IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA FAO No. 219 of 2004. Date of Decision: 29.2.2008 National Insurance company. ...Appellant. Versus. Smt. Bimla Devi & others. ..Respondents. Coram: The Hon’ble Mr. Justice Deepak Gupta, Judge. Whether approved for Reporting? No. For the Appellant(s): Ms. Devyani Sharma, Advocate. For the Respondent(s): MrBimal Gupta & Ms. Shivani, Advocates Deepak Gupta, J. The short question that arises for decision in this appeal is whether the compensation under the Workmen’s Compensation Act, 1923 has to be calculated as per the provisions existing on the date of the accident or on the date when the case is decided? In the present case, admittedly the accident in question took place on 26.6.1999. As per the provisions of the Workmen’s Compensation Act, as they stood on the said date, the maximum wages of a workman which could be taken into consideration for assessing the compensation were Rs. 2000/-. The learned Commissioner has taken the wages of the workman at Rs. 3000/- and assessed the compensation on this basis. - 2 - This Court in New India Assurance Company Ltd. v. Nand Lal and another, Latest HLJ 2006 (HP 456, relying upon various judgments of the apex Court as well as earlier judgments of this Court has come to the conclusion that no retrospective operation can be given to the amended provisions of the Act and that the rights of the parties are crystallized on the date of the accident and have to be adjudicated on the basis of the law existing on the date of the accident. This position of law is well established. Therefore, the appeal has to be allowed to this extent. In case the maximum wages of the workmen are taken at Rs. 2000/- and multiplier of 211.79 is applied, keeping in view the fact that the workman had completed 28 years of service on the date of the accident, the compensation works out to Rs.2,11,790/-. The award of the learned Commissioner is accordingly modified and the amount of compensation is reduced from 3,11,685/- to Rs. 2,11,790/-. On behalf of the Insurance Company, it is contended that it is not liable to pay the interest. The Insurance Company has failed to prove on record the policy of the insurance and has failed to prove that there was any stipulation in the policy whereby the Insurance Company was exempted from payment of interest. In the absence of such stipulation having been proved, the Insurance company is liable to pay the interest at the rate of - 3 - 12% per annum from 27.7.1989 i.e. one month after the date of accident till the date of payment/deposit of the amount. The appeal is disposed of in the aforesaid terms. No order as to costs. February 29, 2008. ( Deepak Gupta ), J. s.