The Calcutta High Court allows the appeals filed against the judgments passed by the Railway Claims Tribunal, Kolkata wherein the Claims tribunal has allowed the claim applications of the claimants and awarded the compensation without any interest. The Court observed that the sole purpose of the Act would be frustrated if the compensation was awarded by the tribunal without interest.
Brief Facts:
In a claim against Railway, the claimant received compensation from the Railway. However, based on the Notification of the Central Government No-877 dated 22nd December 2016, which came into force on the 1st Day of January, the appellant is claiming interest on the compensation awarded.
Contentions of the Appellant:
The learned counsel for the Appellant submitted that the Tribunal has committed an error by not passing the order of compensation along with interest. He pointed out that the amount of Rs. 4,00,000/- was awarded in this case but by virtue of Notification of the Central Government No-877 dated 22nd December 2016, which came into force on 1st Day of January 2004, the compensation amount should be Rs.8,00,000/-.
Contentions of the Respondent:
The learned counsel for the Railway Authority submitted that the impugned judgment passed by the learned tribunal has suffered no illegality. After passing the award the claimant has already received the awarded sum and the matter has already been settled there. Now, by virtue of the amendment of the relevant provisions, the instant appeal has been preferred on the basis of the principle of estoppel the appeal is not at all maintainable.
The Counsel argued that the Notification of the Central Government was passed in the year 2016 and the instant award was passed prior to the Notification. Thus, the claimants are not entitled to get any extra amount by virtue of the said Notification.
Observations of the Court:
The Court noted that the Railway Claims Tribunal is statutorily not bound to award interests to the claimants along with compensation. Section 18 of the Railway Claims Tribunal Act, 1987 does not confer any provision of payment of interest thus the claim tribunal usually allowed the compensation to the claimants, and the interest was only given on default clause.
The Court observed that the tribunal has committed an error by not awarding the interest along with compensation. The position of law is very much clear that The Railways Act, 1989 and claim cases there under, compensation was awarded towards the fateful family members of the deceased person which is a beneficial legislation. The Act serves society. The sole purpose of the Act would be frustrated if the compensation was awarded by the tribunal without interest. The interest is not a penalty but it is a regular accretion of capital.
The decision of the Court:
The Calcutta High Court, allowing the appeal, held that the award of compensation passed by the learned tribunal shall carry interest @ 6% per annum from the date of the accident of each case.
Case Title: Alla Rakha Shatkh @ Alla Rakha Sk. & Anr. vs Union of India WITH Saratananesha Bibi & Anr. vs Union of India
Coram: Hon’ble Justice Subhendu Samanta
Case no.: FMA 1066 of 2017 & FMA 1064 of 2017
Advocate for the Appellant: Mr. Jayanta Banerjee
Advocate for the Respondent: Ms. Ranjana Chatterjee and Mr. Subrata Santra
Read Judgment @LatestLaws.com
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