Allahabad High Court
CHINKAN AND ANOTHERversusUNION OF INDIA AND ANOTHER
- Decided
- Bench
- MANISH KUMAR NIGAM
Holding
The Court held that the discretion to retain part of the compensation in deposit must consider the claimant's circumstances and therefore modified the award to release 75% of the amount.
Summary
The petitioners, parents of a son who died in a railway accident on 03‑06‑2010, obtained a compensation award of Rs 8,00,000 from the Railway Accident Claims Tribunal on 30‑05‑2024, but the Tribunal ordered that only Rs 80,000 be released immediately with the balance kept in a fixed deposit for three years. The petitioners challenged this partial release as inequitable and sought the entire amount to be paid at once. The respondent (Railways) argued that retaining ninety percent of the award was in the petitioners' interest because interest would accrue on the deposit. The High Court examined the principle that part of the award may be kept in deposit but emphasized that discretion must be guided by the specific facts, especially the long delay of fourteen years and the petitioners' dependency. Accordingly, the Court modified the award, directing that 75% of the compensation (Rs 6,00,000) with interest be released within four weeks, while the balance be invested for three years. The writ petition was thereafter disposed.
Issues considered
- Whether the partial release of the compensation award by the Railway Accident Claims Tribunal is appropriate in the facts of the case
- Whether the High Court can modify the Tribunal's order to release a larger proportion of the awarded compensation
Subjects
- Railway Accident Claims Tribunal
- compensation award
- partial release
- fixed deposit
- judicial discretion
- high court
- writ petition
- railway accident
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - C No. - 10463 of 2026
Chinkan And Another
.....Petitioner(s)
Versus
Union Of India And Another
.....Respondent(s)
Counsel for Petitioner(s) : Ashok Kumar Singh, Gaurav Singh
Counsel for Respondent(s) : A.S.G.I., Anita Srivastava
Court No. - 5
HON'BLE MANISH KUMAR NIGAM, J.
1. Heard Sri Ashok Kumar Singh, learned counsel for the petitioners, Sri
Anita Srivastava, learned counsel for the respondent and perused the
record.
2. The solitary grievance of the petitioners is that the amount of Rs.
80,000/- has been directed to be released in favour of the
claimant/petitioners by the impugned award of the Railway Accident
Claims Tribunal dated 30.05.2024 is inequitable, unjust and grossly
inadequate. It defeats the purpose of award of compensation for death
caused to the son of the present petitioners in a railway accident.
3. A perusal of the record reveals that in a railway accident occurred on
03.06.2010, Chaturdarshi, son of the petitioners suffered fatal injuries
and died. Arising therefrom, the petitioners instituted a claim petition on
18.04.2011. It has been decided on 30.05.2024, almost fourteen years
after the occurrence of the accident. Even then, by that award, the
Tribunal has awarded Rs. 8,00,000/- (in all) to the petitioners.
4. The Tribunal has provided for release of Rs. 80,000/- 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. 80,000/- would be released at present though the
WRIC No. 10463 of 2026
2
petitioners claim that compensation of Rs. 8,00,000/- has been awarded.
At present, the petitioners pray for release of entire 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 claimants who lost their son
and on who certain dependency may also be claimed cannot be forced to
litigate for 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, petitioners are parents of the deceased. They have
waited for almost fourteen 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. 8,00,000/-.
10. Accordingly, the award dated 30.05.2024 shall stand modified.
11. Let 75% of the awarded amount i.e. Rs. 6,00,000/- along with
proportionate interest be released in favour of the petitioners 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.
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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./Rishabh
Digitally signed by :-
NITIKA SRIVASTAVA
High Court of Judicature at Allahabad
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