DHARAMRAJ SATYANARAYAN Vs. REGIONAL DIRECTOR ESIC AHMEDABAD

JUDGEMENT

(1.) Petitioner ? a permanent employee working in Ambica Mills Co. Ltd. Ahmedabad ? was insured under the Employees State Insurance Scheme. His monthly remuneration was about Rs. 600/. On 21-3-1980 he met with an accident in the course of his employment within the premises of the Mill Co. and lost one phalank of his right thumb. The Medical Board assessed the percentage of loss of earning capacity at 20%. The permanent disability was consequently computed at Rs. 2.50 per day. It means that the petitioner was found entitled to compensation at the rate of Rs. 2.50 per day during his life time. A permanent disablement benefit at the rate of Rs. 2.50 per day should have been commuted as a lumpsum payment. This was not done by the Corporation. The Corporation relied on Regulation 76-B of the Employees' State Insurance (General) Regulations, 1950 (hereinafter referred to as the Regulations) in support of their stand that the petitioner is not entitled to commutation on the basis of periodical disablement benefit because the benefit exceeds Rs. 1.50 per day fixed thereunder.

(2.) The main argument advanced by the learned Advocate representing the petitioner, is that the denial of benefit of commutation to persons who get permanent disablement benefit exceeding Rs. 1.50 per day is arbitrary. On this basis he prayed for issuance of a writ of mandamus directing commutation of disablement benefit of the petitioner at the rate of Rs. 2.50 per day and to pay a sum of Rs. 12,000/- as lumpsum grant.

(3.) The petitioner has produced a statement showing comparison of Consumer Price Index number and amount of Dearness Allowance in Ahmedabad and Bombay from 1940 to 1981. The Consumer Price Index in 1940 was 79 and the amount of dearness allowance payable in that year at Ahmedabad was Rs. 1.99 in 1981, the Consumer Price Index rose to 1306. Therefore, there should have been corresponding increase in the amount of dearness allowance as well. The learned Counsel argued that commutation of disablement benefit was allowed on Rs. 1,50 in 1950. The same commutation could not have been continued in 1981 when the petitioner was to get his disablement benefit computed. In 1950 the Consumer Price Index was at 259 and the Dearness Allowance was 71.39. In 1978 they became 1011 and 360.61 respectively. So the communication of disablement benefit in 1981 should have been proportionally increased and respondents were not justified in denying such commutation on the ground that commutation of the benefit of above Rs. 1.50 per day is impermissible.