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Claims Tribunal Act vs Union Of India
2025 Latest Caselaw 9173 Ori

Citation : 2025 Latest Caselaw 9173 Ori
Judgement Date : 17 October, 2025

Orissa High Court

Claims Tribunal Act vs Union Of India on 17 October, 2025

Author: Sanjeeb K Panigrahi
Bench: Sanjeeb K Panigrahi
                                                                  Signature Not Verified
                                                                  Digitally Signed
                                                                  Signed by: BHABAGRAHI JHANKAR
                                                                  Reason: Authentication
                                                                  Location: ORISSA HIGH COURT,
                                                                  CUTTACK
                                                                  Date: 17-Oct-2025 18:58:01




            IN THE HIGH COURT OF ORISSA AT CUTTACK

                            F.A.O No.225 of 2021
     (In the matter of an application under Section 23 of the Railway
     Claims Tribunal Act, 1987).
    Sushila Haro & Ors.                        ....               Appellant(s)
                                    -versus-
    Union of India, represented                ....             Respondent(s)
    through its General Manager,
    South Eastern Railway, Garden
    Reach, Kolkata, West Bengal

  Advocates appeared in the case through Hybrid Mode:

    For Appellant               :                 Mr. Akansh Acharya, Adv.
                                                               On behalf of
                                                Mr. Dhananjaya Mund, Adv.
    For Respondent              :                   Mr. M.K. Pradhan, Sr. PC.


              CORAM:
              DR. JUSTICE SANJEEB K PANIGRAHI

                     DATE OF HEARING:-16.10.2025
                    DATE OF JUDGMENT:-17.10.2025
  Dr. Sanjeeb K Panigrahi, J.

1. In the present appeal, the Appellants challenge the judgment and order

dated 15.01.2021 passed by the Railway Claims Tribunal, Bhubaneswar

Bench, Bhubaneswar in Case No.OA/IIU/296/2017 which dismissed

their claim application for compensation arising out of the death alleged

to have occurred in an 'untoward incident' within the meaning of

Section 124A of the Railways Act, 1989.

I.      FACTUAL MATRIX OF THE CASE:

     2. The brief facts of the case are as follows:


        (i)     As per the original claim application, on the date of the incident

i.e. 06.08.2017, the deceased Ajit Haro was travelling from Angul

to Rourkela on the strength of valid journey ticket bearing the No.

UYA-83483819 by Puri-Rourkela Passenger Train.

(ii) The Appellants submit that during the course of the journey, the

compartment in which the deceased was travelling was heavily

overcrowded, and owing to a sudden jerk caused by the abrupt

application of brakes, coupled with the push and pull of fellow

passengers, the deceased lost his balance and accidentally fell

from the running train between Panposh and Rourkela Railway

Stations, resulting in his instantaneous death at the spot.

(iii) The appellants thereafter instituted Original Application No. 296

of 2017 before the Railway Claims Tribunal, Bhubaneswar under

Section 16 of the Railway Claims Tribunal Act, 1987, seeking

compensation under Section 124A of the Railways Act, 1989 on

account of the death of the deceased in the untoward incident.

(iv) On the basis of the pleadings and evidentiary materials adduced

by the respective parties, the Learned Tribunal was pleased to

frame five specific issues for determination. However, upon a

purported appreciation of the evidence, the Learned Tribunal fell

into grave error in holding that the deceased was neither a bona

fide passenger nor a victim of an untoward incident within the

meaning of Section 123(c)(2) of the Railways Act, 1989. Such

findings, being contrary to the weight of evidence and settled

legal principles, are ex facie perverse and unsustainable in law.

Consequently, the Original Application was dismissed.

(v) Being aggrieved by the judgment and order dated 15.01.2021

passed in the Original Application No. 296 of 2017 by the

Railways Claims Tribunal, Bhubaneswar, the appellants have

preferred the present appeal.

II. SUBMISSIONS ON BEHALF OF THE APPELLANTS:

3. Learned counsel for the Appellants earnestly made the following

submissions in support of his contentions:

(i) The Appellants submitted that the dismissal of the Original

Application by the Railway Claims Tribunal, Bhubaneswar, in

respect of the alleged untoward incident resulting in the death of the

deceased, is contrary to the weight of the evidences on record,

suffers from mis-appreciation of the material facts, and otherwise is

bad in law. Hence, the impugned judgment and order is liable to set

aside.

(ii) The Appellants submit that the contemporaneous documentary

evidence, particularly the records and reports issued by the Police

authorities, unequivocally demonstrate that the deceased met with

death as a direct consequence of an untoward incident occurring in

the course of his bona fide journey as a passenger. However, the

Learned Tribunal, while adjudicating the matter, failed to appreciate

these material pieces of evidence in their proper legal perspective

and instead proceeded to render the impugned judgment on

conjectural and presumptive reasoning. The Tribunal has further

erred in placing unwarranted reliance upon the DRM Report, which,

being a post-incident document prepared much belatedly

subsequent to the occurrence and after institution of the claim

application, cannot be accorded overriding evidentiary value over

the contemporaneous police records.

(iii) The Learned Tribunal, without adverting to or taking judicial notice

of the relevant facts, circumstances, and evidentiary materials

available on record, has proceeded to erroneously reject the claim

application on a wholly misconceived premise that the death of the

deceased might have occurred under one of the exceptions engrafted

in the proviso to Section 124A of the Railways Act, 1989. The

Learned Tribunal, while recording such findings, has further

misdirected itself in law by concluding that the deceased was

neither a bona fide passenger nor a victim of an untoward incident

within the contemplation of Section 123(c)(2) of the said Act. The

aforesaid conclusions, being contrary to the weight of evidence,

suffer from manifest illegality, perversity, and non-application of

mind, and are, therefore, ex facie unsustainable and liable to be

quashed and set aside.

(iv) The Final Report submitted by the Investigating Agency, together

with the Post-Mortem Report and the Inquest Proceedings,

conclusively establish that the death of the deceased occurred as a

direct consequence of a fall from a running train during the course

of his journey. These contemporaneous and official records leave no

manner of doubt as to the cause and nature of the incident.

Significantly, no cogent or credible evidence was adduced by the

Respondent-Railways to controvert or rebut the said findings, and

hence the same stand unrebutted and uncontroverted on record.

(v) It is a settled principle of law, consistently affirmed by judicial

precedents, that the initial burden lies upon the Railway

Administration to establish that the deceased was not a bona fide

passenger within the meaning of Section 2(29) read with Section

124A of the Railways Act, 1989. The Learned Tribunal, however, has

fallen into patent error in law by erroneously shifting this burden

onto the claimants, contrary to the settled legal position laid down

by the Hon'ble Supreme Court and various High Courts. Such an

approach reflects a clear misapplication of the statutory

presumption operating in favour of the passenger and has resulted

in a manifest miscarriage of justice, vitiating the impugned

judgment in its entirety.

(vi) It is submitted that Section 124A of the Railways Act, 1989, being a

piece of beneficial and welfare legislation, is required to be

interpreted in a liberal and purposive manner so as to advance the

object of social justice underlying the statute. The provision

embodies the principle of strict liability on the part of the Railway

Administration in cases of death or injury arising out of an untoward

incident during the course of a bona fide journey. Unless the case

squarely falls within one of the express exceptions carved out in the

proviso to Section 124A, the liability of the Railways to compensate

the victim or the legal heirs of the deceased is absolute and does not

depend upon proof of negligence or fault.

(vii) In view of the foregoing, it is submitted that the Learned Tribunal

has gravely erred in law and on facts in dismissing the claim

application despite the existence of ample oral and documentary

evidence conclusively establishing that the deceased was a bona fide

passenger and that his death occurred as a result of an untoward

incident within the meaning of Section 123(c)(2) of the Act. The

findings recorded by the Learned Tribunal are manifestly perverse,

contrary to the evidentiary record, and unsustainable in the eye of

law. Consequently, the impugned judgment and award are liable to

be quashed and set aside, and the Appellants are entitled to

compensation along with statutory interest as envisaged under

Section 124A of the said Act.

III. SUBMISSIONS ON BEHALF OF THE RESPONDENT:

5. On the contrary the Learned Counsel from the Respondent made the

following submissions:

(i) It is submitted that in proceedings arising out of untoward incidents

under Section 124A of the Railways Act, the initial onus upon the

claimant is limited to establishing, on the basis of the preponderance of

probabilities, that the deceased was a bona fide passenger and that the

death occurred as a result of an untoward incident during the course of

a valid journey. Once such foundational facts are proved, a statutory

presumption operates in favour of the claimant, and the burden then

shifts to the Railway Administration to disprove the same by

adducing cogent, credible, and affirmative evidence. In the absence of

such rebuttal, the liability of the Railways to compensate under

Section 124A becomes strict and absolute, irrespective of fault or

negligence, consistent with the beneficial and welfare character of the

legislation.

(ii) It is contended that the Appellants have failed to satisfactorily

discharge the initial burden of proof cast upon them under Section

124A of the Railways Act. The evidentiary materials placed on record

do not conclusively establish that the deceased had actually boarded

the train in question, nor do they substantiate that he fell therefrom

and sustained fatal injuries as a direct consequence of such fall. In the

absence of proof of these foundational facts, the alleged incident

cannot, in law, be categorized as an untoward incident or an accidental

fall from a running train within the meaning of Section 123(c)(2) of

the said Act. Accordingly, no statutory liability can be fastened upon

the Respondent-Railways to pay compensation under Section 124A.

(iii) The Learned Tribunal has rightly disbelieved the testimony of

A.W.1, the wife of the deceased, as her deposition lacked credibility

and appeared to be tainted with exaggeration and material

inconsistencies. The Tribunal, upon due appreciation of evidence,

correctly observed that her statements seemed to be motivated by an

ulterior intent to secure compensation, rather than being based on

truthful narration of facts. Hence, her testimony could not be

accorded any probative value and was rightly discarded as

unreliable.

(iv) The Appellants have failed to discharge the essential burden of

proving that the deceased was a bona fide passenger travelling with a

valid journey ticket at the time of the alleged incident. The inquest

proceedings, as well as other contemporaneous records, do not

indicate recovery of any travel ticket from the person or belongings of

the deceased. The Respondents have further contended that the ticket

subsequently produced by the claimants was a fabricated document,

allegedly planted with the mala fide intent of substantiating a false

claim for compensation. In the absence of any cogent, reliable, and

corroborative evidence establishing that the deceased was a bona fide

passenger, the foundational requirement for attracting the statutory

liability under Section 124A of the Railways Act, 1989 remains

unfulfilled. Consequently, the claim application is rendered

untenable in law and not maintainable.

IV. FINDINGS OF THE TRIBUNAL:

6. The Tribunal, while dismissing the claim application, recorded the

following key observations and conclusions:

(i) The Tribunal dismissed the claim primarily on the ground that the

deceased was not established to be a bona fide passenger. It found

that the journey ticket allegedly recovered, was a later insertion and

not genuine. This conclusion was drawn after noting discrepancies

between the inquest report and the post-mortem challan entries.

Consequently, the Tribunal held that the claim could not be

sustained in the absence of proof of lawful travel by the deceased.

(ii) The Tribunal emphasized that at the time of the inquest, no journey

ticket was recovered from found deceased's possession. The court

found it "inexplicable" that the post- mortem doctor could have

recorded the presence of a ticket when earlier police papers had not

documented the same. This inconsistency further undermined the

authenticity of the alleged ticket and contributed to the rejection of

the claim.

(iii)It is further noted that neither the on-duty guard nor the loco pilot of

the alleged train reported witnessing any untoward incident during

the journey. Moreover, there is an absence of any eyewitness or co-

passenger testimony to substantiate the claim that the deceased fell

from the running train. This lack of direct evidence seriously

undermines the assertion that the death occurred due to an accident

during the course of travel.

(iv) The Tribunal held that such circumstances, as they stand, do not

demonstrate an accidental fall from the train, and therefore, the

occurrence cannot be classified as an "untoward incident". Since

establishing such an incident is a sine qua non for claiming

compensation under Section 124A of the Railways Act, this essential

requirement remains unfulfilled. And consequently, the Railways

are protected under the exception clause of Section 124A of the Act.

(v) The Learned Tribunal placed considerable reliance upon the

Divisional Railway Manager's (DRM) Report, observing that the

same remained unchallenged and undisputed by the claimants

during the course of proceedings. The Tribunal, therefore, treated

the said report as a material piece of corroborative evidence

supporting the Respondents' contention that the deceased was not a

bona fide passenger and that no incident of accidental fall from a

running train had in fact occurred. This uncontroverted report, in

the considered view of the Tribunal, lent substantial credence to the

Respondents' version and consequently fortified the ultimate

conclusion leading to the dismissal of the claim application

(vi) The medical opinion expressed in the postmortem, noted that the

deceased died from neurogenic shock due to complete transaction of

the head, with the death classified as accidental. However, it

emphasized the burden of proof rests on the claimants to establish

that the death resulted specifically from accidental fall from the

running train. Since the claimants failed to provide satisfactory

evidence to meet this burden, the claim compensation under Section

124A of the Railways Act, 1989 was rightly rejected.

(vii) Consequently, Issues 1, 2 and 3 were decided against the

claimants. In view of such findings, the Tribunal declined to

examine Issues 4 and 5 relating to dependency and relief. The claim

application was thus dismissed.

V. COURT'S REASONING AND ANALYSIS:

7. Heard Learned Counsel for parties and perused the documents placed

before this Court. The central questions that arise for consideration are:

a. whether the deceased was a bona fide passenger?

b. whether the incident amounts to an 'untoward incident' within

the meaning of Section 123(c)(2) read with Section 124A of the

Railways Act, 1989? And

c. whether the Railway Administration stands absolved of liability

by reason of any exceptions under Section 124A?

8. The Supreme Court as well as this Court have consistently observed

that Section 124A of the Railways Act, 1989 embodies the principle of

strict liability, also referred to as no-fault liability, in cases of railway

accidents or untoward incidents. Consequently, once a case falls within

the ambit of Section 124A, the question of negligence or fault becomes

wholly immaterial, and liability of the Railway Administration to pay

compensation arises automatically, except in cases expressly covered by

the statutory exceptions enumerated in the proviso to the said section.

9. This Court deems it appropriate to advert to the constitutional

philosophy enshrined under Article 38 of the Constitution of India,

which mandates the State to secure and promote the welfare of the

people by ensuring a social order permeated by justice--social,

economic, and political. In pursuance of this constitutional obligation,

Parliament has enacted various social welfare legislations that embody

the principle of strict liability, aimed at providing prompt and equitable

compensation to victims of accidents or mishaps arising out of public

utility services, irrespective of fault or negligence. These enactments,

including Section 124A of the Railways Act, 1989, represent the

legislative commitment to the ideal of social justice and the protection of

vulnerable citizens, ensuring that the State and its instrumentalities

remain accountable in situations where individuals suffer injury or loss

of life in the course of availing essential public services.

10. In this regard, reliance is rightly placed upon the landmark judgment

of the Constitution Bench of the Supreme Court in M.C. Mehta &Anr. v.

Union of India & Ors1wherein the Court evolved and affirmed the

principle of absolute liability in respect of enterprises engaged in

hazardous or inherently dangerous activities. The Hon'ble Court

categorically held that such liability operates independently of, and

without the limitations of, the exceptions recognised in Rylands v.

Fletcher2. It was further enunciated that any enterprise carrying on such

inherently dangerous operations owes an absolute and non-delegable

duty to the community to ensure that no harm results from its activities.

This doctrine, founded upon considerations of social justice and

welfare, imposes a heightened standard of care and accountability on 1 (1987) 1 SCC 395

(1868) LR 3 HL 330

public and private undertakings alike, thereby reinforcing the

protective and compensatory objectives underlying welfare legislations

such as Section 124A of the Railways Act, 1989.

11. It may further be observed that once the foundational facts -- namely,

the occurrence of the death of a passenger in an "untoward incident"

and the establishment that such passenger was a bona fide passenger --

stand proved on record, the liability of the Railway Administration

under Section 124A of the Railways Act, 1989 becomes absolute and

unconditional. The Supreme Court has consistently held that the

absence of any wrongful act, negligence, or default on the part of the

Railway Administration is wholly immaterial, inasmuch as the said

provision expressly incorporates the doctrine of strict liability.

Consequently, the Railway Administration is held liable to compensate

irrespective of fault, thereby ensuring the legislative objective of

affording protection, relief, and just compensation to victims or their

legal representatives in cases of railway accidents or untoward

incidents.

12. At the very threshold, it becomes imperative to examine the statutory

scheme embodied under Section 124A of the Railways Act, 1989, which

unequivocally institutes a regime of strict liability on the part of the

Railway Administration. The provision stipulates that where the death

of, or injury to, a passenger results from an "untoward incident"

occurring in the course of railway operations, the Railway

Administration is mandatorily bound to pay compensation, irrespective

of any negligence, wrongful act, or default on its part. Such liability is,

however, subject only to the specific exceptions expressly carved out in

the proviso to the said section. The legislative intent underlying Section

124A is thus to impose an absolute statutory liability upon the

Railways, designed to ensure social welfare and to provide protection

and just compensation to passengers or their legal representatives in the

event of unforeseen and untoward incidents during the course of

railway travel.

13. In light of the foregoing discussion, it is manifest that in cases involving

untoward incidents, particularly where the activity in question is

carried out under the control or supervision of a statutory authority

such as the Railway Administration in the present case, the principle of

strict liability stands squarely attracted. The Central Government, acting

through the Railway Administration, has thus rightly been fastened

with the statutory obligation to compensate victims of such incidents.

The doctrine of strict liability, as evolved and firmly entrenched in

Indian jurisprudence, applies with full force to statutory undertakings

engaged in activities affecting public safety and welfare. This ensures

that victims or their dependents receive timely and just compensation,

consistent with the constitutional ethos embodied in Articles 38 and

39A of the Constitution of India, which enjoin the State to promote

social justice, equality, and protection for all citizens.

14. On the issue of bona fide passengership, this Court finds that the

Learned Tribunal erred in placing undue and exclusive reliance upon

the non-recovery of the journey ticket during the inquest proceedings

and in holding that the ticket subsequently produced by the claimant

was a fabricated document. Upon careful scrutiny of the record, this

Court is satisfied that the deceased was indeed a bona fide passenger, as

the journey ticket was duly produced by the Appellants and has not

been effectively rebutted by the Respondents. It is a settled position of

law that once the claimant establishes, even prima facie, the status of the

deceased as a bona fide passenger, the burden shifts upon the Railway

Administration to disprove the same by leading cogent evidence. In this

regard, reliance is placed on the decision of the Supreme Court in Doli

Rani Saha v. Union of India3, wherein it was held that the initial burden

upon the claimant may be discharged by filing an affidavit of relevant

facts, and thereafter, the onus lies upon the Railways to rebut such

evidence. The Court further observed that the mere non-recovery of a

journey ticket at the time of inquest, by itself, cannot be treated as

conclusive proof to negate the claim of bona fide passengership,

particularly in cases of accidental death arising out of untoward

incidents.

15. The same principle has been reiterated by the Supreme Court in Union

of India v. Rina Devi4, wherein it was categorically held that Section

124A of the Railways Act, mandates the payment of compensation to

victims or their legal representatives irrespective of any wrongful act,

negligence, or fault on the part of the Railway Administration, so long

2024 INSC 603 4 (2019) 3 SCC 572

as the death or injury has resulted from an "untoward incident" as

defined under Section 123(c) of the Act. The Court emphasized that the

said provision embodies a statutory regime of strict liability, intended to

secure prompt, certain, and just relief to victims of railway accidents,

without compelling them to establish negligence or fault. This

interpretation reinforces the welfare-oriented and remedial object

underlying the legislation, ensuring that the rights of passengers and

their dependents are adequately protected.

16. In the present case, the Applicants have adduced cogent and credible

evidence, including the valid journey ticket, the Inquest Report, the

Post-Mortem Report, and the Final Investigation Report, all of which

consistently record that the deceased met with his death as a result of an

accidental fall from a running train during the course of the journey.

Further, A.W.1, the wife of the deceased, has categorically deposed that

the deceased had purchased a valid journey ticket prior to

commencement of travel. The Respondents, however, have failed to

produce any substantive, reliable, or corroborative material to rebut the

said evidence and have instead sought to rely upon speculative and

inferential observations contained in the DRM's inquiry report, which,

by its very nature, lacks evidentiary sanctity. Consequently, the

uncontroverted evidence on record firmly establishes the bona fide

passengership of the deceased and substantiates the Applicants'

entitlement to compensation under Section 124A of the Railways Act,

1989.

17. Upon a careful and comprehensive appraisal of the evidence on record,

this Court finds that the Applicants have successfully established that

the deceased was travelling as a bona fide passenger with a valid

journey ticket and that he accidentally fell from the running train

between Panposh and Rourkela Railway Stations. Such an occurrence

squarely falls within the ambit of an "untoward incident" as defined

under Section 123(c)(2) of the Railways Act, 1989, thereby attracting the

operation of Section 124A of the said Act. This position has been

authoritatively affirmed by the Supreme Court in Union of India v.

Prabhakaran Vijaya Kumar5, wherein it was held that the provisions

relating to compensation under the Railways Act are remedial and

welfare-oriented in nature and must, therefore, be interpreted liberally

and purposively so as to advance the object of the legislation. The Court

further cautioned against adopting a restrictive construction of the

expression "accidental falling of a passenger from a train", observing

that such an approach would defeat the legislative intent and unjustly

deprive bona fide passengers or their legal heirs of their rightful

entitlement to compensation.

18. In the present case, the evidence unequivocally establishes that the

death of the deceased occurred due to an untoward incident within the

meaning of the Act, and none of the statutory exceptions contained in

the proviso to Section 124A stand attracted. The death was not the result

of any felonious, intoxicated, or suicidal act on the part of the deceased.

(2008) 9 SCC 527

There is no material on record to suggest that he intended to cause self-

harm or was engaged in any act constituting an offence. Being a bona

fide passenger at the relevant time, the deceased squarely falls within

the protective ambit of the statute. Consequently, the claim under

Section 124A of the Railways Act, 1989 is held to be maintainable, and

the Railway Administration is statutorily liable to compensate,

irrespective of fault or negligence.

VI. CONCLUSION:

19. In view of the foregoing discussion and the materials placed on record,

this Court is satisfied that the Appellants have successfully established

that the deceased was a bona fide passenger and that his death occurred

as a result of an "untoward incident" within the meaning of Section

123(c)(2), read with Section 124A of the Railways Act, 1989. The

evidence adduced by the Appellants, being cogent and credible, clearly

demonstrates that none of the statutory exceptions enumerated in the

proviso to Section 124A stand attracted in the present case.

Consequently, the liability of the Railway Administration to pay

compensation under the said provision stands established.

20. Accordingly, the impugned judgment and order dated 15.01.2021,

passed by the Railway Claims Tribunal, Bhubaneswar in Original

Application No.296 of 2017, is hereby set aside. The Respondent-

Railway Administration is directed to pay to the Appellants the

statutory compensation, together with interest as admissible under law,

within a period of three months from the date of receipt of this

judgment. The appeal is, therefore, allowed.

21. Accordingly, this Court directs the Respondent-Union of India

(Railways) to pay a sum of ₹8,00,000/- (Rupees Eight Lakhs only) to the

Appellants towards compensation under Section 124A of the Railways

Act, 1989. The said amount shall carry interest at the rate of 6% per

annum, payable from the date of filing of the claim application u5ntil

the date of actual payment. The Respondent-Railways shall deposit the

aforesaid amount before the Learned Railway Claims Tribunal,

Bhubaneswar, within a period of three months from the date of receipt

of this judgment. Upon such deposit, the Tribunal shall ensure

disbursement of the compensation amount to the Appellants in

accordance with law and after proper verification of their identity.

22. Interim order, if any, passed earlier stands vacated.

(Dr. Sanjeeb K Panigrahi) Judge

Orissa High Court, Cuttack, Dated the 17th October, 2025/

 
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