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IN THE HIGH COURT OF ORISSA AT CUTTACK
B.P.ROUTRAY
Mandodari Sethy – Appellant
Versus
Union Of India, Represented Through The General Manager – Respondent
| Table of Content |
|---|
| 1. overview of case parties and appeal (Para 1 , 2) |
| 2. tribunal's interest calculation challenge (Para 3) |
| 3. legal principles on compensation and interest (Para 4 , 5) |
| 4. final direction for compensation payment (Para 6) |
Judgment :
B.P. Routray, J.
1. Heard Mr. P.K. Mishra, learned counsel for the claimants – Appellants and Mr. B.S. Rayaguru, learned Senior Panel Counsel for Union of India.
2. Present appeal by the Claimants is directed against impugned judgment dated 19th September, 2025 passed by the Railway Claims Tribunal, Bhubaneswar Bench in O.A. No.(IIU)/13/2025.
3. It is submitted on behalf of the Appellants that the Tribunal while granting interest has directed for payment of interest from the date of appearance of the Applicant’s Evidence (AE), i.e. 15th July 2025 till the date of actual payment.
4. In Union of India vs. Rina Devi , 2019 (3) SCC 572 , the Hon’ble Supreme Court has observed as follows:-
“18. The learned Amicus has referred to judgments of this Court in Raman Iron Foundry [Union of India v. Raman Iron Foundry, (1974) 2 SCC 231, para 11] and Kesoram Industries [Kesoram Industries and Cotton Mills Ltd. v. CWT, (1966) 2 SCR 688, para 33 : AIR 1966 SC 137
Compensation liability arises on the accident date with interest payable from that date, ensuring fairness based on established legal principles.
Interest on compensation must accrue from the date of the accident, ensuring claimants receive the higher of two possible compensation amounts based on established legal principles.
Compensation for railway accidents is determined by the applicable rules at the time of the incident, with interest awarded from the date of accrual, not the date of the accident.
Claimants entitled to interest at 12% from the date of the accident under the Workmen’s Compensation Act, ensuring fairness and adherence to beneficial legislation.
Compensation must consider the serious nature of injuries, with entitlement to interest from the date of the accident.
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