Allahabad High Court
SHIVANAND BISWASH AND ANOTHERversusUNION OF INDIA AND ANOTHER
- Decided
- Bench
- VIKAS BUDHWAR
Holding
The court modified the award, directing release of 50% of the compensation with interest and investment of the balance for three years.
Summary
The petitioners, Shivanand Biswash and another, sought full release of a compensation award of Rs.8,00,000 granted by a tribunal on 26-11-2025 after their son died in a railway accident. The tribunal had ordered that only 10% be released immediately, with the remaining 90% to be placed in a fixed deposit for the benefit of the legal heirs. The petitioners argued that the partial release caused undue hardship and that there was no justification for withholding the bulk of the amount. The respondents contended that the deposit arrangement was standard practice for protecting the heirs' interests. The High Court held that while partial release is a common principle, it should not be applied rigidly and discretion must consider the specific circumstances, ordering that 50% of the award with interest be released within four weeks and the balance be invested in a high‑yield term deposit for three years. The writ petition was consequently disposed.
Issues considered
- Whether the tribunal's order to release only 10% of the compensation and deposit 90% is justified in the facts of this case
- Whether the court can modify the award to release a larger portion of the compensation immediately
Subjects
- compensation award
- railway accident
- fixed deposit
- partial release
- writ petition
- judicial discretion
- financial hardship
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - C No. - 14248 of 2026
Shivanand Biswash And Another
.....Petitioner(s)
Versus
Union Of India And Another
.....Respondent(s)
Counsel for Petitioner(s) : Amit Kumar Sinha, Deepali Srivastava
Counsel for Respondent(s) : Deep Mala Srivastava, C.S.C.
Court No. - 5
HON'BLE VIKAS BUDHWAR, J.
1. Heard Ms. Deepali Srivastava Sinha, learned counsel for the petitioners
and Ms. Deep Mala Srivastava, learned counsel for the respondents.
2. This Court on 16.04.2026, sought instructions. Today, instructions have
been produced, which are taken on record and marked as Appendix ‘A’.
3. The case of the petitioner is that on the fateful day, i.e. on 06.08.2023, son
of the petitioner, namely, Badar Kumar, met with an untoward railway
accident, received grievous injuries resulting into death. A Claim Petition
No. OA(IIu)/BSB/1254/2020, Shivanand Biswash & Another vs. Union of
India came to be preferred, which came to be decided on 26.11.2025
awarding compensation to the tune of Rs.8,00,000/- with the interest @ 9%
per annum and as per the order in question only 10% was released and 90%
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 90% amount, particularly, when the
admissibility and the entitlement stands endorsed by the Tribunal.
Submission is that the petitioners are in dire need of the said amount and in
case only 10% amount is being extended then it would be just like a drop in
the ocean which would not be an appropriate.
7. On the other hand, learned counsel for the respondents submits that the
10% amount so released and 90% so directed to be invested is for the benefit
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2
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 26.11.2025. The only question which remains before
this Court is whether there is any logic or not in investing 90% of the
amount and releasing 10%.
10. In the opinion of the Court, since the writ petitioners are before this
Court seeking an appropriate direction for release of the 90% 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 26.11.2025 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 26.11.2025 passed in Claim Petition No.
OA(IIu)/BSB/1254/2020, Shivanand Biswash & Another vs. Union of India
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
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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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 7, 2026
N.S.Rathour
(Vikas Budhwar,J.)
Digitally signed by :-
NIPENDRA SINGH RATHOUR
High Court of Judicature at Allahabad
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