Case Note & Summary
The case arises from an untoward incident on 02.10.2003 when Dasarath Yadav, while travelling in a local train from Burdwan to Howrah, peeped his head out of the compartment door and collided with a post, resulting in his death. The Railway Claims Tribunal, Kolkata, held that the deceased was a bona fide passenger and the incident was an untoward incident under Section 123 of the Railways Act, 1989, but denied compensation on the ground that the deceased was victim of his own act. The widow appealed to the Calcutta High Court, which allowed the appeal, holding that the principle of strict liability under Section 124-A applies and awarded compensation of Rs.8,00,000/- with interest at 9% per annum. The Union of India appealed to the Supreme Court, challenging the award of interest on the revised amount. The Supreme Court, relying on its earlier decision in Union of India v. Rina Devi, clarified that compensation is payable as on the date of the accident with interest; if the amount so calculated is less than the amount prescribed as on the date of the award, the claimant is entitled to the higher of the two amounts. The court held that the High Court erred in awarding interest on the sum of Rs.8 lakhs, as the accident occurred before the amendment. However, the court ensured that the respondent would not be affected and would still receive the sum awarded by the High Court. The court also noted safety concerns in Indian Railways and adjourned the matter for eight weeks to consider safety issues.
Headnote
A) Railways Act - Untoward Incident - Compensation - Section 124-A, Railways Act, 1989 - Principle of Strict Liability - The court held that the principle of strict liability applies under Section 124-A, and the Tribunal was not right in denying compensation on the ground that the deceased was victim of his own act (Paras 5, 10). B) Railways Act - Compensation - Quantum - Date of Accident vs. Date of Award - Section 124-A, Railways Act, 1989; Railway Accidents and Untoward Incidents (Compensation) Rules, 1990 - The court clarified that compensation is payable as applicable on the date of the accident with interest; if the amount so calculated is less than the amount prescribed as on the date of the award, the claimant is entitled to the higher of the two amounts (Paras 10-11). C) Railways Act - Interest - Award on Revised Amount - Section 124-A, Railways Act, 1989 - The High Court erred in awarding interest on the revised sum of Rs.8,00,000/-; the correct approach is to calculate interest on the original amount and then compare with the revised amount (Para 11).
Issue of Consideration
Whether the High Court erred in awarding interest on the revised compensation amount of Rs.8,00,000/- when the accident occurred before the amendment, in light of the principle laid down in Union of India v. Rina Devi.
Final Decision
The Supreme Court set aside the impugned judgment of the High Court and allowed the appeals, holding that the High Court erred in awarding interest on the sum of Rs.8 lakhs. However, the respondent was not affected and would be entitled to the sum awarded by the High Court. The matter was adjourned for eight weeks to consider safety issues in Indian Railways.
Law Points
- Compensation payable as on date of accident with interest
- higher of two amounts if revised schedule provides higher compensation
- principle of strict liability under Section 124-A Railways Act
- 1989
