said allowance is a part of a sum paid to a
workman to cover any special expenses entailed on him by the nature of his employment.
The appellant in the appeal did not make any endeavour to prove that the daily allowances as paid to the workmen was a sum paid to the workmen
to cover any special expenses entailed on him by the nature of his employment. The daily allowances therefore would include within the benefit as
defined in section 2(m) of the workmen's compensation act, 1923 which is capable of being estimated in money. It is held that the daily wages of the
nature as the workman was being paid would include in the wages for the purpose of calculating the compensation for death of the workmanâ€.
Mr. R. Goswami, learned counsel appearing for the respondent submitted that there is a judgment of the Division Bench of this High Court which
stated that daily allowance should not be included in the wages of a workmen’s. Mr. Goswami referred to the judgment of the Division Bench in
the case of Oriental Insurance Company Ltd. â€"Vrs- Lakhimai Das & Ars., passed in MFA No. 3/2003, reported in 2006 (3) GLT 870. The relevant
portion of the judgment at paras-11 & 12. The content of the two paras are given here below;
“11. We have examined the pleadings of the parties and the evidence on record the state of pleadings is not in dispute we however, from the
evidence of the claimant find that she had deposed that her son at the time of his death has an income of Rs. 3,600/- per month including daily
allowances. It is thus abundantly clear from the testimony of the claimant that the amount of Rs. 3,600/- included daily allowances. The question
therefore is whether in ascertaining the wages of the deceased, the daily allowances can be taken note of. The definition of ‘wages’ as
provided in section 2(m) of the Act is quoted herein below ;2(m) ‘wagesâ€, includes any privilege or benefit which is capable of being estimated in
money, other than a travelling allowance of the value of any travelling concession or a contribution paid by the employer of a workman towards any
pension or provident fund or a sum paid to a workman to cover any special expenses entailed on his by the nature of his employment.
It is clear from herein above that a sum of amount paid to a workman to cover any special expenses entailed on him by the nature of his
employment is not included in his ‘wages’ for the purpose of the Act. From the nature of the employment of the deceased, we have no
hesitation to hold that the daily allowances referred to by the claimant in her deposition would not form a part of the wages as defined under the Act.
On a moderate estimate, we may take that a daily allowance of Rs. 20/- was paid to the deceased. Resultants an amount of Rs, 600/- can be safely
deducted from the amount quoted by the claimant to be the income of the deceased per month. According to us, therefore, the wages for the purpose
of computing the compensation for the death of the deceased has to be taken as Rs. 3000/- per month. We are, therefore, of the view that the learned
commissioners had erred in law and on facts in proceeding on the basis the monthly wages of the deceased at the relevant time was Rs. 3,500/-.â€
Mr. Goswami also submitted that as per the explanation No. 2 of section 4 of the Workmen’s Compensation Act, 1923 in any case the wages
of the workmen for the purpose of compensation under the Act cannot exceed Rs. 4,000/-. Since the accident took place in 2007 when the said law
was applicable the claim of the appellant/claimant that his wage should have been taken as Rs. 12,000/- inclusive of his daily allowance cannot be
allowed.
As for the interest, both the learned counsels submitted that it should be with effect from the day 1(one) month’s time counting from the date of
judgment expires.
I have considered the rival submissions of both the learned counsels and also noted the point on which they agreed with each other. On careful
perusal of the judgment passed by the learned Single Judge in the case of Oriental Insurance Company Ltd., -Vrs- Usha Devi Bhuyan & Anr., cited
by the learned counsel for the appellant including the judgment cited by the learned counsel of the respondents passed by a Division Bench of this
High Court in the case of Oriental Insurance Company Ltd. â€"Vrs- Lakhimai Das & Ars., I am of the considered view that the words of Section
2(m) should be interpreted in such a way that it includes daily allowance. I agree with the reasons given by the learned Single Judge, therefore,
without elaborating any further I would conclude that the learned Commissioner has committed an error in not having included the daily allowance of
the appellant/claimant while computing his monthly income. However, I must quickly add here that as per the provisions of section 4 Explanation II,
the wages of the appellant/claimant cannot or should not in any way cross the ceiling limit of Rs. 4,000/- given therein. It was claimed by the
appellant/claimant that his monthly wages was Rs. 3,000/- and his daily allowance was Rs. 300/-. In his evidence, the appellant/claimant stated that he
was given Rs. 3,000/- as his monthly salary and Rs. 300/- per day as daily allowance. In support of his claim on his income he submitted and exhibited
income certificate issued by Circle Officer of Mankachar Revenue Circle who certified that his annual income was Rs. 75,000/-.But the income
certificate is only concerning annual income from agricultural sources and not related with his monthly income as Driver. However, the
appellant/claimant was not cross examined by the respondents and no evidence was also produced by them to prove otherwise. Therefore, the income
of the appellant/claimant has to be accepted as claimed by him. As such, the monthly income of the appellant/claimant at that time including his daily
allowance has to be Rs. 300x30+3000=Rs. 12,000/- However, as stated above, in view of what is given at Explanation II of section 4 the income of
the appellant/claimant is fix at Rs. 4,000/- for the purpose of calculating his entitlement under the Workmen’s Compensation Act.
Now coming to the nature of injuries and disablement suffered by the appellant/claimant, the appellant/claimant has stated in his evidence that due
to the accident he could not work for 2 years. From the nature of injuries suffered by the appellant/claimant and the agony he had gone through, I am
of the opinion that he should be given a chance of being examined by a competent Doctor as may be appropriately chosen by the Commissioner to
determine the extend of disability suffered by him so as to come to the right conclusion regarding the loss of income he had suffered or will continue to
suffer. For that the case has to be send back to the Commissioner, Workmen’s Compensation, Kamrup. Therefore, this case is remanded back to
the Commissioner, Workmen’s Compensation, Kamrup, Ulubari for causing examination of the appellant/claimant by a competent Doctor for the
purpose stated above. After the appellant has been examined the Commissioner shall give the parties to examine or cross examined the Doctor.
Thereafter, the Commissioner, taking into account what has been stated above shall determined the amount of compensation payable to the
appellant/claimant and pass appropriate judgment and award within a period of 3 months from the date of receipt of a copy of this order. With this, the
appeal is disposed. Send the LCR along with a copy of this order immediately. The parties shall appear before the Commissioner within fifteen days
from today.
