Allowed

Shiv Mangal Singh And Ors. v. Union Of India Through The General Manager East Central Railway

Jharkhand HC7 Oct 2020MA/96/2016

Case brief

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What is this about?

The High Court allowed an appeal and directed the respondent to pay simple interest of 7.5% per annum on compensation awarded by the Railway Claims Tribunal for a railway accident, from the date of filing the claim application until actual payment.

What did the court decide?

Directed the respondent to pay simple interest @ 7.5% from the date of filing of the claim application dated 28.12.2007 till the actual date of payment made by the Railway to the claimants within a pe

Shiv Mangal Singh And Ors. Vs Union Of… — Civil Procedure and Limitation | Jharkhand HC (2020)

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IN THE HIGH COURT OF JHARKHAND AT RANCHI

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(Civil Miscellaneous Appellate Jurisdiction) M.A. No. 96 of 2016

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…...

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Shiv Mangal Singh

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Jagdamba Singh

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Bindeshari Singh …… Appellants

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Versus

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Union of India through the General Manager, East Central Railway, Hajipur, Bihar

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……Respondent

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CORAM: HON'BLE MR. JUSTICE KAILASH PRASAD DEO (Through : Video Conferencing)

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For the Appellants : Mr. Rajesh Kumar Jha, Advocate For the Respondent : Mr. Mahesh Tewari, Advocate

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07/Dated: 07/10/2020.

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Heard, learned counsel for the parties.

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Learned counsel for the appellants has submitted that claim application vide No.OA(IIU)/RNC/2010/0090 has been allowed by the learned Railway Claims Tribunal, Ranchi Bench, Ranchi on 28.04.2015 by granting compensation of Rs.4 Lacs, but no interest has been granted though the incident took place on 06/07.06.2007, the application was filed on 28.12.2007 which was allowed on 28.04.2015, as such, the learned Tribunal has committed an error in view of the judgment passed by the Hon'ble Apex Court in the case of T.P. Sarabi and others vs. Union of Indian and another, reported in 2009(7) SCC 372 at para 38, which is profitably quoted hereunder:-

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“38. As we have indicated earlier, payment of interest is basically compensation for being denied the use of the money during the period in which the same could have been made available to the claimants. 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.”

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In the case of Union of India vs. Dilip & Ors. in Civil Appeal No.9124 of 2019 which has considered the decision of Union of India vs. Rina Devi, reported in [(2019) 3 SCC 572] and the judgment passed by the Hon'ble Apex Court in the case of T.P. Sarabi (supra), whereby the Apex Court has held that rate of interest ought to have @ 7.5% per annum. Considering the same, this Court may also allow the appeal directing the respondent to pay the interest, as no default clause has been mentioned by the learned Tribunal in not granting interest rather establish principle relates to the payment of interest over money claimed, as such, this money which was not utilized during the period in which the same could have been made available to the claimants, as such, the claimants are entitled for the same.

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-2-

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Learned counsel for the respondent has submitted that in the memo of appeal the appellants have not prayed for interest, apart from this appellants have not stated in his memo of appeal that there was no deliberate laches on the part of the appellants in disposal of the appeal, as such, the interest may not be granted to the appellants/claimants.

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Considering the rival submissions of the parties, looking into the facts and circumstances and the judgment passed by the Hon'ble Apex Court in the cases of T.P. Sarabi (Supra), Dilip (Supra) and Rina Devi (supra), this Court is inclined to allow the appeal directing the respondent to pay the simple interest @ 7.5% from the date of filing of the claim application dated 28.12.2007 till the actual date of payment made by the Railway to the claimants within a period of 90 days from today.

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Accordingly the instant appeal is hereby allowed.

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( Kailash Prasad Deo, J.)

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sandeep/R.S-

Shiv Mangal Singh And Ors. v. Union Of India Through The General Manager East Central Railway

Case brief

What is this about?

What did the court decide?

Shiv Mangal Singh And Ors. v. Union Of India Through The General Manager East Central Railway

Case brief

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