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Umapathy v. D.M., New India Insurance Co. Ltd.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 194 of 2016)Decided 12 Jan 2016
Civil Appeal No. 194 of 2016
Justice Anil R. Dave · Justice Adarsh Kumar Goel

Background

The appellant, an auto-rickshaw driver, suffered an eye injury in an accident and was awarded compensation by the Workmen's Compensation Commissioner. The High Court, on appeal, had reduced the amount of compensation payable to him, and he challenged that reduction before the Supreme Court.

Decision Breakdown

The Supreme Court held that the High Court ought not to have reduced the compensation, particularly given that the injury was to the appellant's eyes. It set aside the High Court's judgment and restored the Commissioner's original compensation order. However, the Court agreed with the High Court's reduction of the interest rate on the compensation amount to 7.5%, leaving that part of the High Court's order undisturbed. The appeal was disposed of as allowed, with no order as to costs.

Lesson Learnt

Courts are cautious about reducing compensation awarded to injured workers, especially for serious injuries like loss of vision in an eye; an appellate reduction of compensation can itself be challenged and overturned, even while a more technical adjustment like the interest rate may be allowed to stand.

Official source (sci.gov.in)View Judgment (PDF)

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