Facts
The deceased, Hanumantharaya, was employed as a cleaner on respondent No. 1’s lorry. On 7 November 2017, while working and shifting coal, he complained of chest pain and died after being taken to hospital.
Source reference: p. 3His dependants claimed compensation, alleging monthly wages of ₹12,000 plus daily batta; respondent No. 1 admitted the employment relationship and that the incident occurred in the course of employment.
Source reference: pp. 4–5The Commissioner awarded ₹7,64,438, assessing monthly income at ₹7,500 and awarding interest from the date of judgment.
Source reference: p. 6The dependants appealed under Section 30(1) of the Employees’ Compensation Act, 1923, seeking enhancement.
Source reference: pp. 2, 6Issues
1. Whether the Commissioner correctly assessed the deceased’s monthly income at ₹7,500 for calculating compensation
Source reference: p. 72. Whether the Commissioner was justified in awarding interest from the date of judgment
Source reference: p. 7Law Applied
Under Section 4(1)(a) of the Employees’ Compensation Act, 1923, compensation for death is calculated as 50% of the deceased employee’s monthly wages multiplied by the relevant factor, or the statutory minimum, whichever is higher.
Source reference: pp. 8–9The Court applied the monthly-income figure of ₹8,000 under the notional income chart for 2010–2019 and used the relevant factor applicable to the deceased’s age.
Source reference: p. 8; p. 9The Court also applied the rule that interest is payable at 12% per annum after 30 days from the accident.
Source reference: p. 10Reasoning
The Court found that the applicable notional income was ₹8,000 per month, rather than the ₹7,500 assessed by the Commissioner.
Source reference: p. 8As the deceased was 32 years old, the applicable factor was 203.85; applying 50% of the monthly income (₹4,000) to that factor produced compensation of ₹8,15,400.
Source reference: pp. 9–10The Commissioner’s direction to calculate interest from the judgment date was incorrect: interest was payable at 12% per annum from 30 days after the accident, identified as 7 December 2017.
Source reference: p. 10Holding
The Court answered the income-assessment issue partly in the affirmative and the interest issue in the negative.
It allowed the appeal and modified the award, granting total compensation of ₹8,15,400 with interest at 12% per annum from 7 December 2017 until realization.
Source reference: pp. 11–12Respondents Nos. 1 and 2 were directed to deposit the compensation, interest, and costs within 30 days of receiving a certified copy of the judgment.
Source reference: pp. 11–12Acts & Sections Cited
2 provisions across 1 statute referred to in this judgment. Linked provisions open on LawLens.
Employee2
Original Court PDF
PARVATHI W/O LATE H HANUMANTHARAYAvsH JAMBAYYA S/O HONNURAPPA T H
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