IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD PRESENT THE HON'BLE SRI JUSTICE K.C.BHANU CIVIL MISCELLANEOUS APPEAL NO.816 OF 2009 Date:21.09.2011 Between:-
Nuka Ashok and another. And ...Appellants The Union of India and others. ... Respondents THE HON'BLE SRI JUSTICE K.C. BHANU CIVIL MISCELLANEOUS APPEAL NO.816 OF 2009 JUDGMENT:
This Civil Miscellaneous Appeal is directed against the order, dated 03.06.2009 in O.A.A. No.225 of 2004 on the file of the Railway Claims Tribunal, Secunderabad Bench, at Secunderabad, for not granting interest from the date of application till the date of order on the compensation amount of Rs.4,000,000/- for the death of the deceased.
2. Heard.
3. Considering the evidence on record, the Tribunal awarded compensation and that order has become final. The only question is with regard to the payment of interest. The Tribunal has not awarded interest from the date of application till the date of order.
4. No doubt, there is no provision under the Railways Act, 1989, with regard to the payment of interest from the date of application till the date of order. But, at the same time, Section 34 of the Code of Civil Procedure, 1908, and Section 3 of the Interest Act, 1978, provide for grant of interest. Granting of interest during the pendency of the Original Application before the Tribunal is within the discretion of the Tribunal and that discretion has to be exercised judiciously.
5. On this aspect, it is pertinent to refer to a decision of the Honourable Supreme Court in TAHAZHATHE PURAYIL SARABI AND OTHERS VS. UNION OF INDIA AND ANOTHER “We, therefore, allow the appeal and modify order of the High Court dated 24.5.2007 affirming the order of the Trial Court and direct that the awarded sum will carry interest @ 6% simple interest per annum from the date of the application till the date of the Award and, thereafter, at the rate of 9% per annum till the date of actual payment of the same.”
In view of the above decision, the applicants are entitled to simple interest at the rate of 6% per annum from the date of application till the date of order.
6. Accordingly, the Civil Miscellaneous Appeal is allowed. granting simple interest at the rate of 6% per annum from the date of application till the date of order and thereafter, at the rate of 9% per annum till the date of realization. There shall be no order as to costs.
K.C. BHANU, J SEPTEMBER 21, 2011 YVL