Telangana High Court
Sumana Stephen Selvaraj vs Union Of India on 30 July, 2024
Author: G.Radha Rani
Bench: G.Radha Rani
THE HONOURABLE DR.JUSTICE G.RADHA RANI
CIVIL MISCELLANEOUS APPEAL No.112 of 2019
JUDGMENT:
This Civil Miscellaneous Appeal is filed by the appellant - applicant
aggrieved by the order dated 28.02.2018 passed in O.A.II(U).No.227 of 2014 by
the Railway Claims Tribunal, Secunderabad Bench at Secunderabad.
2. The respondent - Railways was set ex-parte on 26.07.2022.
3. Heard the learned counsel for the appellant.
4. Learned counsel for the appellant - applicant submitted that the Tribunal
grossly erred in not awarding interest, even though it was made mandate by the
Hon'ble Apex Court in Thazhathe Purayil Surabi & Others v. Union of
India and Another1 and Rathi Menon v. Union of India 2 and prayed to award
interest as per the above judgments of the Hon'ble Apex Court.
5. Perused the record.
6. The Tribunal while awarding statutory compensation of Rs.8.00 lakhs to
the applicant observed that it did not find justification to allow interest, as the
applicant was allowed enhanced compensation and grant of interest in the said
2009 ACJ 2444
2001 ACJ 721
Dr.GRR, J
cma_112_2019
circumstances would amount to granting double benefit, which was
impermissible.
7. The Hon'ble Apex Court in Thazhathe Purayil Surabi & Others v.
Union of India and Another (cited supra), which was also a case decided
under Section 124 and Section 124-A of the Railways Act, 1989, observed that:
"10. In the case of Dr. K.R. Tandon vs. Om
Prakash & Another [(1998) 8 SCC 421], which
was also a claim for compensation under
the Motor Vehicles Act, the grant of interest on
the compensation award was not only upheld but
keeping in mind the surrounding circumstances,
this Court also enhanced the rate of interest from
6% to 12% from the date of the application
being made. It was held that omission on the
part of the Courts below to award interest,
irrespective of its rate, from the date of the
application was held to be unjustified."
It was further held that:
"24. In our view, both the Railway Claims
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."
Dr.GRR, J
cma_112_2019
8. In Union of India v. Rina Devi 3 , the Hon'ble Apex Court while
considering the aspect of rate of interest, held that:
"18. As already observed, though this Court
in Thazhathe Purayil Sarabi (supra) held that
rate of interest has to be at the rate of 6% from
the date of application till the date of the award
and 9% thereafter and 9% rate of interest was
awarded from the date of application in
Mohamadi v. Union of India [2011 ACJ 2356],
rate of interest has to be reasonable rate at par
with accident claim cases. We are of the view
that in absence of any specific statutory
provision, interest can be awarded from the date
of accident itself when the liability of the
Railways arises upto the date of payment,
without any difference in the stages. Legal
position in this regard is at par with the cases
of accident claims under the Motor Vehicles
Act, 1988. Conflicting views stand resolved in
this manner."
9. As seen from the above judgments of the Hon'ble Apex Court, the
Railway Claims Tribunal erred in not awarding interest to the appellant -
applicant on the statutory compensation awarded. The appellant - applicant is
entitled for interest @ 12 % per annum from the date of order passed by the
Railway Claims Tribunal.
Civil Appeal No.4945 of 2018 dated 09.05.2018
Dr.GRR, J
cma_112_2019
10. In the result, the Civil Miscellaneous Appeal is allowed modifying the
order dated 28.02.2018 passed in O.A.(II).U.No.227 of 2014 by the Railway
Claims Tribunal, Secunderabad Bench at Secunderabad awarding interest
@ 12 % per annum from the date of order of the Railway Claims Tribunal.
No order as to costs.
As a sequel, miscellaneous applications pending in this appeal, if any
shall stand closed.
_____________________
Dr. G. RADHA RANI, J
Date: 30th July, 2024
Nsk.
