UNION OF INDIA Vs. SATYAWATI

JUDGEMENT

(1.) Since the common question of law is involved in all these four appeals, the same are being disposed of by this common judgment. These are the four appeals filed by Union of India challenging the award passed by Railway Claims Tribunal, Lucknow allowing interest to the claimants from the date of filing of the claim petition. The limited question which has been urged is that under the provisions of Railways Act,1989, the Tribunal was having no power to award interest to the claimants from the date of application. The interest can be awarded from the date of determination of the amount of compensation i.e. the date of the award. Section 127 of the Act has been pressed into service in support of the submission that the rate of compensation payable in respect of any injury has to be determined by the Claims Tribunal. The argument is that unless such determination is made, no liability could be fastened for payment to the claimant nor any interest could be awarded on such an amount, which has not yet been determined. Section 127 of the Railways Act,1989 reads as under: 127.Determination of compensation in respect of any injury or loss of goods-

(2.) The matter regarding award of interest in a claim petition preferred under the Railways Act from the date of application or from the date of determination of compensation by the Tribunal came up for consideration before the Bombay High Court in the case of Union of India v. Sanjay Sampatrao Gaikwad etc., AIR 2002 Bom.436. The question involved in the aforesaid case related to the provisions of section 123-C 124-A and 127. However, since in the present appeals only the meaning, import and scope of section 127 is involved and has been pressed, therefore, we confine our reasoning to the aforesaid provision only. The Bombay High Court by interpreting the provisions of section 127 observed that the compensation claimed by the applicant has to be determined under section 127 of the Act. It does not become payable as soon as the claim is lodged by the applicant- passenger. The claim for compensation is in the form of damages and till the damages are ascertained by the appropriate forum, it cannot be said that it is an amount of compensation payable till it is determined or decided. It is not an existing right of the claimant to get whatever is claimed in his application. The amount of compensation becomes 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 determination but it cannot be directed to pay interest before the claim is ascertained or decided or determined by the Tribunal. The liability of the Railway Administration would commence after the compensation amount is determined and not therefore.

(3.) The pecuniary liability cannot be ascertained before the determination is made by the Claims Tribunal and in the absence of any such determination, it would be merely speculative to hold that interest can be awarded for a sum, which still remains to be quantified . Interest can be awarded only against the quantified damages and not in the absence of any such determination It is also relevant to mention that that under the Act and the Rules, there is no provision for awarding interest straightaway.