{"id":347765,"date":"2025-05-14T13:00:47","date_gmt":"2025-05-14T07:30:47","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=347765"},"modified":"2025-05-16T17:52:00","modified_gmt":"2025-05-16T12:22:00","slug":"departure-from-schedule-employees-compensation-act-functional-disability-sc-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/05\/14\/departure-from-schedule-employees-compensation-act-functional-disability-sc-legal-news\/","title":{"rendered":"There can be a departure from the Schedule of Employees’ Compensation Act, 1923 in deciding functional disability: Supreme Court"},"content":{"rendered":"
\n

Supreme court:<\/span> In a Special Leave Petition filed by the appellant against the reduction of the disability as per the Employees’ Compensation Act, 1923<\/a>, the division bench of Sudhanshu Dhulia and K. Vinod Chandran*<\/span>, JJ., while allowing the appeal, relied on Oriental Insurance Co. Ltd v. Mohd. Nasir<\/span>, (2009) 6 SCC 280<\/a> wherein the Court had pointed out that Motor Vehicles Act created a legal fiction insofar as permitting reference to Schedule I<\/a> of the Workmen’s Compensation Act, 1923<\/a>, and held that it is not as if there can never be a departure from the Schedule in deciding the functional disability, which it has been recognised would in certain cases have a corelation with the physical disability.<\/p>\n

BACKGROUND<\/h3>\n

The appellant was an employee engaged to operate a forging machine. One day, a part of the machine fell on his hand and while he was removing the band of the handle lock, his right hand was caught in the machine. He was admitted to a hospital and remained there for around eighteen days; he underwent surgery and lost one phalanx of the little finger, two phalanges of the ring finger, three phalanges of the middle finger and two and a half phalanges of the index finger.<\/p>\n

The loss of phalanges of each of the fingers are specifically noticed in the Schedule to the Act wherein the loss of earning capacity also has been determined, totalling which, loss of earning capacity occasioned to the employee is determined. The High Court found that the disability is only to the extent of 34%. Many decisions with respect to functional disability were referred to and they were distinguished on the ground that those were with respect to motor accident claims whereas in the present case, the loss has been statutorily determined.<\/p>\n

ISSUES<\/h3>\n

(I) Whether the High Court erred in mechanically applying the percentages listed in Schedule I without evaluating actual functional disability.<\/p>\n

(II) Whether the appellant’s loss of earning capacity, considering the nature of his work and the injuries sustained, justified a higher disability.<\/p>\n

(III) Whether compensation ought to be computed based solely on the statutory percentage or should also consider actual functional loss.<\/p>\n

DECISION & ANALYSIS<\/h3>\n

The Supreme Court relied on its previous judgement in the case of Oriental Insurance Co. (supra) wherein in was held that both the Workmen’s Compensation Act, 1923<\/a> and the Motor Vehicles Act, 1988<\/a> are beneficial legislations aimed at providing expeditious relief to the victims of accidents; in the former to employees and in the latter to third parties. It was further held in Oriental Insurance (supra) that the statutes deserve liberal construction, tand that when injuries are specified in Schedule I and the mode and manner for calculating the amount of compensation is also stipulated, the same would be applicable.<\/p>\n

After noticing Explanation 1 to Section 4<\/a> of the 1923 Act<\/a>, the Supreme Court further held that ‘it is also beyond any doubt or dispute that while determining the amount of loss of earning capacity, the Tribunal or the High Court must record reasons for arriving at their conclusion.’).<\/p>\n

In the present case, appellant’s four fingers of the same hand were affected. The Court first noticed that there is no loss assessment for amputation of two and a half phalanges of the index finger as per the Schedule, which in any event has to be taken as a whole loss for which the disability is 14%. Hence, in any event, the disability even as determined by the Schedule to the 1923 Act would be 37% aggregating the total loss.<\/p>\n

The disability as determined by the statute is for the specific loss of a phalanx or a finger and in the event of more than one such loss it cannot be said that a mere aggregation would determine the actual loss. The Court pointed out that the appellant’s working hand has been seriously mutilated by the loss of one or more phalanges of four fingers. Though a 100% disability could not be assessed as the mutilation of the one hand which is also the operational hand, the right hand, the Court was thus inclined to determine the loss at 50%.<\/p>\n

Consequently, the Appeal was allowed.<\/p>\n

<\/p>\n

\n

CASE DETAILS<\/p>\n\n\n\n\n<\/colgroup>\n\n\n
\n

Citation:<\/span>
2025 SCC OnLine SC 978<\/a><\/span><\/p>\n

Appellants :<\/span>
Kamal Dev Prasad<\/p>\n

Respondents :<\/span>
Mahesh Forge<\/p>\n<\/td>\n

\n

Advocates who appeared in this case<\/p>\n

For Appellant(s):<\/span>
Vidya Vijaysinh Pawar<\/p>\n

For Respondent(s):<\/span>
Amol Chitale<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

CORAM :<\/span><\/p>\n

\n
\n

\"Sudhanshu
Sudhanshu Dhulia, J.<\/span><\/img><\/p>\n<\/div>\n

\n

\"K.
K. Vinod Chandran, J.<\/span><\/img><\/a><\/p>\n<\/div>\n

<\/div>\n
<\/div>\n
<\/div>\n
<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“A careful reading of the provisions clearly demonstrates that if more than one injury is caused in the same accident the amount of compensation payable under the Act shall be aggregated, but not to the extent of such aggregation exceeding the amount which would have been payable if permanent total disablement had resulted from the injuries.”<\/p>\n","protected":false},"author":3,"featured_media":347771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[46843,19811,54010,82020,72284,70060],"class_list":["post-347765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-employee-compensation","tag-employees-compensation-act","tag-employer-employee-relationship","tag-expeditious-relief","tag-functional-disability","tag-justice-k-vinod-chandran"],"yoast_head":"\nThere can be a departure from the Schedule of Employees' Compensation Act, 1923 in deciding functional disability: SC<\/title>\n<meta name=\"description\" content=\"A careful reading of the provisions clearly demonstrates that if more than one injury is caused in the same accident the amount of compensation payable under the Act shall 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He met with a vehicular accident\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Bombay High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":268500,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/06\/16\/employee-seeking-disability-compensation-under-employees-compensation-act-in-case-of-no-appointment-letter-identity-card-attendance-card-etc-was-issued-delhi-hc-decides\/","url_meta":{"origin":347765,"position":1},"title":"Is an Employee entitled to disability compensation under Employees\u2019 Compensation Act in absence appointment letter, identity card, attendance card, etc. ? Delhi HC decides","author":"Editor","date":"June 16, 2022","format":false,"excerpt":"Delhi High Court: Manoj Kumar Ohri J. dismissed the petition as the employer-employee relationship was established by a witness before the court and strict rules of evidence are not applicable in such cases.\u00a0 \u00a0\u00a0 The facts of the case are such that Respondent 1 (hereinafter, referred to as \u2018the workman\u2019)\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/Delhi-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/Delhi-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/Delhi-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/Delhi-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/Delhi-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":269442,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/02\/whether-the-workwoman-employed-in-beedi-manufacturing-process-is-covered-under-the-purview-of-employees-compensation-act-telangana-high-court-answers\/","url_meta":{"origin":347765,"position":2},"title":"Whether the workwoman employed in Beedi manufacturing process is covered under the purview of Employees’ Compensation Act? Telangana High Court answers","author":"Editor","date":"July 2, 2022","format":false,"excerpt":"\u00a0 \u00a0 Telangana High Court: M Laxman, J. allowed the appeal and remanded the matter for adjudication on merits and held that the deceased beedi worker falls under the definition of \u2018workman' as per Section 2(n)(ii) and Clause 2 of Schedule II of Employees' Compensation Act, 1923 as well as\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Telangana High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/telangana_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/telangana_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/telangana_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/telangana_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/07\/telangana_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":302695,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/30\/rpf-constable-a-railway-servant-entitled-claim-employees-compensation-act-1923-supreme-court\/","url_meta":{"origin":347765,"position":3},"title":"RPF Constable a railway servant; entitled to claim under Employees Compensation Act, 1923: Supreme Court","author":"Ridhi","date":"September 30, 2023","format":false,"excerpt":"The Supreme Court settled that the legislative intent was not there to exclude its members or their heirs from the benefits of compensation payable under the 1923 Act or the 1989 Act.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"claim under employees compensation act 1923","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/09\/claim-under-employees-compensation-act-1923.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/09\/claim-under-employees-compensation-act-1923.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/09\/claim-under-employees-compensation-act-1923.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/09\/claim-under-employees-compensation-act-1923.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":197305,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/06\/21\/an-employee-covered-under-mgnrega-is-not-entitled-to-claim-compensation-under-employees-compensation-act-1923\/","url_meta":{"origin":347765,"position":4},"title":"An \u2018employee\u2019 covered under \u2018MGNREGA\u2019 is not entitled to claim compensation under Employee\u2019s Compensation Act, 1923","author":"Bhumika Indulia","date":"June 21, 2018","format":false,"excerpt":"Tripura High Court: A Single Judge Bench of\u00a0 S. Talapatra J., addressed a petition seeking claim under the Employee\u2019s Compensation Act, 1923 by stressing upon the categories of employees constituted under the definition of \u2018employee\u2019 under Section 2(dd) of the said Act. The deceased for whom the compensation was being\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":263654,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/14\/explained-compensation-under-section-4-of-employees-compensation-act-1923-to-be-awarded-from-the-date-of-accident-or-the-date-of-commissioners-order\/","url_meta":{"origin":347765,"position":5},"title":"Explained| Compensation under Section 4 of Employee\u2019s Compensation Act, 1923 to be awarded from the date of accident or the date of Commissioner’s order?\u00a0","author":"Prachi Bhardwaj","date":"March 14, 2022","format":false,"excerpt":"Supreme Court: The bench of MR Shah* and BV Nagarathna, JJ has held that as per Section 4A of the Employee\u2019s Compensation Act, 1923, the liability to pay the compensation would arise from the date on which the deceased died for which he is entitled to the compensation and therefore,\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-108.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-108.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-108.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-108.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-108.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/347765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=347765"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/347765\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/347771"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=347765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=347765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=347765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}