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Allahabad High Court

SMT KIRAN AND ANOTHERversusUNION OF INDIA AND ANOTHER

Decided

Holding

The High Court modified the Tribunal's award, directing 75% of the compensation to the wife and 50% to the father to be released immediately, with the balance invested for three years.

Summary

The petitioners challenged the Railway Accident Claims Tribunal's order that released only Rs.40,000 of a Rs.4,00,000 compensation award for the death of the husband/father in a 2019 railway accident, arguing it was inequitable. The Tribunal had directed the balance to be kept in a fixed deposit for three years, citing a general principle of partial release. The High Court examined whether this principle could be rigidly applied without considering the claimants' circumstances. It held that discretion must be exercised to ensure a reasonable amount is released promptly, especially for dependents of the deceased. Accordingly, the Court modified the award, ordering 75% of the amount to the wife and 50% to the father to be released within four weeks, with the remainder invested, and disposed of the writ petition.

Issues considered

  • Whether the partial release of compensation amounting to Rs.40,000 is unjust and inequitable.
  • Whether the principle of part payment and investment of the balance can be applied as a rule of thumb in all railway accident compensation cases.
  • Whether the High Court can modify the Tribunal's award to release a larger proportion of the compensation.

Subjects

  • Railway Accident Claims Tribunal
  • compensation
  • partial release
  • fixed deposit
  • discretion
  • writ petition
  • Allahabad High Court
  • railway accident

Judgment

          HIGH COURT OF JUDICATURE AT ALLAHABAD
                            WRIT - C No. - 10369 of 2026

Smt Kiran And Another
                                                                      .....Petitioner(s)
                                        Versus

Union Of India And Another
                                                                   .....Respondent(s)

Counsel for Petitioner(s)                   :    Shiv Babu Dubey
Counsel for Respondent(s)                   :    A.S.G.I., Anupama Parashar

Court No. - 5
                  HON'BLE MANISH KUMAR NIGAM, J.

1. Heard Sri Shiv Kumar Dubey, learned counsel for the petitioners, Sri Anupama
Parashar, learned counsel for the respondent and perused the record.

2. The solitary grievance of the petitioners is that the amount of Rs. 40,000/- has been
directed to be released in favour of the petitioners by the impugned award of the
Railway Accident Claims Tribunal dated 29.12.2023 is inequitable, unjust and grossly
inadequate. It defeats the purpose of award of compensation for death caused to the
husband of the petitioner No. 1 in a railway accident.

3. A perusal of the record reveals that in a railway accident occurred on 16-
17.03.2019, Raghvendra, husband of petitioner No. 1 suffered fatal injuries and died.
Arising therefrom, the petitioners instituted a claim petition on 23.12.2019. It has been
decided on 29.12.2023 almost four years after the occurrence of the accident. Even
then, by that award, the Tribunal has awarded Rs. 3,00,000/- to the petitioner No. 1
and Rs. 1,00,000/- to petitioner No. 2.

4. The Tribunal has provided for release of Rs. 40,000/- to the petitioners and the
balance is to be deposited in Fixed Deposit for a period of three years.

5. Petitioners are aggrieved by the wholly inadequate amount directed to be released,
in a mechanical manner. Looking at the total compensation awarded, a sum of Rs.
40,000/- would be released at present though the petitioners claim that compensation
of Rs. 4,00,000/- has been awarded. At present, the petitioners pray for release of at
least fifty per cent of the awarded amount.

6. On the other hand, learned counsel for the Railways would submit that the order
restraining release of ninety per cent of the award is only in the interest of the
petitioners as they are likely to receive a higher amount after three years upon accrual
of interest.

7. Having heard learned counsel for the parties and having perused the record, while
there can be no dispute to the principle universally applied in such cases where part
compensation amount is released at the time of the award being made and the balance
amount is invested for the benefit of the claimants, at the same time, it cannot be
applied as a rule of thumb in all cases. In that, individual facts and circumstances must
dictate the exercise of discretion, in such matters. The claimant who lost her husband
and on who certain dependency may also be claimed cannot be forced to litigate for
                                                                                                    WRIC No. 10369 of 2026
                                                                        2

                                    years to earn an award of compensation and then be made to wait for further years to
                                    receive that compensation owing to exercise of discretion by the Court, ostensibly in
                                    the interest of such claimant.

                                    8. Therefore, the above principle invoked by the learned Tribunal must be blended
                                    with practicality so as to release a reasonable amount, keeping in mind the overall
                                    circumstances of the case.

                                    9. In the present case, petitioner No. 1 is the wife of the deceased and petitioner No. 2
                                    is father of the deceased. They have waited for four years from the occurrence of
                                    death for award of the compensation. The compensation awarded at the moment is
                                    also not excessive but a modest sum of Rs. 4,00,000/-.

                                    10. Accordingly, the award dated 29.12.2023 shall stand modified.

                                    11. Let 75% of the awarded amount to petitioner No. 1 i.e. Rs. 2,25,000/- and 50% of
                                    the awarded amount to petitioner No. 2 i.e. Rs. 50,000/- along with proportionate
                                    interest be released within a period of four weeks from the date of production of
                                    certified copy of this order. The balance amount shall be invested and retained in
                                    highest bearing term deposit in a nationalized bank for a period of three years.

                                    12. With the above observations, the present writ petition is disposed of.

                                    13. It is made clear that any amount paid in compliance of the award may be adjusted
                                    against the amount to be released in pursuance of this order.

                                    14. Also, this order has been passed independent of the right of the petitioners to claim
                                    enhancement, if advised.



                                                                                            (Manish Kumar Nigam,J.)
                                    March 19, 2026
                                    Nitika Sri.




Digitally signed by :-
NITIKA SRIVASTAVA
High Court of Judicature at Allahabad


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