Union Of India vs J. Ramniklal And Co
2022 Latest Caselaw 11834 Bom

Megha                                       915_fa_721_1998.doc



          IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                  CIVIL APPELLATE JURISDICTION

                    FIRST APPEAL NO.721 OF 1998

Union of India, through the General
Manager, Central Railway, Mumbai
C.S.T.                                                    ...Appellant
                  Versus
J. Ramniklal and Company, Mumbai                        ...Respondent
                                    ...
Mr. T.J. Pandian for the Appellant.
None for the Respondent.


                           CORAM: SMT. ANUJA PRABHUDESSAI, J.

DATED : 18th NOVEMBER, 2022.

P.C. :-

1. Mr. Pandian, learned counsel for the Appellant states that

he is restricting the challenge only to the rate of interest. He submits

that the Railway Claims Tribunal has awarded interest at the rate of

12% per annum with effect from the date of application till the date of

payment. Relying upon the decision of this Court in Union of India

v/s. State Trading Corporation Ltd. 2007(3) Mh.L.J. 609, he seeks

reduction of rate of interest at 6% per annum.

2. In State Trading Corporation (supra) after considering the

previous decision in Maharashtra State Electricity Board vs. Union of

Megha 915_fa_721_1998.doc

India 2005(1) Mah.L.J. 165, this Court had reduced the rate of interest

from 9% to 6% per annum to be paid from the date of filing of the

Claim Application. The said judgment pertains to the claim of the year

1990, whereas the claim in the present matter is of the year 1992. In

order to maintain uniformity, the rate of interest in the present case is

also reduced to 6%.

3. Hence the Appeal is partly allowed. Interest rate is reduced

from 12% to 6% per annum, to be paid from the date of filing of the

Claim Application.

4. Respondent is permitted to withdraw the compensation

along with interest @ 6% per annum from the date of Claim

Application.

5. The balance amount be refunded to the Appellant.

6. Appeal stands disposed of. Decree may be drawn

accordingly.

                                                           (SMT. ANUJA PRABHUDESSAI, J.)




        Digitally signed
MEGHA by MEGHA S
      PARAB
S     Date:
      2022.11.22
PARAB 11:06:24
        +0530