Risal Singh & Anr. v. Union of India

CORAM : HON'BLE MS. JUSTICE NIRMALJIT KAUR Present : Mr. Namit Sharma, Advocate for the appellants Mr. Jagdish Marwaha, Sr. Standing counsel for the respondent NIRMALJIT KAUR, J. (ORAL) C.M. No. 11285-CII of 2009 C.M. is allowed with all just exceptions. FAO No. 2301 of 2009 Learned counsel for the appellants at the outset restricted his claim only to the grant of interest at the rate of 18% per annum from the date of filing of the claim petition till the date of payment. Mr. Jagdish Marwaha, Sr. Standing counsel for Railways does not dispute the claim to the extent of paying interest on the awarded amount from the date of the filing of the claim petition till its realization. However, he expressed his strong reservation on the rate of interest, which should be levied. A similar stand was taken by learned counsel for the respondent before this Court in bunch of appeals decided vide order dated 17.7.2009 passed in FAO No. 110 of 2009 titled as Des Raj versus Union of India and others. While deciding the rate of interest, this Court had held as follows in the above mentioned similar matters :-

Taking into account the observations of the Apex Court made in the cases of Uttaranchal Transport Corporation, Tamil Nadu State Transport Corporation and the Managing FAO No. 2301 of 2009 2 Director, TNSTC (supra), wherein the interest was fixed at the rate of 7.5% per annum instead of 9% and also, at the same time, without losing sight of the fact that in the case of N. Parameswaran Pillai and Rathi Menon (supra), relating to claim under the Railways Act, 1989 and Railway Accidents and Untoward Incidents (Compensation) Rules, 1990, entitling the appellant interest at the rate of 12% per annum, as also keeping in view the interest given by the Banks and other financial institutions, interest at the rate of 9% per annum on the compensation amount so awarded by the Tribunal from the date of filing of the claim petition till its actual realization would be just and fair.

The present appeal is, therefore, covered by the judgment passed in FAO No. 110 of 2009. The present appeal is, accordingly, disposed of in the same terms as FAO No. 110 of 2009 with direction to pay 9% interest on the amount awarded by the tribunal from the date of filing of the appeal till its actual realization.

26.8.2009 (Nirmaljit Kaur) Judge