Introduction:

In a recent ruling, the Jharkhand High Court rectified a discrepancy in the Railway Claims Tribunal’s decision concerning interest on compensation in a fatal accident case. Justice Pradeep Kumar Srivastava noted an error in withholding interest between the date of the accident and the condonation of delay in filing the claim. The appellants, widow, and two sons, challenged the Tribunal’s award following the accidental fall and death of Sankh Nath Dubey from a train.

Arguments of Both Sides:

The appellants contended that the interest rate should be enhanced and calculated from the date of the accident (25/26.02.2018) instead of the date of admission after condonation of delay (17.03.2021). The Railway, opposing the plea, argued that the delayed admission of the claim petition by the appellants should preclude interest from the date of the incident.

Court’s Judgement:

Justice Srivastava observed that the Tribunal’s decision to withhold interest from the date of the accident to the date of condonation of delay was unjustified. Relying on legal precedents, including Rathi Menon v Union of India (2001) and Union of India v Rina Devi (2019), the court clarified that in the absence of a specific statutory provision, interest can be awarded from the date of the accident itself, without differentiation in stages. The court held the appellants entitled to simple interest at 9% per annum from the date of the accident until the actual payment.