Sandeep Singh and Others Vs Union of India — Punjab & Haryana HC (2025) — LawSathi Research

Sandeep Singh and Others Vs Union of India — Punjab & Haryana HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Appeal disposed of in the aforesaid terms (parameters of Kamaljit Kaur, FAO No.4331 of 2024); impugned order dated 20.06.2025 of the Railway Claims Tribunal, Chandigarh modified so that the entire amount awarded to the claimants is released rather than kept in fixed deposits; pending application(s), if any, shall also stand disposed off.

Issue for consideration

Whether the Tribunal's direction that 90% of the awarded compensation be kept in fixed deposits should stand where the appellant-claimants are majors.

Court's answer

Disposing of the appeal in the terms of its earlier decision in Kamaljit Kaur and others v. Union of India (FAO No.4331 of 2024), this Court held that fixed-deposit directions are warranted only for claimants who are minors, physically disabled, or exposed to unscrupulous elements/future-treatment needs; where claimants are majors with no such apprehension, the compensation amount need not be invested in fixed deposits.

Ratio / Principle

The impugned order dated 20.06.2025 passed by the Railway Claims Tribunal, Chandigarh is modified to the extent that the amount awarded to the claimants is ordered to be released.

Detailed headnote1 paragraphs

Punjab and Haryana High Court (Pankaj Jain, J., oral) — Compensation kept in fixed deposits: Appeal by Sandeep Singh and others against that part of the Railway Claims Tribunal, Chandigarh order dated 20.06.2025 directing 90% of the awarded compensation to be kept in fixed deposits despite the claimant-appellants being majors. Adopting the parameters laid down by this Court in Kamaljit Kaur and others v. Union of India, FAO No.4331 of 2024 (decided 12.09.2024) — fixed deposits only where the claimant is a minor, physically disabled, or prone to falling prey to unscrupulous elements or needing future treatment, and not where claimants are majors without such apprehension — the Court disposed of the appeal in those terms, modified the impugned order and directed release of the amount awarded; pending applications stood disposed of.

[139] IN THE HIGH COURT OF P UNJAB AND HARYANA AT CHANDIG A RH

FAO-41 5 8-2025 (O&M) Date of D ecision : 09.07.2025

Sandeep S ingh and others …Appellants

versus

Union of India ….Respondent

Coram : HON’BLE MR. JUSTICE PANKAJ JAIN

Present: Mr. Ujval Mittal, Advocate fo r the appellants. Dr. Anju Sharma, Advocate f or the respondent-UOI.

PANKAJ JAIN, J. (ORAL)

[1] The appellants are aggrieve d of the part of the order passe d by the Trib u nal whereby 90% of the com p ensation amount awarded by the Tribunal has been ordered to be kept in fixed deposits in the name of the claimants even though appellants are m ajors. The issue with respec t to direction s being issued by the Tribunal d irecting the compensation am o unt to be kep t in fixed deposits has been ela b orately dealt with by this Cou r t in the case of Kamaljit Kaur and others V s. Union of India bearing F A O No.4331 of 2024 decided on 12.09.2024 wherein this Court observe d as under:-

"9. Thus, in view of a foresaid decisions, it is evident tha t the guidelines issued by Ape x Court in the case of General Mana g er, Kerala State Road Trans p ort Corporation's ibid, were issue d to protect the rights of the cl a imants, who are:a) the minors; b) under some disability; and c) widows and illit e rate persons

RAJNEESH SHARMA 2025.07.10 17:53 I attest to the accuracy and integrity of this document

FAO-4158-2025 (O&M)

-2-

i.e. those who apprehen d threat at the hands of unscrupu l ous elements and lack fiscal d i scipline. 10. The guidelines are not to be interpreted like statute but n eed to be followed in a mor e pragmatic manner. The Tribunals are right in ordering investm e nt of compensation in Fixed Deposi t s in the case where a claimant is prone to being robbed off the compensation awarded. T hus, the broad parameters that ca n be laid down are that the Tribunals should order Fixed Deposits o nly in those cases where:-

(a) the clai m ant is a minor. From awa r ded compensation the s hare of the minor should be ordere d to be invested in Fix e d Deposits till he/she attains the a g e of majority or till the p arents/guardians show pressing ne e d to spend the amount fo r the benefit of minor; (b) where the c laimant is a physically disabled pe r son owing to some d i sability arising out of birth, injur y or extremely old ag e and the Tribunal is satisfied that the claimant will not b e able to protect his/her money f rom unscrupulous elem e nts; and (c) where futu r e treatment of the claimant needs t o be taken care of by sp e nding amount of compensation.

The list is m erely illustrative and not exhaustiv e . In cases where cla i mants are major and there is no apprehension tha t they may fall prey to unscrupu l ous elements or touts/ u nethical arrangements etc., the am o unt need not be invest e d in Fixed Deposits.

11. In view of aforesaid parameters laid down by this Court, the appeals are allowed. However, in appeals bearing FAO No s .4331 & 4333 of 2024, wherein the claimant(s) are m i nors and in view of the fact that t heir interest needs to b e taken care of, the compensation am o unt of the minors is o rdered to be kept in fixed deposit s till he/she attains t he age of majority or till the parents/guardians exhibit pressing need to take care o f the expenses for the b e tterment of the minors.

RAJNEESH SHARMA 2025.07.10 17:53 I attest to the accuracy and integrity of this document

FAO-4158-2025 (O&M) -3-

[2] The present appeal is thus disposed off in the aforesaid ter m s. Impugne d order dated 20.06.2025 passe d by the Railway Claims Tribu n al, Chandig a rh is modified to the extent that the amount awarded to the claimants is ordered to be released. [3] Pending application(s), if an y , shall also stand disposed off.

(PANKAJ JAIN) JUDGE

09.07.20 2 5 ‘R. Sharma' Whether speaking/ reasoned : Yes/No Whether reportable : Yes/No

RAJNEESH SHARMA 2025.07.10 17:53 I attest to the accuracy and integrity of this document