Appellants are entitled to interest on compensation from the date of the accident, as established by precedent.

JUDGMENT

The claimants in O.A.No.9 of 2023 on the files of the Railway Claims Tribunal, Ernakulam Bench, have filed this appeal. The challenge in the appeal is to the limited extent of awarding of interest by the Tribunal only from the date of filing of the written statement by the respondent.

2. Heard the learned counsel for the appellants and the learned Central Government Counsel appearing for the respondent.

3. The learned counsel for the appellants submitted that in view of the law laid down by the Hon’ble Supreme Court inUnion of India v. Rina Devi [ (2019) 3 SCC 572 ] which was quoted with approval subsequently by a Bench of three Judges of the Hon’ble Supreme Court in Doli Rani Saha v. Union of India [ (2024) 9 SCC 656 ], the appellants are entitled for interest on compensation from the date of accident. She submitted that in view of the categorical declaration of law by the Hon’ble Supreme Court in this regard inRina Devi (Supra), the impugned judgment is liable to be modified by awarding interest to the appellants with effect from the date of accident till the date of payment.

4. The learned Central Government Counsel opposed the contentions of the appellants and submitted that granting of interest on compensation is a matter to be left to the discretion of the Tribunal. He relied on the judgment of the Hon’ble Supreme Court in Thazhathe Purayil Sarabi and Others v. Union of India and Another [ (2009) 7 SCC 372 ]. He hence contended that there was nothing wrong in the Tribunal granting interest to the appellants only with effect from the date of filing of the written statement by the respondent.

5. The law in this regard is well settled. In Rina Devi (Supra), the Hon’ble Supreme Court held in unequivocal terms that the liability to pay compensation will accrue from the date of accident and the amount applicable as on that date will be the amount recoverable but the claimant will get interest from the date of accident till the date of payment at such rate as may be considered just and fair from time to time. The Hon’ble Supreme Court further observed that in the absence of any specific statutory provision, interest can be awarded from the date of accident itself up to the date of payment without any difference in the stages.

6. The law laid down in Rina Devi (Supra) in this regard was referred to by a Bench of three Judges of the Hon’ble Supreme Court in Doli Rani Saha (Supra). It is apposite to refer to paragraph 19 of the judgment which reads as under:

“.......19.Rina Devi (supra), this Court held that the claimant would be entitled to interest from the date of accident and, in case the amount so calculated is less than the amount prescribed as on the date of the grant of compensation, the claimant would be entitled to the higher of the two amounts. The principle which has been laid down inRina Devi (supra) serves a salutary purpose. This was noticed in the decision inUnion of India v. Radha Yadav [ (2019) 3 SCC 410 ] where it was observed that “the idea is to afford the benefit of the amendment, to the extent possible”.”

7. The learned counsel for the appellants also pointed out that in some subsequent judgments also the Hon’ble Supreme Court referred to and followed the law laid down in Rina Devi (Supra).

8. The contention of the learned Central Government Counsel appearing for the Railway is that in view of the observation in Paragraph 30 of the judgment in Thazhathe Purayil Sarabi (Supra), the Tribunal must be conceded to have the discretion to award interest appropriately. The contention of the learned Central Governm