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Judgment
M. G. Giratkar, J
Heard.
Admit.
Heard finally with consent of learned Advocates appearing for the parties.
The present appeal is against the award of Railway Claims Tribunal, Nagpur dated 03.08.2017 in Review Application No. REV/NGP/2017/0010 in
respect of death claim.
On 28.12.2013, the son of the appellant i.e. deceased, namely, Shaikh Irfan Shaikh Raheman was travelling from Bhopal to Nagpur. During the
journey, because of jerk he fell down and died on the spot. The Claim Application was filed before Railway Claims Tribunal, Nagpur. It was allowed
and compensation of Rs.4,00,000/Â was granted. The claimant filed Review Application in view of the recent Central Government Notification dated
22.12.2016, by which amount of compensation of Rs.4,00,000/Â is enhanced to Rs.8,00,000/Â. Accordingly, the Review Application was allowed and
claimant was granted compensation of Rs.8,00,000/Â alongwith interest at the rate of 6% p.a. till the recovery of full amount.
The appellant has challenged the judgment only in respect of rate of interest. It is contended that the Railway Claims Tribunal should have granted
interest at the rate of 12% p.a. from the date of application till the recovery. Hence, the present appeal.
Heard learned Advocate Shri Sable for the appellant. He has submitted that claimant is entitled to interest at the rate of 12% p.a. from the date of
application till recovery of the whole amount.
Learned Advocate Shri Gadkari strongly objected the same on the ground that there is no provision in the Railways Act, 1959 to grant any specific
rate of interest.
As per provisions of Section 34 of the Civil Procedure Code, 1908 and Section 3 of the Interest Act, 1978, it is discretion of the Court to grant
interest.
Learned Advocate Shri Sable pointed out the decision of Hon'ble Apex Court in the case ofT ahazhathe Purayil Sarabi and others Vs. Union of
India and another, reported in 2009 ACJ 2444. The Hon'ble Apex Court has held that:
“the payment of interest is basically compensation for being denied the use of money, interest allowed at 6 per cent per annum from the date of
application till date of award and thereafter at 9 per cent till payment.â€
In para no. 22, the Hon’ble Apex Court has also held that:
“22. In the instant case, the claim for compensation accrued on 13.11.98 when Kunhi Moosa, the husband of the appellant no. 1 died on account of
being thrown out of the moving train. The claim before the Railway Claims Tribunal, Ernakulam (O.A. No.68 of 1999), was filed immediately
thereafter in 1999. There was no delay on the part of claimantsÂappellants in making the claim, which was ultimately granted for the maximum
amount of Rs.4,00,000/Â on 26.3.2007. Even if the appellant may not be entitled to claim interest from the date of the accident, we are of the view
that the claim to interest on the awarded sum has to be allowed from the date of the application till the date of recovery....â€.
In the present case, there is no dispute that whole amount is recovered by the claimant/appellant. Hence, the respondent can not be directed to pay
amount of interest. Amount of interest at the rate of 6% p.a. was granted and it is recovered by the appellant alongwith the principal amount. Now
nothing is to be recovered. Therefore, appellant cannot claim further interest on the amount of compensation.
The decision in the case of Tahazhathe Purayil Sarabi (cited supra) is not applicable to the case in hand. In view of the observations of
Hon’ble Apex court in para no. 22, there is not merit in the appeal.
Accordingly, appeal is dismissed with no order as to costs.