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2021 Supreme(Ori) 129

IN THE HIGH COURT OF ORISSA, CUTTACK
K.R. Mohapatra, J.
Kabi Pradhan & Anr. - Appellants
Versus
Union Of India, Represented Through General Manager, East Coast Railway, Bhubaneswar - Respondent
FAO Nos. 262, 264, 265, 267, 275, 359, 363 & 570 of 2020
Decided On : 09-09-2021

Advocates Appeared:
Miss Deepali Mahapatra, Advocate, for the Appellant; Mr. Dhanoj Kumar Sahoo, Advocate, for the Respondent.

The main legal point established in the judgment is the need for judicious exercise of discretion by the Tribunal in determining the mode of payment of the awarded amount, considering the applicability of the Amendment Rules and the claimants' circumstances.

Headnote:

Railway Claims Tribunal Act - Compensation Mode - Amendment Rules - [Railway Accidents and Untoward Incidents (Compensation) Amendment Rules, 2020] - [Rule 5.1, Rule 5.2, Rule 5.3] - The court examined the applicability of the Amendment Rules to the awards and the discretion of the Tribunal to determine the mode of payment. It held that the Amendment Rules did not apply to the award passed before its enforcement and emphasized the need for judicious exercise of discretion by the Tribunal in disbursing the awarded amount. The court directed the Tribunal to release the compensation amount to the claimants, considering their adult status and absence of evidence of illiteracy or disability.

Fact of the Case:

The appeals were filed by claimants aggrieved by the mode of payment of compensation amount by the Railway Claims Tribunal. The legal issue involved the retrospective application of the Amendment Rules and the mode of payment provided in Rule 5.

Finding of the Court:

The court found that the Amendment Rules did not apply to the award passed before its enforcement and emphasized the need for judicious exercise of discretion by the Tribunal in disbursing the awarded amount. It directed the Tribunal to release the compensation amount to the claimants, considering their adult status and absence of evidence of illiteracy or disability.

Issues: The issues involved the retrospective application of the Amendment Rules and the mode of payment provided in Rule 5.

Ratio Decidendi: The court held that the Amendment Rules did not apply to the award passed before its enforcement and emphasized the need for judicious exercise of discretion by the Tribunal in disbursing the awarded amount.

Final Decision: The court allowed all the appeals and directed the Tribunal to disburse the awarded amount to the claimants, preferably within a period of one month from the date of filing of an application along with certified copy of the order.

JUDGMENT

K.R. Mohapatra, J. - This matter is taken up through hybrid mode.

2. These appeals are filed by the claimants under Section 23 of the Railway Claims Tribunal Act, 1987 (for short 'the Act, 1987') being aggrieved by the judgments and awards passed by the Railway Claims Tribunal, Bhubaneswar Bench, Bhubaneswar (for short 'Tribunal') assailing the mode of payment of compensation amount to the respective claimants therein.

3. FAO No. 262 of 2020 has been filed by the parents of the deceased, namely, Kailash Pradhan, assailing the judgment and award dated 7th November, 2019 passed by learned Tribunal in O.A. No. 203 of 2015.

3.1 FAO No. 264 of 2020 has been filed by the husband of the deceased, namely, Mamini @ Mamina Gouda, assailing the judgment and award dated 11th February, 2020 passed by learned Tribunal in O.A. No. 76 of 2017.

3.2 FAO No. 265 of 2020 has been filed by the parents of the deceased, namely, Debananda Majhi, assailing the judgment and award dated 9th January, 2020 passed by learned Tribunal in O.A. No. 59 of 2017.

3.3 FAO No. 267 of 2020 has been filed by the parents of the deceased, namely, Krushna Sisha, assailing the judgment and award dated 21st January, 2020 passed by learned Tribunal in O.A. No. 83 of 2017.

3.4 FAO No. 275 of 2020 has been filed by the widow, minor son and parents of the deceased, namely, Narendra Karad, assailing the judgment and award dated 17th February, 2020 passed by learned Tribunal in O.A. No. 214 of 2013.

3.5 FAO No. 359 of 2020 has been filed by the parents of the deceased, namely, Prakash Biswal, assailing the judgment and award dated 29th January, 2020 passed by learned Tribunal in O.A. No. 41 of 2017.

3.6 FAO No. 363 of 2020 has been filed by the injured assailing the judgment and award dated 6th January, 2020 passed by learned Tribunal in O.A. No. 18 of 2016. 3.7 FAO No. 570 of 2020 has been filed by the widow and parents of the deceased assailing the judgment and award dated 20th February, 2020 passed by learned Tribunal in O.A. No. 145 of 2017.

4. The legal issue involved in all these appeals being similar in nature, the same are taken up for hearing & final disposal and are disposed of by this common judgment.

5. Miss Mahapatra, learned counsel for the Appellants contended that Railway Accidents and Untoward Incidents (Compensation) Amendment Rules, 2020 (for short 'Amendment Rules') being a subordinate legislation cannot be made applicable retrospectively and thus, mode of payment provided in Rule 5 of the said Rules is not applicable to the cases at hand. She further submitted that even for the sake of argument, it is assumed that the rule has a retrospective application in view of sub-rule (2) of Rule 1 of the Amendment Rules, the applicability of Rule 5 being directory in nature, learned Tribunal should not have directed to deposit a major portion of the compensation amount in term deposits instead of releasing it in favour of the Claimants without recording reasons in support thereof. It is her submission that Amendment Rules have no application to the award passed in FAO No. 262 of 2020 as the award was passed much prior to the date when the said Amendment Rules came into force. She further submitted that Rules have been promulgated keeping in mind the illiteracy and other disabling factors of the claimants impairing the judicious use of compensation. In all these appeals, the Claimants- Appellants are able bodied adults and have no disability which would attract the provisions of Rules 5.1 and 5.2 of the Amendment Rules.

None of the Claimants are also minor or persons of unsound mind.

Thus, learned Tribunal has committed an error of law in directing to deposit a major portion of the awarded amount to be kept in fixed deposit. In support of her case, she relied upon the orders passed in W.P.(C) No. 8867 of 2020 disposed of on 7th December, 2020 by the Delhi High Court, Civil Revision No. 3730 of 2019 disposed of on 8th April, 2021 by Punjab and Haryana High Court, FAO

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