2023-06-02
CLARITY ADDUCED- AMOUNT OF COMPENSATION IN UNTOWARD INCIDENTS PRIOR TO 2017
The Hon’ble High Court of Delhi has
recently clarified the position with respect to compensation to be awarded on
account of demise due to an untoward incident in accordance to recent Supreme
Court’s Judgment on the said issue.
The Division Bench of the Hon’ble
Supreme Court in Kamukayi & Ors. V Union of India & Ors., Civil
Appeal No., 3799 of 2023 arising out of SLP (C) No. 17062/2022 has recently
held and clarified the ambiguity surrounding the aforementioned:
“23. Accordingly and as per above
discussion we allow this appeal and set aside the impugned judgment dated
26.03.2021 passed by the High Court and also the Claims Tribunal dated
29.06.2017. Consequently, claim application is allowed. The appellants are held
entitled for compensation to the tune of Rs. 4,00,000/- along with interest @
7% p.a. from the date of filing the claim application till its realisation. It
is made clear that after applying the rate of interest, if the final figure is
less than Rs. 8,00,000/-, then appellants shall be entitled to Rs. 8,00,000/-.
The amount of compensation be satisfied by the respondents within a period of
eight weeks. No order as to costs.”
The void in the aforementioned
issue, ensued post passing of the Hon’ble Supreme Court’s judgment titled Union
Of India vs Rina Devi, Civil Appeal No. 4945 of 2018 which held:
“19. If the amount so
calculated is less than the amount prescribed as on the date of the award of
the Tribunal, the claimant will be entitled to higher of the two amounts.”
The present matters namely Bibi
Shabnam and Dharmvir, were filed by the Appellants against the order
of the Railway Claims Tribunal (RCT) before the Hon’ble Delhi High Court,
aggrieved by the RCT order which rejected compensation claims of the
Appellants. The said Appeals were allowed and the Hon’ble Delhi High Court set
aside the order of the RCT.
In Bibi Shabnam (FAO) the
Hon’ble Delhi High Court directed compensation as follows:
“In view of the judgment of the
Supreme Court in Union of Inia vs. Rina Devi Civil Appeal No. 4945/2018
pronounced on 09.05.2018 interest can be awarded from the date of the accident
itself when the liability of the Railway arises upto the date of payment.
Accordingly, an interest @ 9% per annum is awarded from the date of accident
i.e. 21.10.2011”.
In Dharmvir (FAO) the
Hon’ble Delhi High Court directed compensation as follows:
“the notified compensation amount
for loss of life in a rail accident was Rs. 4 lacs till 26.12.2016 whereafter
it was revised to Rs. 8 lacs w.e.f. 27.12.2016. Accordingly, an intrest @ 9%
per annum is awarded on Rs. 4 lacs from the date of accident i.e. 01.11.2012
till 26.12.20216 and on Rs. 8 lacs from 27.12.2016 till payment. Aggrieved by
the same, Railways filed a Review Petition in Bibi Shabnam and Dharmvir praying
that compensation should be either 8 L further to which another Review Petition
was filed in Dharmvir”.
As per Rina Devi the Compensation as applicable on the
date of the accident was to be given with reasonable interest and, if
compensation as provided on the date of award of the Tribunal was higher than unrevised amount with
interest, the higher of the two amounts has to be given.
The concern in the above matter
arose when the Petitioners argued on the basis of Rina Devi, that
compensation shall be Rs. 8 Lacs, plus interest @ 9% per annum from the date of
Order till date of Payment which went against Rina Devi.
To counter this, the Senior Panel
Counsel appearing on behalf of the Railways argued that in light of Rina
Devi the correct interpretation for determining compensation was either
compensation as provided on the date of award of the Tribunal or unrevised amount
with interest, the higher of the two amounts were to be given. Further Rina
Devi referred to Kalandi
Charan Sahoo & Anr. V General Manager, South East Central Railways,
Bilaspur (2019) 12 SCC
in which as per similar facts and dates, the Hon’ble Supreme Court fixed
compensation as follows: “direction
was issued for payment of compensation which was applicable at the material
time and the same was assumed to be of Rs.4 lakhs. In that case, the accident
took place in the year 2005 and the award of the Tribunal was in 2009 i.e.
prior to 1st January, 2017.” The Senior Panel Counsel appearing on
behalf of the Railways argued that date of the award of the tribunal would be
the date on which RCT dismissed the claim of the Appellants. As per the Railways
Act 1989, Section 2(3) defines Claims Tribunals as the “Railway
Claims Tribunal established u/s 3 of the Railway Claims Tribunal Act, 1987”
and as per Section 33 a Tribunal is defined as “the Railway Claims
Tribunal established under section 3 of the Railway Claims Tribunal Act, 1987
(54 of 1987) shall, on and from the commencement of Part XIV of Chapter VI of
the Finance Act, 2017 (7 of 2017), be the Tribunal for the purposes of this Act
and the said Tribunal shall exercise the jurisdiction, authority and powers
conferred on it by or under this Act.”. Also Railways Claims Tribunal Act,
1987 as per Section 3, defines Establishment of Railway Claims Tribunal
as “The Central Government shall, by notification, establish a Claims Tribunal,
to be known as the Railway Claims Tribunal, to exercise the jurisdiction,
powers and authority conferred on it by or under this Act 3 [and under Chapter
VII of the Railways Act,1989 (24 of 1989).]”.
After some arguments, on
16.05.2023, the Division bench of the Hon’ble Supreme Court in Kamukayi v UOI,
on similar facts & dates, clarified the abovementioned position, making it
clear that compensation in such circumstances is to be in accordance to the
following:
“23. Accordingly and as per above
discussion we allow this appeal and set aside the impugned judgment dated
26.03.2021 passed by the High Court and also the Claims Tribunal dated
29.06.2017. Consequently, claim application is allowed. The appellants are held
entitled for compensation to the tune of Rs. 4,00,000/- along with interest @
7% p.a. from the date of filing the claim application till its realisation. It
is made clear that after applying the rate of interest, if the final figure is
less than Rs. 8,00,000/-, then appellants shall be entitled to Rs. 8,00,000/-.
The amount of compensation be satisfied by the respondents within a period of
eight weeks. No order as to costs.”
The said judgment was referred by
the Counsel appearing on behalf of the Railways in further course of arguments and
thus, accepting the said submissions and arguments, both the matters were
disposed off in terms of the said Judgement, thereby adducing clarity.
Case Details: Dharmvir v UOI &
Bibi Shabmam Khatoon & Ors v UOI (FAO 28/2016 AND FAO 245/2014)
Coram: HMJ Najmi Waziri
Counsels for the Respondent: Ms
Anushkaa Arora, Senior Panel Counsel for the Railways along with Ms Jyoti Singh, Advocates
Download Copy of order of case here - Dharmvir Order 19.05.2023.pdf
Download Copy of order of case here - Bibi Shabnam Order 19.05.2023.pdf
