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2012 DIGILAW 1116 (AP)

S. K. China Dasthagiri s/o. late S. K. Hussain v. Union of India, rep. by the General Manager

2012-11-09

B.N.RAO NALLA

body2012
Judgment This appeal is preferred by the claimant assailing the Award of the Railway Claims Tribunal, Secunderabad Bench, in O.A.A.No.236 of 2005 dated 02.06.2010. The scope of the appeal is only with respect of not granting interest from the date of filing of the application on the awarded amount. 2. The learned counsel for the appellant -claimant contended that the Tribunal erred in granting interest from the date of the Award, instead of from the date of application, on the ground that the claimant approached the Tribunal for claiming compensation with a delay of 1403 days and he is not entitled for the grant of interest from the date of filing of the application. The Tribunal ought to have granted interest from the date of the application as once the condone delay petition filed by the claimant is allowed, the claimant is entitled to interest on the adjudged sum from the date of the application. 3. Heard the learned counsel on either side and perused the material available on record. 4. It is to be noted that once the Tribunal condoned the delay of 1403 days in filing the application after taking into consideration the reasons and sufficient cause, the Tribunal is estopped from observing that the appellant -claimant approached it for claiming compensation with a delay of 1403 days and therefore, he is not entitled for the grant of interest from the date of application. As such, the Tribunal is not justified depriving the legitimate claim of interest by the appellant-claimant. The Tribunal ought to have granted the interest on the awarded amount as claimed by the appellant -claimant. The acceptance of the awarded amount by the claimant towards full and final settlement cannot be a defence proper. Further, in the decision in The Oriental Insurance Co. Ltd. v. Siby George & Ors. The Tribunal ought to have granted the interest on the awarded amount as claimed by the appellant -claimant. The acceptance of the awarded amount by the claimant towards full and final settlement cannot be a defence proper. Further, in the decision in The Oriental Insurance Co. Ltd. v. Siby George & Ors. (2012 (1) Decisions Today (SC)383), the Apex Court, while referring the judgment of a four judge Bench in Pratap Narain Singh Deo v. Srinivas Sabata, ( (1976) 1 SCC 289 ) wherein it was held that an employer becomes liable to pay compensation as soon as the personal injury is caused to the workmen by the accident which arose out of and in the course of employment and thus the relevant date for determination of the rate of compensation is the date of the accident and not the date of adjudication of the claim, has confirmed the order of the Commissioner for Workmen's Compensation, Ernakulam, who granted the interest on the awarded amount from the date of the accident. It is settled law that payment of interest is basically compensation for being denied the use of the money during the period in which the same could have been made available to the claimants. 5. Therefore, in view of the above reasons and in the light of the decision of the Apex Court as referred supra, the claimants may be granted interest from the date of the accident, though the interest is claimed from the date of the application, and the same is hereby granted. 6. In the result, the C.M.A. is partly allowed holding that the appellant -claimant is entitled to interest at 6% per annum on the awarded sum from the date of the accident till realization and the impugned order is accordingly modified. There shall be no order as to costs.