IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN FRIDAY, THE 20TH JUNE 2008 / 30TH JYAISHTA 1930 MFA.No. 71 of 2008() ------------------------------ (AGAINST JUDGMENT IN O.A. NO.65 OF 2004, RAILWAY CLAIMS TRIBUNAL, ERNAKULAM) APPELLANTS: APPLICANTS ------------------------------------- 1. YESODA.M., W/O.BALAKRISHNAN, CHENDALAM, ATTENGANAM POST, KASARAGODE DT. 2. REMYA K.V., AGED 21 YEARS, D/O.K.BALAKRISHNAN, CHENDALAM, ATTENGANAM POST, KASARAGOD DT. 3. SRUTHI K.V., AGED 17 YEARS, D/O.K.BALAKRISHNAN, CHENDALAM, ATTENGANAM POST, KASARAGODE DT. (MINOR, REP. BY THE IST APPELLANT). BY ADV. SRI.P.NARAYANAN RESPONDENT: RESPONDENT ------------------------------------------ UNION OF INDIA, REPRESENTED BY GENERAL MANAGER, SOUTHERN RAILWAY, CHENNAI. BY ADV. SRI.N.B.SUNIL NATH,SC, RAILWAYS FOR R1 THIS MISC. FIRST APPEAL HAVING COME UP FOR ADMISSION ON 20/06/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: vsv J.B. Koshy & P.N.Ravindran, JJ. -------------------------------------- M.F.A. No. 71 of 2008 --------------------------------------- Dated this the 20th day of June, 2008 Judgment Koshy,J. Husband of the first appellant died due to grievous injuries sustained in an accident while he was travelling in a train. The Railway Claims Tribunal found that his legal representatives (wife and children) are entitled to compensation, but, interest was not awarded from the date of the accident. The tribunal awarded interest if the amount is not paid within 45 days from the date of award. The only dispute is regarding the question of interest. Under section 4 (A) of the Workmen's Compensation Act, interest is payable from the date of accident as the compensation fell due on the date of accident. The amount is fixed under the schedule and compensation should have been paid by the Railways without much delay without even waiting for an application from the claimants before the tribunal. They could have paid the compensation when they approached the Railways instead of filing an application before the tribunal. There is no statutory provision in the Railway Accidents and Untoward Incidents (Compensation) Rules or in M.F.A.No. 71/2008 2 section 124 of the Railways Act for payment of interest. In Motor Vehicles Act also, there is no provision for payment of interest, but, on the basis of the decisions of the Hon'ble Apex Court, it is now settled that interest is payable from the date of application and the rate of interest depends on the rate of interest in the nationalised banks. In the circumstances of the case, we are of the opinion that the appellant is entitled to interest on the compensation awarded from the date of the application till the date of deposit at the rate of 7.5 % per annum. Appeal is allowed partly. J.B.Koshy Judge P.N.Ravindran Judge vaa M.F.A.No. 71/2008 3 J.B. KOSHY AND P.N.RAVINDRAN,JJ. ------------------------------------- M.F.A. No.71 of 2008 ------------------------------------- Judgment Dated:20th June, 2008