Compensation liability arises on accident, and loss of a carpenter's arm can amount to total disablement.

Amputation of a carpenter's left arm above the elbow was treated as permanent total disablement because the injury rendered him incapable of performing carpentry, which he was doing at the time of the accident; the compensation assessment on that basis was upheld. The Court also clarified that an employer's liability to pay compensation arises when a compensable accident occurs, and is not postponed until the Commissioner settles the dispute. Section 19 only provides the forum and method for adjudication where no agreement exists, so delay in payment justified interest and penalty. The award of compensation, interest and penalty was sustained.

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Issues: (i) Whether amputation of the workman's left arm above the elbow resulted in permanent total disablement under the Workmen's Compensation Act, 1923. (ii) Whether the employer's liability to pay compensation arose only after the Commissioner's settlement and, therefore, no penalty or interest could be imposed for delay in payment.

Issue (i): Whether amputation of the workman's left arm above the elbow resulted in permanent total disablement under the Workmen's Compensation Act, 1923.

Analysis: The statutory definition of total disablement is disablement which incapacitates the workman for all work which he was capable of performing at the time of the accident. The finding recorded was that the workman was a carpenter by profession and that loss of the left hand above the elbow rendered him unfit for carpentry, since the work could not be done with one hand only. That finding was accepted as reasonable and correct. The attempt to treat the injury as only partial disablement failed, both because the finding on incapacity was unassailable and because a new factual basis not raised or established before the Commissioner could not be introduced in appeal.

Conclusion: The injury amounted to permanent total disablement, and the compensation assessment on that basis was upheld.

Issue (ii): Whether the employer's liability to pay compensation arose only after the Commissioner's settlement and, therefore, no penalty or interest could be imposed for delay in payment.

Analysis: The Act makes the employer liable to pay compensation when personal injury is caused by an accident arising out of and in the course of employment. Section 19 only provides the forum and method for settling disputes as to liability, amount, or duration when no agreement exists; it does not suspend the substantive liability itself. Once the accident occurred, the compensation became due, and the employer was required to pay it or make provisional payment. The employer neither paid nor made provisional payment and instead took untenable defences, so the Commissioner was justified in directing interest and penalty.

Conclusion: The employer's liability arose immediately on the accident, and the imposition of penalty and interest was valid.

Final Conclusion: The appeal failed in full, and the award of compensation, interest, and penalty was sustained.

Ratio Decidendi: Under the Workmen's Compensation Act, 1923, an employer's liability to pay compensation arises when the compensable accident occurs, and an injury that renders a carpenter unable to perform carpentry work constitutes total disablement for compensation purposes.

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