IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH & THE HONOURABLE MR. JUSTICE A.M.SHAFFIQUE THURSDAY, THE 22ND DECEMBER 2011 / 1ST POUSHA 1933 MFA.No. 73 of 2007() -------------------- TA.67/1999 of RAILWAY CLAIMS TRIBUNAL, ERNAKULAM .................... APPELLANTS/APPLICANTS ------------------------ 1. KANJIRATHANKUNNEL JOSEPJ,S/O.XAVIER, KANJIRATHANKUNNEL HOUSE,THERMALA, PARIKKALAM P.O.,PIN 670705, KANNUR DISTRICT. 2. MRS. ROSAMMA JOSEPH, W/O.KANJIRATHANKUNNEL JOSEPH, KANJIRATHANKUNNEL HOUSE,THERMALA,PARIKKALAM P.O., PIN 670705,KANNUR DISTRICT. BY ADV. SRI.R.SURENDRAN RESPONDENT/RESPONDENT ------------------------- UNION OF INDIA REPRESENTED BY GENERAL MANAGER,CENTRAL RAILWAY,MUMBAI. ADV. SRI.M.C.CHERIAN,SR.SC.,RAILWAYS FOR R THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 22/12/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.M.JOSEPH & A.M.SHAFFIQUE, JJ. ---------------------------------------------------------- M.F.A. (Railways Act) No. 73 of 2007-C -------------------------------------------------------- Dated this the 22nd day of December, 2011 J U D G M E N T K.M. Joseph, J. The appellant are the applicants before the Railway Claims Tribunal. By the impugned order the Tribunal has awarded sum of Rs.4,00,000/- in aggregate to the appellants. The respondent was directed to pay sum of Rs.2,00,000/- each to the appellants 1 and 2 within 45 days from the date of receipt of a copy of the order failing which the appellants were held entitled to interest @ 6% from the date of the order till the date of realisation. The appeal is filed feeling aggrieved by the refusal of the grant of interest from the date of the application. 2. We heard the learned counsel for the appellants and the learned standing counsel for the respondent. 3. The learned counsel for the appellants would point out that the claim was raised for interest @ 15% from the date of the accident. However, learned counsel for the appellants would limit the claim of interest from the date of 2 M.F.A.73/2007 the application 4. It is not disputed that in a Bench decision of this Court reported in Union of India v. Brigeet Chacko (2007 (3) KLT 603) it is inter alia held as follows: “ There is no provision under the Railways Act or Rules regarding payment of interest. Under S.4A of the Workmen's Compensation Act, interest is payable from the date of accident as that is the date when the compensation become due as held in Pratap Narain Singh Dev. Sreenivas Salathra (1976)1 SCC 289) and Oriental Insurance Company v. Khajuni Devi & Ors. ((2002) 10 SCC 567). In the Motor Vehicles Act also there is no specific provision regarding payment of interest on the compensation awarded. But in view of the various Apex Court decisions, it is now settled that interest is payable from the date of application at such rate at the discretion of the Tribunal. While awarding interest, Tribunal can consider the bank rate also”. The learned counsel for the appellants also brings to our notice the decision reported in Thazhathe Purayil Sarabi v. Union of India [2009(4) KLT 370] (S.C) wherein the Apex 3 M.F.A.73/2007 Court inter alia held as follows: “Neither the Railway Claims Tribunal Act, 1987, nor the Railways Act, 1989, make provision for payment of interest on any awarded amount. While S.16 of the 1987 Act prescribes the procedure for making an application to the Claims Tribunal, the right to receive compensation is contained in Ss.124 and 124-A comprising Chapter XIII of the 1989 Act dealing with the liability of the Railway Administration for death and injury to passengers due too accidents. Even though there is no provision in either of the Acts for payment of interest on the awarded sum, there is no denying the fact that the right to claim compensation accrued on the date of the incident, although, compenssation is to be computed from the date of the Award of the Claims Tribunal. In cases where the statute does not make any specific provision for payment of interest on any awarded sum, the power of the Courts to grant interest can also be referred to from the provisions of the Interest Act, 1978 and the Code of Civil Procedure. When there is no specific provision for grant of interest on any amount due, the Court and even Tribunals have been held to be entitled to award interest in their discretion, 4 M.F.A.73/2007 under the provisions of S.3 of the Interest Act and S.34 of the Civil Procedure Code”. However, the learned counsel for the respondent would point out that the matter was pending in the Tribunal for a long period and that while it is true that the Tribunal was not sitting on many days, the delay in the disposal of the matter can be attributed to the appellants also. She also made available the list of dates where the appellants were absent and the matter had been adjourned on account of the said reason. However, it is not in dispute that the Tribunal was not sitting on many days. No reason has been given in the judgment for denial of interest from the date of application. In such circumstances, we do not see any reason why interest should be refused from the date of the application. In such circumstance, we allow the appeal and modify the order and direct that the appellants shall also be entitled to interest @6% from the date of the application till the date of payment. 5 M.F.A.73/2007 Any amount which has been paid by the respondent towards interest can be adjusted by them. K.M.JOSEPH,JUDGE A.M.SHAFFIQUE, JUDGE. rka