{"id":243511,"date":"2007-12-05T00:00:00","date_gmt":"2007-12-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/new-indi-assurance-co-ltd-vs-k-muhammedkunhi-on-5-december-2007"},"modified":"2016-12-18T01:18:07","modified_gmt":"2016-12-17T19:48:07","slug":"new-indi-assurance-co-ltd-vs-k-muhammedkunhi-on-5-december-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/new-indi-assurance-co-ltd-vs-k-muhammedkunhi-on-5-december-2007","title":{"rendered":"New Indi Assurance Co.Ltd vs K.Muhammedkunhi on 5 December, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">New Indi Assurance Co.Ltd vs K.Muhammedkunhi on 5 December, 2007<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nMFA No. 905 of 2001(C)\n\n\n\n1. NEW INDI ASSURANCE CO.LTD\n                      ...  Petitioner\n\n                        Vs\n\n1. K.MUHAMMEDKUNHI\n                       ...       Respondent\n\n                For Petitioner  :SRI.THOMAS MATHEW NELLIMOOTTIL\n\n                For Respondent  :SRI.T.MADHU\n\nThe Hon'ble MR. Justice J.B.KOSHY\nThe Hon'ble MRS. Justice K.HEMA\n\n Dated :05\/12\/2007\n\n O R D E R\n<\/pre>\n<p>                     J.B. Koshy &amp; K.Hema, JJ.\n<\/p>\n<p>                 &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                    M.F.A.No. 905 of 2001\n<\/p>\n<p>                &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n        Dated this the 5th day of December, 2007<\/p>\n<p>                              Judgment<\/p>\n<p>Koshy,J.\n<\/p>\n<p>            First respondent in this appeal filed an application for<\/p>\n<p>compensation      before     the   Commissioner       for   Workmen&#8217;s<\/p>\n<p>Compensation contending that he sustained serious injuries in an<\/p>\n<p>accident during the course of employment. He was aged 33 years<\/p>\n<p>and was having a monthly income of Rs.2,500\/-.             The wound<\/p>\n<p>certificate shows that he sustained the injuries as a result of the<\/p>\n<p>accident.     He claimed an amount of Rs.2,00,000\/-.                 The<\/p>\n<p>Commissioner calculated an amount of Rs.98,856\/- with interest at<\/p>\n<p>the rate of 12% from the date of accident till the date of passing the<\/p>\n<p>award. Interest payable till the date was Rs.61,291\/- and thus total<\/p>\n<p>compensation was Rs.1,60,147\/-. It is also stated that if the amount<\/p>\n<p>is not deposited within the time, the claimants are also entitled to<\/p>\n<p>get interest at the rate of 12% for default till deposit. Disability was<\/p>\n<p>assessed at 40%. The claimant who was examined as AW1 gave<\/p>\n<p>evidence that he was a driver by profession and because of the<\/p>\n<p>accident, he is unable to drive and he is entitled to compensation for<\/p>\n<p><span class=\"hidden_text\">M.F.A.No.905\/2001                    2<\/span><\/p>\n<p>100% loss of earning capacity. AW2 doctor who issued the medical<\/p>\n<p>certificate deposed that he had disability of 50%. He has ankylosis<\/p>\n<p>of Rt. knee joint following the injury and infection. He deposed that<\/p>\n<p>the disability was assessed under the McBride&#8217;s scale, but,<\/p>\n<p>considering the percentage of disability of a workman, it can be<\/p>\n<p>reduced to 45%.       Under section 4 (1) (c) (ii) of the Workmen&#8217;s<\/p>\n<p>Compensation Act, Commissioner has to assess the compensation<\/p>\n<p>on the basis of the certificate issued by a qualified medical<\/p>\n<p>practitioner assessing loss of earning capacity. The Commissioner<\/p>\n<p>has assessed the compensation on the basis of the loss of earning<\/p>\n<p>capacity assessed by the medical practitioner.         Compensation<\/p>\n<p>payable under the Workmen&#8217;s Compensation Act for loss of one leg<\/p>\n<p>is 90%. Here, as a result of the accident, apart from the shortening<\/p>\n<p>of the leg, there was mal-union and he was unable to drive.<\/p>\n<p>Considering these aspects and considering the loss of earning<\/p>\n<p>capacity assessed by the doctor, the Commissioner fixed 40% as the<\/p>\n<p>loss of earning capacity. We see no ground to interfere in the same.<\/p>\n<p>              2. Commissioner has taken Rs.2000\/- as the monthly<\/p>\n<p>income as the maximum salary that can be taken into consideration<\/p>\n<p>at the time of accident though workman was earning more at the<\/p>\n<p>time of accident. Thus, compensation was calculated as follows:<\/p>\n<p><span class=\"hidden_text\">M.F.A.No.905\/2001                  3<\/span><\/p>\n<p>              2000 x 60 x 40 x 205.95 = Rs.98,856\/-.<\/p>\n<p>                    100 x 100<\/p>\n<p>              3. We note that the Commissioner has granted 12%<\/p>\n<p>interest from the date of application till the date of the award and<\/p>\n<p>thereafter, again, awarded interest at the rate 12% from the total<\/p>\n<p>amount including interest from the date of award till deposit. It is<\/p>\n<p>true that statutory interest payable is 12% from the date of<\/p>\n<p>application to the date of payment as compensation fell due when<\/p>\n<p>the accident occurred as held by the Supreme Court in KSEB v.<\/p>\n<p>Valsala (1999 (3) KLT 348 SC) as well as <a href=\"\/doc\/1640530\/\">Pratap Narain Singh Deo v.<\/p>\n<p>Srinivas Sabata and<\/a> another (AIR 1976 SC 222) and <a href=\"\/doc\/154629\/\">Maghar Singh v.<\/p>\n<p>Jashwant Singh<\/a> ((1998) 9 SCC 134). But, Commissioner cannot add<\/p>\n<p>interest upto the date of award to the compensation amount and<\/p>\n<p>then direct to pay 12% interest from the total award. Here, the<\/p>\n<p>Commissioner calculated compensation payable as Rs.98,856\/-<\/p>\n<p>which is in accordance with the provisions of the Act. Thereafter,<\/p>\n<p>the Commissioner calculated interest till the date of award as<\/p>\n<p>Rs.61,291\/- and interest was added up and total amount awarded<\/p>\n<p>was Rs.1,60,147\/- and then awarded 12% interest on Rs.1,60,147\/-<\/p>\n<p>from the date of award till the date of deposit. This is incorrect.<\/p>\n<p>This will amount to awarding interest on interest. Compensation<\/p>\n<p><span class=\"hidden_text\">M.F.A.No.905\/2001                 4<\/span><\/p>\n<p>payable will be Rs.98,856\/- with 12% simple interest per annum<\/p>\n<p>from the date of application till the date of deposit. Here, the<\/p>\n<p>amount was deposited on 12.7.2001. The appeal is disposed of<\/p>\n<p>modifying the award accordingly.\n<\/p>\n<\/p>\n<p>                                              J.B.Koshy<br \/>\n                                                Judge<\/p>\n<p>                                               K. Hema<br \/>\n                                                Judge<\/p>\n<p>vaa<\/p>\n<p><span class=\"hidden_text\">M.F.A.No.905\/2001    5<\/span><\/p>\n<p>                             J.B. KOSHY AND<br \/>\n                                    K.HEMA,JJ.\n<\/p>\n<\/p>\n<p>                       &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<br \/>\n                         M.F.A. No. 905 of 2001\n<\/p>\n<p>                       &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<\/p>\n<p>                                 Judgment<\/p>\n<p>                       Dated:5th December, 2007<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court New Indi Assurance Co.Ltd vs K.Muhammedkunhi on 5 December, 2007 IN THE HIGH COURT OF KERALA AT ERNAKULAM MFA No. 905 of 2001(C) 1. NEW INDI ASSURANCE CO.LTD &#8230; Petitioner Vs 1. K.MUHAMMEDKUNHI &#8230; Respondent For Petitioner :SRI.THOMAS MATHEW NELLIMOOTTIL For Respondent :SRI.T.MADHU The Hon&#8217;ble MR. Justice J.B.KOSHY The Hon&#8217;ble MRS. Justice [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-243511","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New Indi Assurance Co.Ltd vs K.Muhammedkunhi on 5 December, 2007 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/new-indi-assurance-co-ltd-vs-k-muhammedkunhi-on-5-december-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Indi Assurance Co.Ltd vs K.Muhammedkunhi on 5 December, 2007 - Free Judgements of Supreme Court &amp; 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