The amended provisions of Sections 4 and 4A of the Workmen's Compensation Act, 1923, as introduced by Act 30 of 1995, were intended to operate prospectively from the dates fixed by the Central Government and were not applicable to claims originating from accidents occurring prior to 15.9.1995.

Radhakrishnan, J.

The question that is posted for consideration before the Full Bench is as to whether Sections 4 and 4A of the Workmen's Compensation Act, 1923, as amended by Act 30 of f 995, enhancing the amount of compensation and rate of interest would be applicable to claims in respect of death or permanent disablement resulting from accident which occurred prior to 15.9.1995, the date on which the amendment provisions-came into-force.

2. A Division Bench of this Court in Oriental Insurance Co. Ltd. v. Majeed, 1996 (2) KLT 1022 held the benefits of S.4 and 4A as amended would be extended only in respect of claims arising out of the accident occurred on or after 15.9.1995. Same is the view taken by the same in Division Bench in Oriental Insurance Co. Ltd. v. Abdul Nazar, (1997) 1 ILR 496. A contrary view was taken by another Division Bench in Oriental Insurance Co. Ltd. v. Asokan, 1997 (1) KLT 608. That Bench relied on a decision of the Supreme Court in Civil Appeal Nos. 16904 to 16909 of 1996 dated 6.11.1996, and held that the benefits of the amended provisions of Ss.4 and 4A would be available when the claim is finally adjudicated, whether the death or permanent disablement resulting from the accident occurred prior to 15.9.1995 or not. It was also held that in view of the above mentioned decision of the Supreme Court, the earlier Division Bench decision in Majeed's case is impliedly overruled. We are therefore, called upon to resolve this apparent conflict between the above mentioned two Bench decisions.

3. The Workmen's Compensation Act, 1923 was enacted to provide for payment by certain classes of employers to their workmen of compensation for injury caused to a workman by accident arising out of and in the course of his employment. Act also provides separate and speedy forum to the workmen for claiming compensation and for this purpose wide powers have been "bestowed on the Commission appointed under the Act. It is the duty of the employer or insurer, as the case may be, to pay compensation as soon as it falls due. The amount of compensation to be paid is enumerated in S.4 of the Act.

4. We shall deal with the unamended provisions of S.4(1) and Explanation II as also S.4A(3) first and then refer to the amendment effected to the above mentioned provisions by Act 30 of 1995. The unamended provisions of S.4(1) and Explanation II as also S.4A(3) read as follows:

"4. Amount of compensation: (1) Subject to the provisions of this Act, the amount of compensation shall be as follows, namely,:

(a) Where death results from the injury. An amount equal to forty percent of the monthly wages of the deceased workman multiplied by the relevant factor

or

An amount of twenty four thousand rupees, whichever is more;

(b) Where permanent total disablement An amount equal to fifty percent of the

results from the injury monthly wages of the injured workman multiplied by the relevant factor,

or

An amount of twenty four thousand rupees Which ever is more

Explanation II - Where the monthly wages of a workman exceed one thousand rupees, his monthly wages for the purposes of clause (a) and clause (b) shall be deemed to be one thousand rupees only" .

"4A. 'Compensation to be paid when due and penalty for default:

(3) Where any employer is in default in paying the compensation due under this Act within one month from the date of it fell due, the Commissioner may direct that,in addition to the amount of the arrears, simple interest at the rate of six per cent per annum on the amount due together with, if in the opinion of the Commissioner there is no justification for the delay, a further-sum not exceeding fifty percent of such amount shall be recovered from the employer by way of penalty".

5. The Workmen's Compensation (Amendment) Act (Act 30 of 1995) has brought in drastic changes to different provisions of the parent Act. By amendment to S.4(1)(a) compensation amount equal to 40% of the monthly wages of the deceased workman was enhanced to 50% and R