Allahabad High Court
PURSOTTAMversusUNION OF INDIA AND ANOTHER
- Decided
- Bench
- VIKAS BUDHWAR
Holding
The court modified the award, directing release of 50% of the compensation with interest and investing the remaining amount in a term deposit for three years.
Summary
The petitioner, whose son died after falling from a moving train, obtained a compensation award of Rs.8,00,000 from a railway tribunal, with only 20% released and the balance directed to a fixed deposit. The petitioner filed a writ petition seeking release of the remaining 80% on grounds of financial hardship. The respondents argued that retaining the balance in deposit was for the benefit of the legal heirs and that the railway had not challenged the award. The High Court held that while partial release and deposit is a general practice, discretion must be exercised based on individual circumstances, and the petitioners' need warranted a different approach. Accordingly, the court modified the award, ordering 50% of the amount with interest to be released within four weeks and the balance to be kept in a high‑interest term deposit for three years, and disposed of the writ petition.
Issues considered
- Whether the balance 80% of the compensation award should be released immediately or can be retained in a fixed deposit for the benefit of the legal heirs.
Subjects
- compensation
- railway accident
- fixed deposit
- discretionary relief
- legal heirs
- claim petition
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - C No. - 10782 of 2026
Pursottam
.....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., Gambhir Tripathi
Court No. - 5
HON'BLE VIKAS BUDHWAR, J.
1. Heard Sri Shiv Babu Dubey, learned counsel for the petitioner and Sri
Gambhir Tripathi, learned counsel for the respondents.
2. This Court on 23.03.2026, sought instructions. Today, instructions dated
06.05.2026 have been produced, which are taken on record and marked as
Appendix ‘A’.
3. The case of the petitioner is that on 08.03.2021, the son of the petitioner
was traveling by a local train from Vikhroli to Thakurli Railway Station
holding a second class journey Ticket bearing no. AFC0546277 and he
accidently fell down from the running train and sustained injury and died.
Thereafterr a Claim Petition being Case No. OA(IIU/BSB/261/2025
(Purushottam V/s Union of India through General Manager, Central
Railway, CST, Mumbai) seeking Rs.8,00,000/- compensation, which came
to be decided on 18.02.2026 awarding compensation to the tune of
Rs.8,00,000/- and as per the order in question only 20% was released and
80% was directed to be deposited in the fixed deposit.
5. Aggrieved against the non-release of the entire amount the present petition
has been preferred.
6. Learned counsel for the writ petitioners has submitted that there is no
logic or rational in not releasing the 80% amount, particularly, when the
admissibility and the entitlement stands endorsed by the Tribunal.
Submission is that in case only 20% amount is being extended then it would
be just like a drop in the ocean which would not be an appropriate.
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2
7. On the other hand, learned counsel for the respondents submits that the
20% amount so released and 80% so directed to be invested is for the benefit
of the legal heirs.
8. I have heard learned counsel for the parties and gone through the records
carefully.
9. Apparently, on account of the accident, which occurred and death of the
deceased, the legal heirs preferred proceedings before the Tribunal which
came to be decided on 18.02.2026. The only question which remains before
this Court is whether there is any logic or not in investing 80% of the
amount and releasing 20%.
10. In the opinion of the Court, since the writ petitioners are before this
Court seeking an appropriate direction for release of the 80% amount on
account of financial circumstances and dire need of the resources at this
stage and bearing in mind the fact that on a specific query being raised to the
learned counsel for the respondents whether the Railway has challenged the
award dated 18.02.2026 or not, the answer is in negative, as the Railway do
not propose to question the same, thus, in the light of the intervening facts
and the circumstances, the matter requires to be considered.
11. 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 legal heirs of the deceased 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 claimants.
12. Accordingly, the award dated 18.02.2026 passed in Claim Petition No.
OA(IIU/BSB/261/2025 (Purushottam V/s Union of India through General
Manager, Central Railway, CST, Mumbai) is modified.
13. Let 50% of the awarded amount to the tune of Rs. 4 lakhs along with
proportionate interest is released in favour of the petitioners within a period
of four weeks from the date of production of certified copy of this order. The
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balance amount shall be invested and retained in highest bearing term
deposit in a nationalized bank for a period of three years.
14. With the above observations, the present writ petition is disposed of.
15. 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.
16. Also, this order shall be passed independent of the right of the petitioners
to claim enhancement, if any.
May 6, 2026
N.S.Rathour
(Vikas Budhwar,J.)
Digitally signed by :-
NIPENDRA SINGH RATHOUR
High Court of Judicature at Allahabad
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