UNION OF INDIA Vs. BANI LAL

JUDGEMENT

(1.) THIS APPEALIS DIRECTED AGAINST TH EJUDGIMENT OF THE RAILWAY CLAIMS TRIBUNAL WHEREBY THE TRIBUNAL HAS AWARDED COMPLICATION OF RS. 1 LAKH IN FAVOUR OF THE DEPENDENTSOF THEDECEASED.THERESPONDENT-CLAIRMAMTS HAVE ALSO BEEN HELD ENTITLED TO INTEREST @ 10% PER ANNUM FROM THE DATE OF FILING OF THE CLAIM APPLICATION TILL REALISATION.

(2.) THE ONLY GROUND TAKEN IN APPEAL IS" THAT THE TRIBUNAL DID NOT HAVE JURISDICTION TO AWARD INTEREST IT IS SUBMITTED BY LEARNED COUNSEL FOR THE APPELLANT THAT THE TRIBUNAL COULD AWARD INTEREST ONLY IF THE ACT SPECIFICALLY AUTHORISES THE TRIBUNAL TO AWARD SUCH INTEREST AND IN THE, ABSENCE OF ANY SUCH PROVISION, THE TRIBUNAL COULD NOT AWARD PENDENTE LITE INTEREST FOR THIS RELIANCE IS PLACED UPON THE JUDGMENTOF THE BOMBAY HIGH COURT IN UNION OF LNDIA V.SANJAY SAMPATRAO GAIKWAD, " ETC., AIR 2002 BOMBAY 436. IN THIS CASE, IT WAS HELD THAT THE COMPENSATION CLAIMED BY THE APPLICANTS HAD TO BE DETERMINED UNDER SECTION 127 OF THE RAILWAYS ACT AND THE SAME DID NOT BECOME PAYABLE AS SOON AS THE CLAIM WAS LODGED BY THE APPLICANT/ PASSENGER. IT WAS HELD THAT THE CLAIM FOR COMPENSATION WAS IN THE FORM OF DAMAGES AND TILL THE DAMAGES ARE ASCERTAINED BY THE APPROPRIATE FORUM IT CANNOT BE SAID THAT THE AMOUNT OF COMPENSATIONBECOMES PAYABLE TILL IT IS DETERMINED OR DECIDED, IT WAS HELD THAT IT WAS NOT AN EXISTING RIGHT OF THE CLAIMANT TO GET WHATEVER IS CLAIMED IN THE APPLICATION. THE AMOUNT OF COMPENSATIONBECOMES PAYABLE AFTER IT IS DETERMINED BY THE TRIBUNAL AND IF THEREAFTER THE RAILWAYS FAIL TO PAY, IT CAN BE DIRECTED TO PAY INTEREST FROM THE DATE OF THE ORDER OF THE DETERMINATION BUT IT CANNOT BE DIRECTED TO PAY INTEREST BEFORE THE CLAIM IS ASCERTAINED OR DECIDED OR DETERMINED BY THE TRIBUNAL. IT WAS HELD THAT THE LIABILITY OF THE RAILWAY ADMINISTRATION WOULD COMMENCE AFTER THE COMPENSATION AMOUNT IS DETERMINED AND NOT THEREAFTER. THE OBSERVATION OF THE BOMBAY HIGH COURT IN IRON AND HARDWARE (INDIA) CO. V. SHAMLAL AND BROTHER, 1904 (6) BOMBAY LAW REPORTER 473, WERE RELIED UPON IN THAT JUDGMENT TO HOLD THAT INTEREST CAN BE PAYABLE ONLY ON THE AMOUNT, WHICH HAS BEEN ASCERTAINED BUT NOT ON THE AMOUNT WHICH IS YET TO BE ASCERTAINED. IT WAS HELD THAT AT THE FIRST INSTANCE, THE TRIBUNAL HAS TO DETERMINE THE QUESTION OF LIABILITY AND THEN TO DETERMINE THE AMOUNT OF COMPENSATION. AFTER DOING SO IT CAN AWARD INTEREST FROM THE DATE OF THE DECISION BUT NOT PRIOR THERETO.

(3.) WITH DUE RESPECT TO THE HON'BLE JUDGE WHO HAS DELIVERED THE SAID JUDGMENT, I AM UNABLE TO AGREE WITH THE SAME. THE PROVISIONS OF INTEREST ACT WERE NOT BROUGHT TO THE NOTICE OF THE BOMBAY HIGH COURT WHEN THE AFORESAID JUDGMENT WAS GIVEN. UNDER SECTION 3 OF THE INTEREST ACT IN ANY PROCEEDINGS FOR THE RECOVERY OF ANY DEBT OR DAMAGES OR IN ANY PROCEEDINGS IN WHICH A CLAIM FOR INTEREST IN RESPECT OF ANY DEBT OR DAMAGES ALREADY PAID IS MADE, THE COURT MAY, IF IT THINKS FIT, ALLOW INTEREST TO THE PERSON ENTITLED TO THE DEBT OR DAMAGES OR TO THE PERSON MAKING SUCH CLAIM, AS THE CASE MAY BE, AT A RATE NOT EXCEEDING THE CURRENT RATE OF INTEREST, FOR THE WHOLE OR PART OF THE FOLLOWING PERIOD, THAT IS TO SAY (A) IF THE PROCEEDINGS RELATE TO A DEBT PAYABLE BY VIRTUE OF WRITTEN INSTRUMENT AT A CERTAIN TIME, THEN, FROM THE DATE WHEN THE DEBT IS PAYABLE TO THE DATE OF INSTITUTION OF THE PROCEEDINGS; AND (B) IF THE PROCEEDINGS DO NOT RELATE TO ANY SUCH DEBT, THEN, FROM THE DATE MENTIONED IN THIS REGARD IN A WRITTEN NOTICE GIVEN BY THE PERSON ENTITLED OR THE PERSON MAKING THE CLAIM TO THE PERSON LIABLE THAT INTEREST WILL BE CLAIMED, TO THE DATE OF INSTITUTION OF THE PROCEEDINGS. UNDER SECTION 5 OF THE INTEREST ACT NOTHING IN THE ACT SHALL AFFECT THE PROVISIONS OF SECTION 34 OF THE CPC. THE COURT IS DENNED IN SECTION 2(A) OF THE ACT AND INCLUDES A "TRIBUNAL" AND AN "ARBITRATOR". SINCE THE COURT HAS BEEN DEFINED IN THE INTEREST ACT TO INCLUDE A "TRIBUNAL" AND AN "ARBITRATOR", IN MY OPINION, THE TRIBUNAL WHILE DECIDING DAMAGES PAYABLE TO APERSON UNDER THE PROVISIONS OF THE RAILWAYS ACT, HAS THE JURISDICTION TO AWARD INTEREST UNDER SECTION 3 OF THE INTEREST ACT.