Partly allowed

Shaik Moula, Chittoor Dist. and 2 Othrs v. the Union of India, Secbad

Telangana HC12 Oct 2018CMA/35/2013

Case brief

AI extract

What is this about?

This appeal concerned the quantum of interest on compensation awarded by the Railway Claims Tribunal. The court resolved a controversy by directing that the Tribunal must award interest from the date of claim presentation until the award, and from the award until realization.

What did the court decide?

Directed that compensation of Rs.4,00,000 shall carry interest at 6% per annum from the date of presentation of the claim petition till the date of award, and at 9% per annum from the date of award ti

Shaik Moula, Chittoor Dist. and 2 Othrs Vs the Union… — Banking and Recovery | Telangana HC (2018)

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THE HON’BLE DR.JUSTI CE SHAMEEM AKTHER

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C.M.A.No.3 5 of 2 0 1 3

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JUDGMENT:

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This Civil Miscellaneous Appeal, under Section 23 of the Railway Claims Tribunal Act, 1987, is filed by the appellants-applicants, challenging the order, dated 18.10.2012, passed in O.A.A.No.254 of 2007 by the Railway Claims Tribunal, Secunderabad Bench at Secunderabad (‘the Tribunal’, for brevity).

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2 . Heard both sides. Perused the record.

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3 . The learned counsel for the appellants-applicants would contend that the Tribunal awarded interest @ 9% per annum from the date of the award of the Tribunal till realisation, which is contrary to the law laid down by the Apex Court in Tahazh at h e Pu r ay il Sar abi an d Ot h er s Vs. Un ion Of I n dia an d anot h er¹ and ultimately prayed to award interest on the amount granted as compensation @ 6% per annum from the date of presentation of the claim petition before the Tribunal till the date of award; and @ 9% per annum from the date of award till realization.

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4 . On the other hand, the learned Standing Counsel for the respondent-Railways would contend that the appellants-applicants are not entitled for grant of interest @ 6% per annum from the date of presentation of the claim petition before the Tribunal till the date of award. The Tribunal rightly granted interest @ 9% per annum on the amount granted as compensation from the date of the award till realisation. There are no circumstances to interfere with the impugned

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1 2009 ACJ 2444

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order and ultimately prayed to dismiss the appeal by confirming the order under challenge.

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5 . Conflicting opinions existed as to the award of interest on the compensation awarded in the claim petitions filed under the Railway Claims Tribunal Act, 1987. One view was that the Tribunal has the discretion to stipulate the date with effect from which the interest would accrue and that the claimant/ s do not have the right to insist the Tribunal for awarding interest from the date of presentation of the claim petition. In certain cases, it was observed that interest on the compensation must be awarded from the date of presentation of claim.

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6 . The controversy or the difference of opinion has been set at rest by the Apex Court in Tah azh at h e Pu r ay il Sar abi ’s case supra, wherein, it was held that the amount awarded as compensation by the Railway Claims Tribunal shall carry interest @ 6% per annum from the date of presentation of the claim petition till the date of award; and @ 9% per annum from the date of award till realization.

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7 . Following the said decision, this Civil Miscellaneous Appeal is disposed of directing that the compensation of Rs.4,00,000/ - granted by the Tribunal in favour of the appellants-applicants shall carry interest @ 6% per annum from the date of presentation of the claim petition before the Tribunal till the date of award; and @ 9% per annum from the date of award till realization. No costs.

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Pending Miscellaneous Petitions, if any, shall stand closed.

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______________________ Dr . SHAMEEM AKTHER, J

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12^th October, 2018 Bvv

Shaik Moula, Chittoor Dist. and 2 Othrs v. the Union of India, Secbad

Case brief

What is this about?

What did the court decide?

Shaik Moula, Chittoor Dist. and 2 Othrs v. the Union of India, Secbad

Case brief

What is this about?

What did the court decide?

What the court decided

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