High Court of KeralaSingle JudgeAppeal disposed of; 50% loss of earning capacit...

Regional Director, ESI Corporation, Trichur v. P. V. Ponnan

Case / Petition Number:Insurance Appeal No.93 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P.B.SURESH KUMAR
Judgment Date
2015-07-09
Court Decision / Holding
The appeal is allowed in part. The court holds that the loss of earning capacity of the respondent is 50% and directs the Regional Director, ESI Corporation, to disburse permanent disablement benefits on that basis within three months from the date of judgment.
Final Disposition
Appeal disposed of; 50% loss of earning capacity awarded; permanent disablement benefits to be paid within three months.

Parties to the Case

Appellants / Petitioners

  • Regional Director, ESI Corporation, Trichur

Respondents

  • P. V. Ponnan

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. T.V. Ajayakumar

Counsels for Respondents

  • • Sri. John Britto
  • • Sri. C.A. Rajeev

Case Synopsis & Summary

Regional Director, ESI Corporation, Trichur challenges an order of the Employees' Insurance Court, Alappuzha, which had directed payment of permanent disablement benefits to P. V. Ponnan after assessing his loss of earning capacity (LEC). Ponnan, a weaver at Alleppey Mats and Mattings Co-operative Society, suffered an employment injury on 16 February 1995. Temporary disablement benefits were paid from 17 to 26 February 1995. The Medical Board initially assessed LEC at 15%, but the Insurance Court, on remand, referred the matter back to the Medical Board, which later certified LEC at 30%. Following further proceedings and this Court’s earlier directions in Insurance Appeal No.13 of 2005, the Insurance Court ultimately held LEC at 100%, directing disbursement of permanent disablement benefits on that basis. The appellant contends that the liability should be determined by reference to the claimant’s earning capacity (not merely the work he was capable of performing at the time of injury), in line with Vanajakshan v. Joseph. The High Court analyses whether the respondent’s incapacity was for all work or only for certain types of work; evidence includes PW1 (the claimant), PW2 (doctor), and DW1 (Medical Board). It concludes that the respondent could not be shown to be incapable of all work he was capable of performing, and fixes the LEC at 50%, directing the Corporation to pay permanent disablement benefits within three months.

Provisions of Law Cited

Employees' State Insurance Act, Section 2(15B)Second Schedule Part ISecond Schedule Part II

Legal Doctrines & Maxims

  • Permanent total disablement doctrine under the ESI Act (definition under Section 2(15B))
  • Loss of earning capacity to be assessed with reference to earning capacity rather than the dead-end ability to perform the exact job at the time of accident (Vanajakshan v. Joseph)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that permanent disablement is governed by the statutory framework of the ESI Act, and the proper test is loss of earning capacity (LEC) rather than the claimant’s ability to perform the specific job at the time of accident. It argues that the Medical Board’s assessments (15% then 30% then 100% as guided by successive appellate directions) must be reconciled with the Vanajakshan principle that compensation must be anchored to LEC, not mere job-capability at the time of injury. The Regional Director submits that the evidence of PW1 and medical testimony show the claimant could perform some work and is not incapacitated for all work; hence 100% LEC is unsustainable and the Court should set a lower percentage reflecting partial incapacity.

Contentions of Respondents

The respondent contends that the injury resulted in a complete loss of earning capacity; the evidence (PW1, PW2, and DW1) supports 100% LEC, as the claimant cannot engage in work akin to weaving post-injury. The argument relies on the basic premise that permanent disablement must be assessed on the basis of earning capacity loss, in line with Vanajakshan and prior Board findings. It is argued that the earlier remand and the Medical Board’s assessment, culminating in 100% LEC, are consistent with the protective purpose of the Act and that reducing it to 50% would undermine the claimant’s entitlement to benefits.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Vanajakshan v. Joseph2003(2) KLT 462 (FB)PositiveThe decision is relied upon to emphasize that compensation under permanent disablement should be assessed with reference to loss of earning capacity rather than the ability to perform the exact job at the time of injury.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against Regional Director, ESI Corporation, Trichur v. P. V. Ponnan and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT:** **THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR** **THURSDAY, THE 9TH DAY OF JULY 2015/18TH ASHADHA, 1937** **Ins.APP.No. 93 of 2012 () --------------------------** **AGAINST THE JUDGMENT IN ICA.NO.7/2008 of EMPLOYEES INSURANCE COURT, ALAPPUZHA, DATED 05-03-2012.** **APPELLANT/RESPONDENT:--------------------** **THE REGIONAL DIRECTOR, ESI CORPORATION, TRICHUR.** **BY ADV.SRI.T.V.AJAYAKUMAR** ## **RESPONDENT/APPLICANT:-** **--------------------** **P.V.PONNAN, S/O.P.J.VINCENT, PALLIPARAMBIL HOUSE, KANJIRAMCHIRA, ALAPPUZHA.** **BY ADV. SRI.JOHN BRITTO BY ADV. SRI.C.A.RAJEEV** **THIS INSURANCE APPEAL HAVING BEEN FINALLY HEARD ON 09-07-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** _**Kvs/-**_ ## **P.B.SURESH KUMAR, J.** **= = = = = = = = = = = = = = = = =** ## **Insurance Appeal No.93 of 2012** **= = = = = = = = = = = = = = = = = Dated this the 9[th] day of July, 2015.** **J U D G M E N T** The decision of the Employees' Insurance Court, Alappuzha in I.C.A.No.7 of 2008 is under challenge in this appeal. The Regional Director of the Employees State Insurance Corporation ('the Corporation' for short), is the appellant. 2. The respondent was a weaver in M/s.Alleppey Mats and Mattings Co-operative Society. The said establishment was covered by the Employees' State Insurance Act ('the Act' for short). The respondent sustained an employment injury on 16.2.1995. Consequently, the respondent was paid temporary disablement benefits by the Corporation for the period from 17.2.1995 to 26.2.1995. Later, he was referred to the Employment State Insurance Medical Board for assessing loss of earning capacity for the purpose of considering his claim for permanent disablement benefits. The Medical Board assessed **Ins.Appeal No.93/2012.** 2 the loss of earning capacity of the respondent at 15%. The respondent challenged the assessment of the loss of earning capacity made by the Medical Board before the Employees' Insurance Court in I.C.A.No.3 of 1996. The Employees' Insurance Court held that the loss of earning capacity of the respondent should have been assessed by the Medical Board at 100% and consequently directed the Corporation to disburse to the claimant the permanent disablement benefits on that basis. The decision of the Employees' Insurance Court in I.C.A.No.3 of 1996 was challenged by the Corporation before this Court in M.F.A.No.1315 of 1998. The said appeal was allowed and the matter was remitted to the Insurance Court for fresh disposal. Thereupon, the Insurance Court again referred the matter to the Medical Board to assess the loss of earning capacity of the respondent. On the second occasion, the Medical Board certified the loss of earning capacity of the respondent at 30%. On receipt of the said decision of the Medical Board, the Insurance Court disposed of I.C.A.No.3 of 1996 directing the Corporation to disburse the respondent the permanent disablement benefits **Ins.Appeal No.93/2012.** 3 reckoning his loss of earning capacity at 30%. The matter was taken up by the respondent before this Court in Insurance Appeal No.13 of 2005. This Court disposed of Insurance Appeal No.13 of 2005 directing the Insurance Court to decide the case afresh in the light of the decision of this Court reported in **Vanajakshan v. Joseph** [2003(2) KLT 462)(FB)]. In the light of the decision of this Court in Insurance Appeal No.13 of 2005, the matter was considered by the Insurance Court and as per the impugned decision, the Insurance Court declared that the of loss earning capacity of the respondent is 100%. Consequent orders were also issued directing the Corporation to grant disablement benefits to the respondent on that basis. The Corporation is aggrieved by the said decision of the Insurance Court and hence this appeal. 3. Heard the learned counsel for the appellant as also the learned counsel for the respondent. 4. The claim of the respondent is for permanent disablement benefits under the Act. Permanent total disablement is defined under Section 2(15B) of the Act which reads thus: **Ins.Appeal No.93/2012.** 4 “Permanent total disablement” means such disablement of a permanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident in such disablement: Provided that permanent total disablement shall be deemed to result from every injury specified in Part I of the Second Schedule or from any combination of injuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts to one hundred per cent or more.” It is clear from the said definition that only the disablement of permanent nature as incapacitates an employee for all work which he was capable of performing at the time of injury, can be regarded as permanent total disablement. In **Vanajakshan's case** (supra), in the context of the Workmen's Compensation Act, this Court held that compensation has to be assessed by the competent authority with reference to the loss of earning capacity and not based on the ability of the claimant to perform the duties of the job he was performing at the time of accident. Since this Court had directed that the case of the respondent for permanent disablement benefits shall be considered in the light of the decision in **Vanajakshan's case** (supra), the issue to be **Ins.Appeal No.93/2012.** 5 considered is as to what extent, the earning capacity of the respondent is affected in the context of the works which he was capable of performing at the time of the employment injury. 5. The respondent gave evidence as PW1. He deposed that he does not know any work other than the work of the weaver. Though he was cross-examined by the learned counsel for the Corporation, there was no suggestion to PW1 as to the works which he was capable of doing despite the injury. In his evidence as PW1, the respondent has also stated that he was not offered any work by his employer which he is capable of doing after the injury. On the side of the respondent, he also examined a doctor as PW2. PW2 deposed that the respondent is having lumbar spondylosis and he was advised not to engage in any manual labour involving lifting of weights and bending down. The respondent has examined one of the specialist members of the Medical Board which fixed his loss of earning capacity at 15% as DW1. DW1 deposed that he conducted both physical and clinical examination of the respondent and it was found that he was incapable of doing the work in the same manner after the **Ins.Appeal No.93/2012.** 6 employment injury. DW1 also deposed that it would be difficult for the respondent to work as a weaver after he suffered the employment injury. From the available evidence, it cannot be said that the respondent is incapacitated for all the works which he was capable of performing at the time of the employment injury. I hold so not only for the reason that the respondent himself has stated that his employer has not offered any work which he is capable of doing, but also for the reason that the doctor examined on the side of the respondent has only stated that the respondent is incapable of doing only manual labour involving lifting of weights and bending down. As such, the view of the Insurance Court that the respondent is suffering from 100% loss of earning capacity cannot be sustained. From the available materials on record, I am of the view that the percentage of the loss of earning capacity of the respondent can be fixed at 50%. In the result, the appeal is disposed of holding that the loss of earning capacity of the respondent is 50% and directing the Corporation to disburse permanent disablement benefits to **Ins.Appeal No.93/2012.** 7 the respondent on that basis within three months from today. _**Sd/-**_ **P.B.SURESH KUMAR, (JUDGE)** _**Kvs/-**_ _**// true copy //**_ _**PA TO JUDGE.**_