THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Civil Miscellaneous Appeal No.829 of 2009 Dated:19th October, 2009. Between: A.Sattaiah ….Appellant and The Union of India rep. by its General Manager, South Central Railway, Rail Nilayam at Secunderabad. …Respondent **** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Civil Miscellaneous Appeal No.829 of 2009 JUDGMENT: This Civil Miscellaneous Appeal is directed against the order dated 13.07.2009 passed in O.A.A.No.33 of 2005 on the file of the Railway Claims Tribunal, Secunderabad Bench at Secunderabad, whereby and whereunder the learned Tribunal refused to grant interest on the award amount from the date of the petition to the date of passing of the award. 2. Background facts in a nutshell leading to filing of this C.M.A. by the applicant in O.A.A.No.33 of 2005 are: a) The applicant was working as Railway Gateman at Shadnagar. On 13.07.2000 at about 15.00 hours the applicant boarded the passenger train No.572 by obtaining valid pass from the competent authority to go to Secunderabad. Immediately the train started with jerks due to which, the appellant lost his balance and accidentally fell down from the train and his two legs went under the wheels of the train and almost his two legs were amputated upto above knee. The Guard of the train observed the incident and stopped the train and shifted the appellant to Kachiguda and from there he was shifted to the Railway Hospital, Lallaguda, Secunderabad. The applicant claimed Rs.4.00 Lakhs as compensation for the injuries sustained by him in an untoward accident occurred on 13.07.2000. b) The respondent-Railways filed written statement resisting the claim of the applicant. c) The learned Tribunal formulated the following issues for consideration: “1) Whether the applicant was a bonafide passenger of train No.572 passenger traveling from Shadnagar to Secunderabad on 13.07.2000? 2) Whether the Applicant sustained injuries as a result of an untoward incident of accidental fall from the said train? 3) Whether the applicant is entitled to claim compensation as prayed for? 4) To what relief?” d) On behalf of the applicant, he got himself examined as AW.1 and marked six documents as Exs.A1 to A6. On behalf of the respondent-Railways one witness was examined as RW.1 and one document was marked as Ex.R1. e) The learned Tribunal, on considering the material brought on record and on hearing the counsel appearing for the parties, awarded compensation of Rs.4.00 Lakhs to the applicant and directed the respondent Railway Administration to pay the amount within two months from the date of the order, failing which the applicant shall be entitled to interest thereon at the rate of 9% p.a. from the date of the order till the date of actual payment. The applicant is dis-satisfied with the award because of not granting interest from the date of application. Hence, this C.M.A. 3. Notice before admission came to be ordered on 04.08.2009. The respondent-Railways entered appearance through its Standing Counsel. 4. When this CMA came up for admission, with the consent of the learned counsel appearing for the parties, it is taken up for final disposal at the admission stage. 5. Heard Sri S.Chandra Sekhar, learned counsel appearing for the appellant and Sri B.H.R.Chowdary, learned Standing Counsel appearing for the respondent-Railways. 6. Conflicting opinions existed, as to the award of interest, in the claims presented under the Railway Claims Tribunal Act, 1987. One view was that the Tribunal has the discretion to stipulate the date with effect from which, the interest would accrue and that a claimant does not have the right to insist on award of interest from the date of presentation of the claim petition. In certain cases, it was observed that interest must be awarded from the date of presentation of the claim. 7. The controversy, or the difference of opinion, has been set at rest by the Honourable Supreme Court, through its judgment, dated 14.05.2009, in Civil Appeal No.3658 of 2009 [Arising out of SLP [C] No.26654 of 2008 in Tahazhatha Purayil Sarabi & Ors. V. Union of India (UOI) & Anr.)]. It was held that the amount awarded as compensation by the Railway Claims Tribunal shall carry interest from the date of presentation of the claim petition at 6% p.a. and from the date of award till the date of realization at 9% p.a. For better appreciation, I may refer paras.23 to 25 of the cited judgment, which read as hereunder: “23. In the instant case, the claim for compensation accrued on 13th November, 1998, 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.68/1999) was filed immediately thereafter in 1999. There was no delay on the part of the claimants/appellants in making the claim, which was ultimately granted for the maximum amount of Rs.4 Lakhs on 26th March, 2007. Even if, the appellants 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, since the appellant cannot be faulted for the delay of approximately 8 years in the making of the Award by the Railway Claims Tribunal. Had the Tribunal not delayed the matter for so long, the appellants would have been entitled to the beneficial interest of the amount awarded from a much earlier date and we see no reason why they should be deprived of such benefit. As we have indicated earlier, 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. 24. In our view, both the 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. 25. We, therefore, allow the appeal and modify the order of the High Court dated 24.5.2007 affirming the order of the Trial Court and direct that the awarded sum will carry interest @ 6% simple interest per annum from the date of the application till the date of the Award and, thereafter, at the rate of 9% per annum till the date of actual payment of the same.” 8. In view of the settled proposition of law by the Honourable Supreme Court in the above referred decision, the C.M.A. is allowed in part directing that the amount awarded as compensation by the Tribunal in favour of the appellant shall carry interest at the rate of 6% per annum from the date of presentation of the claim petition till the date of award and thereafter at the rate of 9% per annum till the date of realization. There shall be no order as to costs. ______________________ B.SESHASAYANA REDDY, J. Date: 19th October, 2009. cs