Karnataka High Court
D.B.Avalakki - Appellant
Versus
Union of India - Respondent
Decided On : 02-08-00
M.F.A. : 456 of 1999
Railway Accident - Compensation - Indian Railways Act, 1890, Section 82-A, 124, 129 - The court discussed the provisions of the Indian Railways Act, 1890, and the subsequent amendments made to the Railway Accident (Compensation) Rules, 1989 and 1990. The court held that the compensation payable for the death of a passenger should be determined based on the provisions in force at the time of the accident, and not on subsequent amendments. The court also addressed the issue of interest on the compensation amount and held that the Tribunal should have ordered interest at the rate of 6% per annum for a specific period.
Fact of the Case:
The appeal was filed for enhancement of compensation awarded to the parents of a deceased passenger who died in a railway accident. The Tribunal had awarded Rs. 1,00,000/- as compensation without ordering for payment of any interest. The appellants sought modification of the compensation amount and interest from the date of filing the claim petition.
Finding of the Court:
The court found that the compensation for the death of the passenger should be determined based on the provisions in force at the time of the accident, and not on subsequent amendments. The court also held that the Tribunal should have ordered interest at the rate of 6% per annum for a specific period.
Issues: The issues before the court were (i) the determination of compensation payable under the Indian Railways Act, 1890, and (ii) the ordering of interest on the compensation amount by the Tribunal.
Ratio Decidendi: The court held that the compensation payable for the death of a passenger should be determined based on the provisions in force at the time of the accident, and not on subsequent amendments. The court also held that the Tribunal should have ordered interest at the rate of 6% per annum for a specific period.
Final Decision: The appeal was allowed in part, and the court directed the Union of India to deposit the amount of interest at the rate of 6% for a specific period. The appellants were entitled to draw the periodical interest accruing thereon.
( 2 ) ). The Tribunal, on the basis of the material placed before it, has found that the deceased, who was travelling from Belgaum to Mysore by Kuttur Express, had died because of derailment of the said train on 16-11-1988. Accordingly, the Tribunal has awarded Rs. 1,00,000/- as compensation but without ordering for payment of any interest. The amount has been quantified as per the provisions contained in Section 82-A of the Indian Railways Act, 1890 (in short the 'old Act') and the Rules framed thereunder.
( 3 ) ACCORDING to the appellants, the Tribunal has erred in awarding only Rs. 1,00,000/- as compensation since during the pendency of the proceedings before it, the amount of compensation to be awarded in case of death has been raised to Rs. 4,00,000/- in view of the amendment to the Rules and therefore this Court should modify the impugned order to the said extent. The appellants also pray for granting of interest from the date of filing of claim petition till realisation of the amount so awarded.
( 4 ) KEEPING in view the contentions raised on behalf of the appellants, the following two questions of law arise for our consideration, viz. (i) Whether the amount of compensation payable under Section 82-A of the Old Act (corresponding Section is 124 of the Indian Railways Act, 1989) is to be determined on the basis of the statutory Rules as those stood on the date of accident or the same needs to be determined in accordance with the amendments made to the said Rules during the pendency of the claim proceedings. (ii) Whether the Tribunal has erred in not ordering interest on the amount of compensation awarded by it to which the appellants are entitled to law. REG. ISSUE NO. 1.
( 5 ) BEFORE trying to resolve the aforesaid controversies, it is essential to have conspectus of the relevant provisions contained in the Act and Rules.
( 6 ) FOR the first time, by Amendment Act No. III of 1943, Sections 82-A to 82-J were incorporated in the Old Act for adjudication of claims and payment of compensation to victims of train accidents or their heirs.
( 7 ) SECTION 82-A read as under.-Section 82-A. Liability of railway administration in respect of accidents to trains carrying passengers.- (1) When in the course of working a railway an accident occurs, being either a collision between trains of which one is a train carrying passengers or the derailment of or other accident to a train or any part of a train carrying passengers, then, whether or not there has been any wrongful act, neglect or default on the part of the railway administration such as would entitle a person who has been injured or has suffered loss to maintain an action and recover damages in respect thereof, the railway administration shall, notwithstanding any other provision of law to the contrary, be liable to pay compensation to the extent set out in sub-section (2) and to that extent only for loss occasioned by the death of a passenger dying as a result of such accident, and for personal injury and loss, destruction or deterioration of animals or goods owned by the passenger and accompanying the passenger in his compartment or on the train, sustained as a result of such accident. (2) The liability of a railway administration under this section, shall in no case exceed Rs. One lakh in respect of any one person. "
( 8 ) SECTION 82-J of the Old Act empowered the Central Government to make rules for carrying out the objectives of Sections 82-A to 82-H inclusive. Clause (ii) of Section 82-J (2) of the Old Act has specifically provided for making of such Rules for compensation payable in respect of death.
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