KERALA STATE ELECTRICITY BOARD AND ANR. versus VALSALA K. AND ANR. ETC. ETC.

Citation: [1999] SUPP. 2 S.C.R. 657 · Decided: 16-09-1999 · Supreme Court of India · Bench: A.S. ANAND, S. RAJENDRA BABU, R.C. LAHOTI · Disposal: Dismissed
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Judgment (excerpt)

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KERALA STATE ELECTRICITY BOARD AND ANR. 
A 
v. 
V ALSALA K. AND ANR. ETC. ETC. 
SEPTEMBER 16, 1999 
[DR. A.S. ANAND, C.J., S. RAJENDRA BABU AND 
R.C. LAHOTI, JJ.] 
Labour Law: 
Workmen's Compensation Act, 1923: 
Ss.4 and 4A-Amendment to by Act 30of1995-Enhancing amount of 
compensation and rate of interest w.e.f 15. 9.1995-Applicability of Amendment 
to cases arising out of accidents caused prior to 15. 9, 1995-Held, relevant 
date for determination of rate of compensation is the date of accident and 
B 
c 
not the date of adjudication of claim-However, in the instant matters, keeping D 
in view the particular facts and circumstances of the cases, pettiness of the 
amounts involved and the time that has since lapsed, the impugned order 
passed on the basis of the 1995 amendment are not interfered with. 
Pratap Narain Singh Dea v. Srinivas Sabata and another, (1976)1 E 
sec 289, relied on. 
United India Insurance Co. Ltd. v. Alavi, (1998) 1KLT951, approved. 
CIVIL APPELLATE JURISDICTION : Special Leave Petition (C) No. 
21613of1997 Etc. 
From the Judgment and Order dated 9.9.97 of the Kerala High Court in 
M.F.A No. 570of1997. 
F 
P. Krishnamoorthy, T.G.N. Nair, Romy Chacko, Ms. V. Mohana, Ramesh 
Babu M.R., Ms. Malini Poduval, Ms. K. Sarada Devi, B.V. Deepak, K.M.K. 
Nair, S.K. Paul, Salil Paul and Ms. Indira Sawhney for the appearing parties. G 
The following Order of the Court was delivered : 
The neat question involved in these special leave petitions is whether, 
the amendment of Sections 4 and 4A of the Workmen's Compensation Act, H 
657 
658 
SUPREME COURT REPORTS (1999) SUPP. 2 S.C.R. 
A 1923, made by Act No. 30of1995 with effect from 15.9.1995, enhancing the 
amount of compensation and rate of interest, would be attracted to cases 
where the claims in respect of death or permanent disablement resulting from 
an accident caused during the course of employment, took place prior to 
15.9.1995? 
B 
Various High Courts in the country, while dealing with the claim for 
compensation under the WorRmen's Compensation Act have uniformly taken 
the view that the relevant date for determining the rights and liabilities of the 
parties is the date of the accident. 
A four judge Bench of this Court in Pratap Narain Singh Deo v. Srinivs 
C Sabata and Anr., [1976] I SCC 289 speaking through Shinghal. J. has held ti)at 
an employer becomes liable to pay compensation as soon as the personal 
injury is caused to the workmen by the accident which arose out of and in 
the course of employment. Thus, the relevant date for determination of the 
rate of compensation, is the date of the accident and not the dat.e of 
D adjudication of the claim. 
A two judge Bench of this Court in The New India Assurance Company 
Limited v. V.K. Neelakandan and Ors. etc. etc.--Civil Appeal Nos. 16904-
16906of1996, decided on 6.11.1996, however, took the view that Workmen's 
Compensation Act, being a special legislation for the benefit of the Workmen, 
E the benefit as available on the date of adjudication should be extended to. the 
workmen and not the compensation which was payable on the date of the 
accident. Two judge Bench in Neelakandan 's case (supra), however, did not 
take notice of the judgment of the larger Bench in Pratap Naraian Singh 
Deo 's case, as it presumably was not brought to the notice of their Lordships. 
F 
Be that as it may, in view of the categorical law laid down by the larger Bench 
in Pratap Narain Singh Deo 's case the view expressed by the two judge 
Bench in Neelakandan 's case is not correct. 
Our attention has also been drawn to a judgment of the Full Bench of 
the Kerala High Court ill United India Insurance Co. Ltd. v. Alavi, (1998) 1 
G KL T 951 (FB) wherein the Full Bench precisely considered the same question 
and examined both the above noted judgments. It took the view that the 
injured-workmen becomes entitled to get compensation the moment he suffers 
personal injuries of the types contemplated by the provisions of the Workmen's _ 
Compensation Act and it is the amount of compensation payable on-the date 
of the accident and not the amount of compensation payable on account of 
H the amendment made in 1995, which is relevant. The decision of the Full 
•.: 
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KERALA STATE ELECTRICITY BOARD v. VALSALA K. 
659 
Bench of the Kerala High Court, to the extent it is in accord with the judgment A 
of the larger berich of this Court in Pratap Singh Narain Singh Deo v. 
Srinivas Sabata and
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