Smt. Basanti Devi vs Union Of India Through The General ...
2021 Latest Caselaw 593 Jhar

          IN THE HIGH COURT OF JHARKHAND AT RANCHI
                   [Civil Miscellaneous Appellate Jurisdiction]
                          M.A. No. 330 of 2016
         1.Smt. Basanti Devi
         2.Laxmi Kumari
         3.Rahul Sharma @ Thakur
         4.Sachin Thakur                               .... .. ...  Appellant(s)
                                     Versus
      Union of India through the General Manager, East Central Railway, P.O./P.S.-
      Hazipur, District- Hazipur (Bihar).                          .. ... ... Respondent(s)
                          ...........

CORAM :HON'BLE MR. JUSTICE KAILASH PRASAD DEO (Through :-Video Conferencing) .........

For the Appellant(s) : Mr. Rajesh Kr. Jha, Advocate.

                                           Mr. Ahok Kr. Singh, Advocate
      For the Respondent              :    Mr. Gautam Rakesh, Advocate
                          ..........

07 / 08.02.2021. Heard, learned counsel for the parties.

The appellants being the claimants have preferred this Misc. Appeal for enhancement of the Award dated 16.01.2015 passed by learned Member (Technical) Railway Claims Tribunal, Ranchi Bench, in Case No.OA (iiu)/RNC/2012/2009 on the ground that though the claim application has been allowed by learned Member (Technical) Railway Claims Tribunal, Ranchi Bench, by granting compensation to the tune of Rs.4 Lacs in view of the Railway Accidents and Untoward Incident (Compensation) Rules, 1990, but without interest contrary to the judgment passed by the Apex Court in the case of Thazhathe Purayil Sarabi and others vs. Union of Indian and another, reported in 2009(7) SCC 372 at para 38, which is profitably quoted hereunder:-

"38. As we have indicated earlier, payment of interest is basically compensation for being denied the use of the money during the period in which the same could have been made available to the claimants. In our view, both the Tribunal, as also the High Court, were wrong in not granting any interest whatsoever to the appellants, except by way of a default clause, which is contrary to the established principles relating to payment of interest on money claims.".

Learned counsel for the appellants has submitted that the incident took place on 23.07.2005, the claim application was filed on 19.08.2011, the matter was adjudicated and decided on 16.01.2015, but the learned Tribunal has not granted any interest rather the learned Tribunal has granted interest @9% per annum simple till the date of actual payment, if the awarded amount is not paid within three months from the date of order i.e. 16.01.2015.

Learned counsel for the appellants has further submitted that amount of award has already been paid, but it was incumbent upon the learned Tribunal to grant interest in view of the judgment passed by the Apex Court in the case of Thazhathe Purayil Sarabi (supra), as Apex Court has held that payment of interest is basically compensation, being denied the use of money during the period in which the same could have made available to the claimants, as such, the instant Misc. Appeal may be allowed.

Learned counsel for the respondent/Railway has submitted that the entire amount of compensation has already been disbursed by indemnifying the Award in terms of the Award passed by the learned Tribunal, as such, this Court may not interfere with the same.

Considering the rival submissions of the parties and looking into the facts and circumstances of the case as well as the ratio laid down by the Apex Court in the case of Thazhathe Purayil Sarabi (supra), this Court is inclined to grant interest @7.5% from the date of filing of the claim application i.e. 19.08.2011 till the date of actual payment, as no contrary evidence has been brought on record by the Railway that the original case/claim application remained pending before the learned Tribunal because of the laches on the part of the claimants.

Under the aforesaid circumstances and in absence of any such evidence, this Court is inclined to award interest @7.5% from the date of filing of the claim application i.e. 19.08.2011 till the date of actual payment on the awarded amount of Rs.4 Lacs, in view of the judgment passed by the Apex Court in the case of Thazhathe Purayil Sarabi (supra).

Accordingly, the instant Misc. Appeal stands allowed.

It is expected that railway shall comply the aforesaid judgment within a reasonable period as the unfortunate incident occurred on 23.07.2005.

Let L.C.R. be sent down to the court below at once.

(Kailash Prasad Deo, J.) Sandeep/