The Hindu : Rly. tribunal cannot award lower compensation: SC

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Friday, May 09, 2003

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Rly. tribunal cannot award lower compensation: SC

By Our Legal Correspondent

NEW DELHI May. 8. The Supreme Court has held that the Railway Claims Tribunal or the High Court have no discretion to award a lower compensation than what is prescribed under the railway accident compensation rules.

A Bench, comprising Justice S.N. Variava and Justice B.N. Agrawal, gave this ruling while allowing an appeal challenging the award of the tribunal and upheld by the High Court reducing the compensation amount.

In this case, a railway accident took place on November 26, 1998 in which the son of Sabitri Sahoo, appellant who was a signalman in the Army died.

The tribunal awarded Rs. 1.84 lakhs as compensation against Rs. 4 lakhs prescribed under the schedule of the compensation rules.

The appellant's appeal before the High Court was dismissed and the present appeal was directed against this order.

Counsel for the petitioner, Parthapratim Chaudhuri, contended that when Sec. 124 of the Railways Act provided for payment of compensation as prescribed under the rules, the tribunal could not reduce the amount.

He pointed out that as per the rules, the compensation payable for death was Rs. 4 lakhs and this amount ought to have been awarded.

Agreeing with the submission, the Bench made it clear that what had been prescribed under the rules was the amount, which had to be paid.

It did not agree with the view taken by the tribunal and the High Court that they had discretion to prescribe a lower amount of compensation.

The Bench therefore, directed the Centre to pay Rs. 4 lakhs as compensation to the appellant within three months after deducting the amount already paid.

The appellant was entitled to 9 per cent interest per annum on the amount to be paid, the Bench said.

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