Smt. Paravva M Banakar Vs Union of India — Motor Accident Claims | Karnataka HC (2026)

Smt. Paravva M Banakar Vs Union of India — Motor Accident Claims | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Appeal allowed; interest component restructured to 6% per annum from the date of the accident till the date of the order/award, and 9% per annum from the date of order/award till realisation for delayed payment (if the amount is not paid or deposited); 50% of any deposited amount to be released forthwith per the Tribunal's apportionment; pending applications disposed of.

Issue for consideration

Whether the appellants would be entitled to interest from the date of the accident or from the date of the application before the Claims Tribunal? +2 more

Court's answer

The interest component has to be awarded at the rate of 6% per annum from the date of the accident till the date of the order/award (in place of the Tribunal's award of 6% per annum from the date of filing of the application, i.e., 29.11.2022).

Ratio / Principle

In case of non-payment of the compensation till the date of the order/award, the interest component for the period of delay shall be paid by the respondent-Railway Authorities at the rate of 9% per annum from the date of order/award till realisation; if the interest is paid as on the date of the award, incurring interest at 9% per annum for subsequent delay would not arise.

Key takeaways

The appeal is allowed and the impugned order is modified on the interest component: interest shall be paid at 6% per annum from the date of the accident till the date of the order/award, and for subsequent delay, if the amount is not paid or deposited, at 9% per annum from the date of order/award till date of realisation.ratio¶100
50% of the amount, if any deposited, shall be released forthwith in accordance with the apportionment made by the Railway Claims Tribunal in favour of the appellants/applicants.ratio¶101

Detailed headnote1 paragraphs

MFA No.719/2024 (RCT), High Court of Karnataka at Bengaluru (Hon'ble Mr. Justice Pradeep Singh Yerur, oral judgment dated 27.07.2026) — Appeal by claimant-parents (Smt. Paravva M Banakar and Madevappa) of deceased Nagaraj.B.M. against Union of India (South Western Railway, Hubli) solely challenging the interest component of the Railway Claims Tribunal, Bengaluru Bench judgment dt.28.07.2023 in O.A. II (U) No.58/2022, which had awarded Rs.8,00,000/- compensation for death in an untoward incident (bona fide passenger with confirmed ticket who, under confusion, boarded a wrong train at Yeshwantpur and fell from the running train; died 11.04.2021) with interest at 6% p.a. from the date of filing of the application (29.11.2022) till the date of award. Taking into consideration Rina Devi (2019) 3 SCC 572, Radha Yadav (2019) 3 SCC 410, Kamukayi (2023 LiveLaw (SC) 449) and Shrikumar Gupta (2025 LiveLaw (SC) 115), the Court held that interest is to be awarded at 6% per annum from the date of the accident till the date of the order/award, and at 9% per annum from the date of order/award till realisation where payment/deposit of the compensation is delayed; if interest is paid as on the date of the award, no 9% interest arises for subsequent delay. 50% of any deposited amount was ordered released forthwith per the Tribunal's apportionment. Appeal allowed.

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HC-KAR

NC: 2026:KHC:38797 MFA No. 719 of 2024

CNR: KAHC010008632024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 27^TH DAY OF JULY, 2026 BEFORE

THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR

MISCELLANEOUS FIRST APPEAL NO.719 OF 2024 (RCT)

BETWEEN:

SMT.PARAVVA M BANAKAR W/O MADEVAPPA AGED ABOUT 59 YEARS, OCCUPATION COOLIE

MADEVAPPA

S/O RUDRAPPA AGED ABOUT 71 YEARS OCC AGRICULTURE AGED ABOUT 71 YEARS, OCCUPATION: AGRICULTURE BOTH ARE R/AT HIRBASUR HANAGAL TALUK, HAVERI DISTRICT

Digitally signed by GAVRIBIDANUR SUBRAMANYA GUPTA SREENATH

Location: HIGH COURT OF KARNATAKA

(BY SRI. M.R.HIREMATHAD., ADVOCATE)

AND:

UNION OF INDIA

…APPELLANTS

REP.BY THE GENERAL MANAGER, SOUTH WASTERN RAILWAY HUBLI 580 020

…RESPONDENT

(BY SRI.GOWTHAMDEV.C.ULLAL., ADVOCATE)

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THIS MFA IS FILED U/S.23(1) OF RAILWAY CLAIMS TRIBUNAL ACT, 1987, AGAINST THE JUDGMENT DT.28.07.2023 PASSED IN OA II (U) NO.058/2022 ON THE FILE OF THE RAILWAY CLAIMS TRIBUNAL, BENGALURU BENCH, AWARDING COMPENSATION OF RS.8,00,000/- WITH INTEREST AT 12 PERCENT P.A. FROM THE DATE OF ACCIDENT TILL THE DATE OF PAYMENT TOGETHER ON ACCOUNT OF DEATH OF NAGARAJ.B.M IN AN UNTOWARD INCIDENT OF ACCIDENTAL FALL FROM A TRAIN.

THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE PRADEEP SINGH YERUR

ORAL JUDGMENT

This appeal is preferred by the appellants, who are applicants/claimants in O.A. II (U) No.58/2022, aggrieved by the interest awarded by the Railway Claims Tribunal while awarding the compensation.

2. Brief facts of the case are as under:

The appellants are the parents of deceased Nagaraj.B.M., who died in an untoward incident as a bonafide passenger while traveling in the train. The deceased was about to travel from Yeshwantpur to Haveri in train No.06535 - Mysore-Golgumbaz

Superfast Express having a valid and confirmed ticket bearing number PNR 431-1741499 with Berth No.55 in coach S9,

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however the deceased under confusion, boarded the Yeshwantpur-Karwar train and when the said train was about to start from platform No.3 of Yeshwantpur Railway Station, the deceased realized that he had boarded a wrong train and tried to alight, but due to sudden gaining of speed of the train, he accidentally fell down from the running train and sustained grievous injuries. He was shifted to Kanva Hospital for further treatment and thereafter, to Victoria Government Hospital, Bangalore. However, despite best treatment, he succumbed to the injuries on 11.04.2021. FIR was registered in Crime No.047/2021 and after completing the inquest and formalities, post-mortem was conducted. It was opined that deceased sustained injury and died due to 'Septicemia'. The investigation was conducted. The Statutory DRM's Investigation Report was filed and after the matter was concluded before the Claims Tribunal, all issues were taken into consideration and the Claims Tribunal passed an order allowing the claim petition and ordered the payment of Rs.8,00,000/- with interest at 6% per annum from the date of filing of the present application i.e., 29.11.2022 till the date of award to the dependents of the

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deceased as compensation. The award was directed to be deposited within a period of 30 days from the date of receipt of the order and in case of default of deposit of the amount, the interest component was liable to be paid at 6% per annum for subsequent delay.

3. Aggrieved by the said order, the appellants are before this Court questioning the component of interest awarded by the Claims Tribunal and in this appeal, they have sought for interest to be awarded at 6% per annum from the date of accident till the award amount and seeks further interest at 9% from the date of the award till realisation of the compensation.

4. Learned counsel for the appellants contends that the Claims Tribunal has passed the award without taking into consideration the interest that is to be awarded and has awarded interest contrary to the principles of accident cases and the precedents of the Hon'ble Apex Court. In the grounds of the appeal memo, the appellants have stated that the interest component ought to have been awarded at 6% per

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annum from the date of the accident till the award and 9% per annum ought to have been awarded further till realisation. Therefore, he contends there is substantial question of law to be decided in this case with regard to the interest component and seeks to allow the appeal by enhancing the interest component.

5. Learned counsel relies upon the following

judgments of the Hon'ble Apex Court:

i) Shrikumar Gupta & anr. vs. Union of India reported in 2025 LiveLaw (SC) 115;

ii) Union of India vs. Rina Devi reported in (2019) 3 SCC 572;

iii) Union of India vs. Radha Yadav reported in (2019) 3 SCC 410;

iv) Kamukayi & Ors. vs. Union of India and Ors. reported in 2023 LiveLaw (SC) 449.

6. Per contra , learned counsel Sri Gowthamdev.C.Ullal

appearing on behalf of the respondent-Railway Authorities vehemently contends that there is no illegality or perversity in the impugned order passed by the Claims Tribunal. He sustains

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the impugned order. He contends that the Tribunal has awarded interest at 6% per annum from the date of filing of the present application. Learned counsel further contends that the question of awarding 9% interest component from the date of award would not arise since the respondent has paid the compensation in accordance with the order. Learned counsel further contends that the award of interest at the rate of 6% per annum is correct and does not call for interference as the Railways Act does not contemplate the interest component.

7. Learned counsel also contends that the interest requires to be awarded from the date of filing of the application and not from the date of the accident. It is also contended by learned counsel that either way if the amount is deposited or not and even if there is delayed payment, the interest component cannot exceed 6% per annum and he relies upon a judgment of the Hon'ble Apex Court in the case of Savitri Devi

& ors. vs. Union of India & anr. [Petitions(s) for Special Leave to Appeal (C) No(s).11444/2022] to contend that if there is delayed payment pursuant to the date of the award,

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the interest component should be awarded at 6% per annum

and the same would be entitled to the applicants.

8. I have heard learned counsel for the appellants and learned counsel for the respondent.

9. The short points for consideration in this case are:

1. Whether the appellants would be entitled to interest from the date of the accident or from the date of the application before the Claims Tribunal?

2. Whether the appellants are entitled to interest of 9% per annum from the date of award till realization? and

3. Whether the impugned order calls for interference?

10. This issue of interest component has been clearly elaborated and held by the Hon'ble Apex Court in the case of Rina Devi (supra), more specifically at paragraph No.30, which reads as under:

"30. As already observed, though this Court in Thazhathe Purayil held that rate of interest has to be @ 6% from the date of application till the date of

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the award and 9% thereafter and 9% rate of interest was awarded from the date of application in Mohamadi, rate of interest has to be reasonable rate on a par with accident claim cases. We are of the view that in absence of any specific statutory provision, interest can be awarded from the date of accident itself when the liability of the Railways arises up to the date of payment, without any difference in the stages. Legal position in this regard is on a par with the cases of accident claims under the Motor Vehicles Act, 1988. Conflicting views stand resolved in this manner."

11. The Rina Devi's case (supra) is again reiterated in the judgment of Kamukayi's case (supra), wherein the interest is awarded at 7% per annum rather than 6% per annum from the date of filing of the claim application till realization, which is affirmed and also relied upon in Radha Yadav's case (supra).

12. Therefore, I do not find any ambiguity or complexity in deciding this appeal with regard to the interest component, as the Hon'ble Apex Court in the case of Rina Devi

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(supra) has clearly held as to how the interest component has to be decided.

13. Even in the present case on hand, the Claims Tribunal has awarded interest at the rate of 6% per annum from the date of filing the application i.e., 29.11.2022 till the date of award and has awarded 6% per annum for subsequent delay, if any, which is a subject matter of challenge.

14. Having taken into consideration the judgments of the Hon'ble Apex Court in Rina Devi's case (supra), Radha Yadav's case (supra) and Kamukayi's case (supra) and Shrikumar Gupta's case (supra), this Court is of the opinion that the interest component has to be awarded at the rate of 6% per annum from the date of the accident till the date of the order/award and in case of non-payment of the compensation till the date of the order/award, the interest component shall be paid by the respondent-Railway Authorities at the rate of 9% per annum from the date of order/award till realisation and in case the interest is paid as on date of the award, the question

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of incurring interest at 9% per annum for subsequent delay would not arise.

15. Accordingly, I pass the following:

ORDER

i) This appeal is allowed .

ii) The interest component shall be paid at 6% per annum from the date of the accident till the date of the order/award and for subsequent delay, if the amount is not paid or deposited, the interest component for delayed payment shall be at 9% per annum from the date of order/award till date of realisation.

iii) 50% of the amount, if any deposited, shall be ordered to be released in accordance to the apportionment made by the Railway Claims Tribunal in favour of the appellants/applicants, forthwith.

Pending applications, if any, stand disposed of.

Sd/(PRADEEP SINGH YERUR) JUDGE

VM

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