The liability to pay compensation accrued on the date of the accident, and the law applicable at the time of the accident should be used to compute the quantum of compensation.

Usha, J.

Workmen's Compensation (Amendment) Act, 1995 (Act 30 of 1995) has brought in drastic changes to different provisions of the Workmen's Compensation Act, 1923. Whether such amendment to sub-section (1) and Explanation II of Section 4 and addition of sub-section (4) to Section 4 and amendment to sub-section (3) of Section 4A will have effect on pending proceedings is the issue raised in this appeal.

2. Appeal is at the instance of Oriental Insurance Company Ltd., challenging the order passed by the Commissioner for Workmen's Compensation (Deputy Labour Commissioner), Kozhikode in W.C.C. No. 150/94. Respondents 1 and 2 are the claimants and third respondent is the employer. The son of respondents 1 and 2, who was a workman under the third respondent, died as a result of the accident happened on 16.3.1994. The only contention taken in this appeal is that the Workmen's Compensation Commissioner has committed an error in granting compensation on the basis of the provisions contained under Sections 4(l),4(4) and 4A as amended by Act 30 of 1995. According to the appellant, since the accident had happened before 15.9.1995, namely, the date on which the amendment came into force, the claimants are entitled to compensation only in accordance with the unamended provisions of Sections 4 and 4A.

3. The relevant portion of the unamended provisions of Section 4(1) and Explanation II as also Section 4-A (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 fourty percent of monthly wages of the deceased workman multiplied by the relevant factor;

or an amount of twenty thousand rupees, whichever is more;

(b) Where permanent total disablement results from the enjury an amount equal to fifty percent of the injury monthly wages of the injured workman multiplied by the relevant factor;

or an amount of twenty-four thousand rupees whichever 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 it fell due, the Commissioner may direct that, in addition to the amount of the arrears, simple interest at the rate of six percent 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."

4. After the amendment, the 40% provided under Section 4(1)(a) was enhanced to 50% and the amount of Rs. 20,000/- was enhanced to Rs. 50,000/-. Under Section 4(1)(b), 50% was enhanced to 60% and the amount of Rs. 25,000/- was enhanced to Rs. 60,000/-. In Explanation II, the amount of Rs. 1,000/- as originally provided was enhanced to Rs. 2,000/-.

5. Sub-section (4) of Section 4, which is added by the Amending Act, reads as follows:

"(4) If the injury of the workman resulted in his death, the employer shall, in addition to the compensation under sub-section (1), deposit with the Commissioner a sum of one thousand rupees for payment of the same to the eldest surviving dependant of the workman towards the expenditure of the funeral of such workman or where the workman did not have a dependant or was not living with his dependant at the time of his death to the person who actually incurred such expenditure."

Section 4A(3) as amended reads as follows:

"(3) where any employer is in default in paying the compensation due under this Act within one month from the date it fell due, the Commissioner shall -

(a) direct that the employer shall, in addition to the amount of the arrears, pay simple interest thereon at the rate of twelve pe