Nuka Ashok vs The Union Of India
2023 Latest Caselaw 1257 Tel

     IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH
                       AT HYDERABAD

                         PRESENT
             THE HON'BLE SRI JUSTICE K.C.BHANU

            CIVIL MISCELLANEOUS APPEAL NO.816 OF 2009

                              Date:21.09.2011


Between:-
Nuka Ashok and another.
                                                      ...Appellants
And

The Union of India and others.                      ... Respondents




             THE HON'BLE SRI JUSTICE K.C. BHANU
        CIVIL MISCELLANEOUS APPEAL NO.816 OF 2009

JUDGMENT:

This Civil Miscellaneous Appeal is directed against the order,

dated 03.06.2009 in O.A.A. No.225 of 2004 on the file of the Railway

Claims Tribunal, Secunderabad Bench, at Secunderabad, for not

granting interest from the date of application till the date of order on

the compensation amount of Rs.4,000,000/- for the death of the

deceased.

2. Heard.

3. Considering the evidence on record, the Tribunal awarded

compensation and that order has become final. The only question is

with regard to the payment of interest. The Tribunal has not awarded interest from the date of application till the date of order.

4. No doubt, there is no provision under the Railways Act, 1989,

with regard to the payment of interest from the date of application till

the date of order. But, at the same time, Section 34 of the Code of Civil

Procedure, 1908, and Section 3 of the Interest Act, 1978, provide for

grant of interest. Granting of interest during the pendency of the

Original Application before the Tribunal is within the discretion of the

Tribunal and that discretion has to be exercised judiciously.

5. On this aspect, it is pertinent to refer to a decision of the

Honourable Supreme Court in TAHAZHATHE PURAYIL SARABI AND

OTHERS VS. UNION OF INDIA AND ANOTHER "We, therefore, allow the appeal and modify order of the High Court dated 24.5.2007 affirming the order of the Trial Court and direct that the awarded sum will carry interest @ 6% simple interest per annum from the date of the application till the date of the Award and, thereafter, at the rate of 9% per annum till the date of actual payment of the same."

In view of the above decision, the applicants are entitled to

simple interest at the rate of 6% per annum from the date of application

till the date of order.

6. Accordingly, the Civil Miscellaneous Appeal is allowed.

granting simple interest at the rate of 6% per annum from the date of

application till the date of order and thereafter, at the rate of 9% per

annum till the date of realization. There shall be no order as to costs.

________________ K.C. BHANU, J SEPTEMBER 21, 2011 YVL