Amputation at the shoulder joint carries 90% loss of earning capacity under Schedule I.

On 8 January 1997, the appellant, a semi-skilled electrical worker, was electrocuted while working on an electric pole after the supply was unexpectedly restored.

His left upper limb was amputated from the shoulder joint, and he sustained other injuries.

The Commissioner under the Workmen’s Compensation Act awarded Rs. 1,21,619 with 9% simple interest from the date of the claim application.

The claimant appealed, contending that the disability and interest had been assessed too low.

Whether the claimant’s loss of earning capacity should have been assessed at 90%, rather than 60%, in light of the amputation and Part II of Schedule I to the Employees’ Compensation Act, 1923.

Whether the interest rate on the compensation should be enhanced from 9% to 12% per annum under Section 4A(3) of the Act.

Under Part II of Schedule I to the Employees’ Compensation Act, 1923, amputation at the shoulder joint corresponds to 90% loss of earning capacity.

Section 4A(3) of the Act entitles the claimant to simple interest at 12% per annum, as applied by the Court in this case.

The compensation calculation applied the statutory factor for the claimant’s age to 60% of his monthly wages and the assessed percentage loss of earning capacity.

The medical evidence established that the claimant’s left upper limb had been amputated from the shoulder joint; the doctor also certified 100% disability of the body as a whole.

The Court held that the Commissioner’s 60% assessment failed to give effect to the specific 90% loss-of-earning-capacity figure in Part II of Schedule I and assessed the claimant’s loss at 90%.

The monthly income of Rs. 1,500 and age factor of 225.22 were not challenged; applying the statutory 60% wage basis and 90% loss figure, the Court recalculated compensation and enhanced the interest rate under Section 4A(3).

The Court assessed loss of earning capacity at 90%, awarded additional compensation of Rs. 60,809, and enhanced simple interest from 9% to 12% per annum from the date of filing the claim application until realization.

The respondents were held jointly and severally liable, and were directed to deposit the compensation within four weeks for disbursement after verification.