Karnataka High Court
Smt Krishnamma vs Union Of India on 24 April, 2009
Author: C.R.Kumaraswamy
Bench: C.R.Kumaraswamy
IN THE HIGH COURT OF KARNATAKA AT BANGALORE.._
DATED THIS THE 24*" DAY OF APRIL 2009".
BEFORE
THE HON'Bi..E MR. JUSTICE C.R. l{U'MAtRA..S\A_t'Kl§§X_' A':
MISCE;___i,AN§OUS F_I_RST APPEA;.__ rs:€:~._;._:_t:_-$35.5 :<")___;__s'._'{'2o(;9__z"
(RCT)f-_
BETWEEN:
1. Smt. Krishnamma, _a ;
Aged about 41 years, '
W/o Late K. Gopalgé' d
2. Kum. Devaki, 5-
Aged about 20 yeiars,
D/0 late K..----Gopai,
3. Kum. G. Pax/iti*ara, -- V
Aged about 164 years, 4'
D/o late-_K_. Gojjal,' .
Since rr7§inor.repres'e_nted by
iV§«--oi:he~-r..& nattutral gua'r'Ci'E'a'n
A-Smt'.uKrkshna.mrh~a,
The '15,' "an fire! |da_ "
-- All are1_'Ees:d_:rigA'?.af
Pilla Re'ddy"-.VCor'ripound,
--.%_d."_j~..«.4Ne.ar Poor'r}a':.Pragath§ School,
" w A.e_Na.:-a'ya napu ra,
4__Doora_va'ainagar Post,
._f:}ariga'lo're--56O O16. APPELLANTS
"S'r"é"R. Krishna Reddy, Adv. )
9./T
AND:
Union of India,
Southern Railways, Chennai,
Rep. by its General Manager. .. it
(By Sriyuths N.S. Sanjay Gowtia, N.S. ii5rasad,;
Haranahaili Associates)
'rms MFA Esffied under secfi6nfl23(1)"otfhé Rayway
Claims Tribunal Act, against the orcier passed
in CLA. No.23/2001 on the fee or Rania, ciauns Tnbunah
Bangalore Bench, allowing the Vaihppiicati:on'&fifed'~.iunlder section
16 of the Railway'Cla'i'ms:=._Tribiinai payment of
compensation. H 1 it it A V. '
This MFA _con'1ilrivg._u€p.,forglfsdgmission this day, the Court
delivered thezfollo-wi_ng,,"' "
lduDGMENT
'wins MFA ksfued under secnon 23(1) ofthe Ranway
i'=E"'Cl'aims Tri.bun,a'i'A,c't,l against the order dated 8.8.2007 passed
'*ihjt;n, No.é3géoo1 on the ffle of Rafiway cnanns Tnbunat
Q'-~._'"Ba'ngda~lo'reBench, allowing the application filed under section
3/,
16 of the Railway Claims Tribunal Act for paymentijoft
compensation.
2) The primary facts of the case are as und_er;:"~-... L.
The deceased K. (Social was_tra\reiii'n*g in fzrofnl"
Chennai to Bangalore on 28.3.200i";s:.:"»8efore~.th'eof
the train at Krishnarajapurarhfiailwnaj/'VA thelvdeceased
with an intention to wash his call, went
near the door of iiostl from the
train accidentally?én'd".':§iil"stVained'i"-iv.n§"u._r1i:es' died at the spot.
3) have denied the case of
the claimants. iKcco'rd.ing to_l'iVt',';Vthe incident occurred due to
the 'own ng o the cieceasved.
substance of the finding of the Tribunal
.as.i4nder: " V
A":ll'Thel"f_lTribunal after considering the oral and
V' V-Vido.cti"meTntary evidence and also the materials placed on
'verecéord, has awarded a compensation of Rs.4,00,000/-- for the
V,
death of the deceased together with interest thereon at 9'%
per annum from the date of the order till the date
payment.
5) Feeiing aggrieved by the irhpulgnled lovi_=_dAer.,'~
appellants have preferred this appe.a"|i,.iV In this.ta;5pea,Vl'i'VVth'e
appellants attacked the order...pertai'nin§':to""ai/vard'of interest
from the date of the order.
6) I have hearcjli§he--_'learn__éd_ VCo"unvselV_for the appeliants
as well as the"i%ela'rn.efd tlielvlrespondent.
7) Le_avrned""€o'unse.i f'o_rV'the appeliants submitted that
t:tie'«Railv~Jtéi:'V {e'.l:aimns Trilbtinal has awarded interest from the
date of date of application eventhough
lV's'-Jiidicial"i$fi'ember'Vlr:i!ya:;s not appointed to the Claims Tribunai
.._lAi'.:a,.n4d't_here waslno sitting on several hearing dates. Learned
'i._'_VV(:o_t_ir'.s'e§.Vi'orj_«the appellant submitted that the appiicatioh was
V' before the Tribunal on 28.5.2001. First hearing was on
Ii;:'1-4.jv.v2oo1. Preliminary proceedings were held up to 8.1.2002.
fix'
There was no sitting from 12.2.2002 to 25.6.2002. Isst:e_s
were framed on 25.6.2002 and again there was no
to 22.11.2006. The respondent's evidence was rec.o:rded.fo'nl M
30.4.2007 and order was pronounced on
counsel for the appellant submitted'«V_t'h_at( tlho._uc_.}h «.
application was filed on 28.5.2001'. wvas.,.di*ape.§ed'p:r
on 8.8.2007. For no fault of Atttie:a'ppi'i:ant'sé.'there was
delay in awarding the -interest has
to be awarded Learned
counsel for the of this Court
in the case (tip; A.iSioi:HEi2 .vs. UNION OF
INDIA reported IVLR and submitted that the
interest has to b'e""aw'arde-dAf'ifonn:Vthe date of the application.
_'_8*)V:LeaTr'n_eld."CoLinsel for the respondent submits as
Vi'-tiiflderi
V"'L}D:Clé'iA§ the Raiiway Claims Tribunal Act and the Rules
.--.fra_m'edthereunder, there is no provision for awarding
'-.fiint_erest on the compensation amount. Even the limit of
O,
Rs.-£00,000/-- is indicated. Therefore there is no question of
awarding interest on the compensation amount. Leawmieuds.
counsel for the respondent supports the impugned
and Order reiating to award of interest. it
unreported decision of the Andhra Pradesh Cuourt
Miscellaneous Appeal Nos.160/2OQ3,<_ 216i,_"3«491!:3i5_f§V'1_and
3860 of 2002 disposed of on andiisuhiimitteidi that
the interest cannot be a':Iiiar.dec'_'Ai date" of the
appiication.
9) Thevi'ori;iy--.Qiggjestiécign'th'at:"arise.s'for my consideration in
this appeal isV*.whethe.rVth'e.la'p.piiC&i[:ts are entitled for interest
from the date of the"app?-.ica*tion"ior from the date of the order
ccccc
"'10).-My'"an'_swe;r'"to the above question is as under for
V'v?'cT.thve.foiiov\}ing reasowins:
€..i/'
11) As per Section-2 of the Interest Act, 19?8, un:es's.
the context otherwise requires, "Court" inciudes a
and an Arbitrator.
12) Section--3 of the Interest Aci;.;die»a'i's
the Court to allow interest. Secti_on-3"ofi'*t.he Inter':e'sté' Acjt."
reads as under:
"3. Power of Court to anew any
proceeding forfgthe 'debt or
damages o_r,.i§na iintwihtich a ciaim
for interest or damages
airead§,I'"oai'<iii.:i},; Cloutrtvttmay, if it thinks
fit, aliow "interest?jt,o entitied to the
debt or datnages' person making such
claim, as the ciaseinay be, at a rate not exceeding
-'W,,.,the..':,.i§urre:nt..,.ratexof""i'i"it'erest, for the whoie or part
*o;f,'t*h.e foviiovgviyng period, that is to say,-
(a)A-.__ if v_t-'rieytA.i,oroceedings relate to a debt: payable
byttvirtue of a written instrument at a certain
AA then, from the date when the debt is
"payable to the date of institution of the
proceedings;
£7/T
(b) if the proceedings do not relate to any such
debt, then, from the date mentioned in this_g.l"
regard in a written notice given by
person entitled or the person making""t_t:1ejV'_t~.:xi'
claim to the person iiable that-E.nterest_:4'Witt it
be claimed, to the date of in,stif{Utionl'0_fi
proceedings:
Provided that where the'--vs.a?mount ofhidrebt
damages has been repaid before,"tvhe"~i..nstitutiovn of}
the proceedings, inter'est _s'haisi_' vvnotfbiel ._aliowed
under this section for"_th_e vivpeirio-'dgiaftjer' such
repayment.
rnentio.ned_ insdb=secti'o«n"(..1__),- I
a) j'odgrnen~t,"'o:rd«e"r*--..torJaward is given for a
sung V.,yv"r'ivich,."' apart from interest on
Eyj'__,':da~njages,"exceeds four thousand rupees,
--v.__'an:d,°' _
tn.e__ represents or includes damages
v_.-i~n_vi',i'respect of personai injuries to the
'~ vviipiaintiff or any other person or in respect
of a person's death.
6/
then, the power conferred by that sub-
section shail be exercised so as to
inciude in that sum interest on those
damages or on such part of them as the_.'W'
Court considers appropriate for the wh_o"l'e"-fj~...,i' v A4
or part of the period from theV__»cia,te'if_i.'V.in %
mentioned in the notice:---to*thye -'dat.efo»f._ V
institution of the Droceed:iDE1.'21'{Aunlesstiéié
Court is satisfied ths'at__.ther'e.V_a're spe'cjVa.iV'_v
reasons why no interest"ishouid".be"egi-vent'
in respect of those d_a:'r':a.g§a_:es'Q"-»t._
(3) Nothing irithis. s*e_ci§io.n4,""--if
(a) shaii appiy..i:n'--reiation".t0'¥':~-'i,*-
(E) or damages upon
% is payabie as of
" .Vr'i-ght_,s"~~--"xby virtue of any
i h"-39.F¢.€m@n*~'F or
any debt or damages upon
which payment of interest is
barred, by virtue of an express
agreement;
b')'"shaii affect --
A :.'.-'(i) the compensation recoverabie for
the dishonour of a béli of exchange,
promissory note or cheque, as
2/
10
defined in Negotiable Instruments
Act, 1881; or
(ii) the provisions of Ruie 2 of Order}.1_"' 3
of the First Scheduie to the Cod.e"--of
Civii Procedure, 190,8,»
C) Shaii empower the Courtwto
interest upon interest."
13) Normaily the Court of
to aiiow interest, therefore.._,_ to:i"ijn§z'e'ig_e:"i'suchAiyeiquitabie
jurisdiction, it wouid be necessary'to;estatii:.A§h:'2'1.e.xistence of
circumstances whic,h"a.§fiir~acts_ equitabie""j_uri_sdfiction. In the
instant 'the"_a'p'p'ei|ant submitted that
since Judicia:i"'.,M'e_mberpipes"ino*t,,'::a.ppointed to the Tribunai,
there waspno usi"ttin'g,V:of it-h2'e'~~-""1i'ribuna| from 12.2.2002 to
,_,:E\1en hthough the appiication was fiied on
28..'5.was disposed of on 8.8.2007. The
"fideiay is to the non--app0intment of the Judicial
..2_2,i'_:Men*.per to the';.Tribunai. Hence the ciaimants shouid not be
5._'_'Vpena2iised2'""hy not paying the interest from the date of the
2' V-f,ap_'p't'icai;iori. It is the contention of the iearried counsei for the
respondent that there is no provision for awarding of interest
Q/,
11
on the compensation amount determined under the Railway
Claims Tribunal Act and the Rules framed thereunderh<.As_i'=-_
stated earlier, Section--2 of the Interest Act :"
Tribunal and an Arbitrator. Section~»3_o.f.__the_'I'n'te'reg.tV"A.cti.V
permits the Court to aliow interest. Th'ereiEor'eV the
can award interest. But the discreti_Vo'n..V_is lei'?
and the Tribunal has to award inteAr.e.st"'h_ax:ing the
facts and circumstances of th"eV:acas'ec_._vffIn instant case, as
Stated earlier Judicial' to the
Tribunal and there 'wasfV_y.rfi;o 'sitting. on Several hearing dates.
The delay inyidiispoisail oi'::€tyhis:"c~aVVs-e ca'n'n'o't' be attributed to the
appellants and' on the deiay is attributable to
the inaction onfthe .part~-._»o'r...-'ii'the Union of India in not
a_i:J'VD'O.il1tiFvl'g:":JL?b_d,:lC§a3 Meiinfib-e--r"to the Tribunal, In that view of
the":rhatt_er;y "has to be awarded from the date of
A Ava'-i...a.pplicatio_n tiil _t.h'e'I.di.ate of payment.
14)"In"-Tavi'ei}v of the above discussion, I pass the
if
12
ORDER
1) This Miscelianeous First Appeal is aiiowed.
2) The order pertaining to award of interest the date of order is modified and interesijisyr..::"t-h"
awarded frem the date of fi_£ing__ths:""e|"ai:é*?{va. application till the date of actuate:pay.rh.eht--a._1 4' ' Gss/~ _ V