The South Central Railway v. Chepram Sampurnamma
THE HONOURABLE SRI JUSTICE T.AMARNATH GOUD C.M.A.No.1040 of 2009 JUDGMENT:
The appellant herein presented a claim before the Secunderabad Bench of Railway Claims Tribunal, vide OAA No.21 of 2005 for compensation. The claim petition was allowed vide order dated 05.06.2009 awarding compensation of Rs.4,00,000/-. The tribunal, however, stipulated 60 days time for deposit of the amount of the compensation and awarded interest at the rate of 9% per annum from expiry of that period. The appellant feel aggrieved by the denial of interest, on the compensation, from the date of presentation of the claim petition.
2.
Heard learned counsel for the appellant and learned standing counsel for the Railways.
3.
Conflicting opinions existed, as to the award of interest, in the claims presented under the Railways 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 claim.
4.
The controversy, or the difference of opinion, has been set at rest by the Apex Court in Tahazahathe Purayi Sarabi and others V. Union of India and another1 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% per 1 2009 ACJ 2444
annum, and from the date of award, till the date of realization, at 9% per annum.
5.
Following the same, the appeal is allowed in part, directing that the amount awarded as compensation by the tribunal, in favour of the appellant, shall carry interest at 6% per annum, from the date of presentation of the claim petition, till the date of award, and thereafter, at 9% per annum, till the date of realization. No order as to costs. Miscellaneous petitions, if any, pending in this appeal shall stand closed.
__________________________ T. AMARNATH GOUD, J Date: 12.11.2019 Shr