In which of the following cases will an employer be held liable to pay compensation under the Employees' Compensation Act, 1923?
1. Where a personal injury is caused to an employee by an accident arising out of his employment
2. Where the injury caused results in total disablement for two days
3. Where the personal injury to the employee is caused in the course of his employment
Select the correct answer using the code given below.

Under Section 3 of the Employees' Compensation Act, 1923 (now the Employee's Compensation Act), an employer is liable to pay compensation if personal injury is caused to an employee by an accident arising out of and in the course of his employment. Thus, statements 1 and 3 are correct as they describe the fundamental conditions for liability.

However, Section 3(1)(a) specifies that the employer is not liable in respect of any injury which does not result in the total or partial disablement of the employee for a period exceeding three days. Since statement 2 mentions a disablement of only two days, the employer would not be held liable in that specific case. Therefore, only statements 1 and 3 represent conditions under which liability is established, subject to the duration of disablement exceeding the statutory minimum.