The liability to pay compensation accrued on the date of the accident, and the law as on the date of the accident should be applied in computing the quantum of compensation.

Balakrishnan, J.

This is an appeal filed by the Oriental Insurance Company against the order dated 20.12.1995 passed by the Commissioner for Workmen's Compensation (Deputy Labour Commissioner), Kozhikode in W.C. Case No. 320 of 1993. The respondent was a loading and unloading worker in Lorry KRD 2929 owned by one Basheer. On 29.1.1990 at about 11.15 A.M. while the respondent was engaged in work in the lorry, he fell down from the lorry. As a result of the accident, the respondent sustained injuries to his spine and neck. He alleged that his monthly wages was Rs. 1500/-. He claimed a compensation of Rs. 1,20,000/-.

2. The respondent was examined by the Commissioner and the medical certificates produced were also perused by the Commissioner. After considering the evidence on record, the Commissioner came to the conclusion that a sum of Rs. 1,87,182/- is to be paid as compensation. It is also stipulated that the said amount is to be paid within 30 days and in default the said amount will carry simple interest at the rate of 12% per annum from the date of filing of the application.

3. In the appeal, preferred by the Insurance Company, it is alleged that the Commissioner was not justified in holding that there was total disablement as the medical certificate (Ext. a9 ) showed only disability to the extent of 55%. It was also alleged that the Commissioner erred in calculating the compensation payable to the respondent on the basis of the amended provision of "S.4 of the Workmen's Compensation Act. According to the appellant, the compensation payable to the respondent should have been fixed on the basis of the unamended provisions of S.4 of the Act, as the accident occurred on 29-1-1990 and the Workmen's Compensation (Amendment) Act, 1995 (Act 30 of 1995) came into effect only on 15.9.1995.

4. We heard counsel for the appellant as also counsel for the respondent.

5. As regards the percentage of disability, there cannot be any dispute because the matter was referred to the Medical Board attached to the District Hospital, Koznikode and a certificate dated 28.1.1997 has been issued by the Medical Board. In the report, itis stated that the respondent is having old cervical spine injury with quadre-paresis and the loss of earning capacity as a loading and unloading worker is 100%. In view of the certificate issued by the Medical Board, we hold that the permanent disability of the respondent is hundred percentage and the Commissioner was justified in assessing the disability at 100%.

6. The next question that arises for consideration is whether the respondent is entitled to get compensation on the basis of the amended Act or on the basis of the law that was in force as on 29.1.1990, the date of the accident.

7. A Division Bench of this Court considered this question in Oriental Insurance Co. Ltd. v. Majeed(1996 (2) KLT 1022). It was held that Ss.4 and 5 of the Amending Act came into force on 15.9.1995 and therefore, they have no retrospective effect from a date prior to 15.9.1995. It was also held that the liability to pay compensation accrued on the date of the accident and that the law as on the date of the accident shall be applied in computing the jaunted of compensation. Counsel for the respondent has brought to our notice a decision of the Supreme Court in Civil Appeal Nos. 16904-16909 of 1996 dated 6.11.1996. That was a case where the workmen were drawing wages at the rate of Rs. 1800 per month. The Insurance Company contended that the compensation should be fixed on the basis of the income of the workers at Rs. 1000/-per month. It was argued that the law operating on the date was applicable and as such the heirs of the workmen were not entitled to the benefit of the amendment. But, this plea was rejected by the Honourable Supreme Court in the following manner:

"We are finally determining the rights of the workmen today. The Act is a special legislation for the benefit of the labour. Keeping in view the scheme of the Act we are