THE HON’BLE SRI JUSTICE N.V. RAMANA C.M.A. No. 4 of 2006 Judgment: Aggrieved by the order dated 20.10.2005 passed in O.A.A. No. 262 of 1999 by the Railway Claims Tribunal, Secunderabad Bench, in not granting interest on the compensation awarded from the date of claim, and instead directing the respondent to pay interest at the rate of 6% per annum, in case they fail to pay the compensation awarded within 60 days, the appellants-claimants preferred the present appeal. Though the appellants in the grounds of appeal claimed that the Tribunal ought to have granted interest at the rate of 12% per annum from the date of presentation of application, but today, when the matter is taken up for consideration, the learned counsel for the appellants submitted that having regard to the ratio laid down by the apex Court in Tahazhathe Purayil Sarabi v. Union of India[1], the appellants- claimants are entitled to grant of interest at the rate of 6% per annum from the date of making claim till the date of award, and thereafter, at the rate of 9% per annum till the date of actual payment of the awarded sum. The apex Court, in the said case, while observing that payment of interest is basically compensation for being denied the use of the money during the period which the same could have been made available to the claimants, found fault with the order passed by the High Court, which confirmed the order of the Tribunal, granting interest, except by way of default, and that it was contrary to the established principles relating to payment of interest on money claims held as under: We, therefore, allow the appeal and modify the order of the High Court dated 24.05.2007 affirming the order of the trial court and direct that the awarded sum will carry interest at the rate of 6 per cent simple interest per annum from the date of the application till the date of the award and, thereafter, at the rate of 9 per cent per annum till the date of actual payment of the same. The law laid down by the apex Court, in the aforesaid judgment, is not disputed by the learned counsel for the respondent, and he fairly admitted that the facts of the case being similar, the appellants- claimants are entitled to the same relief as granted by the apex Court in the said case. In view of the above settled legal position, and having regard to the admitted stand taken by the learned counsel for the respondent, we deem it appropriate, and accordingly modify the award passed by the Tribunal, directing that the compensation awarded by the Tribunal shall carry interest at the rate of 6 per cent simple interest per annum from the date of the application till the date of the award and, thereafter, at the rate of 9 per cent per annum till the date of actual payment of the same. The order under appeal is accordingly modified and the appeal is allowed in part. No order as to costs. __________________ JUSTICE N.V. RAMANA 27th January, 2011 IBL [1] 2009 ACJ 2444