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Union of India v. Radha Yadav

Civil Appeal · 2019 INSC 109Decided 29 Jan 2019
Civil Appeal Nos. 1265-1266 of 2019
Justice Uday Umesh Lalit · Justice Indira Banerjee

Background

In 2003, a railway passenger named Dasarath Yadav died after his head, which was protruding from a moving train's compartment door, collided with a post beside the track. The Railway Claims Tribunal held it was an "untoward incident" entitling his widow to compensation, but then denied payment on the view that the deceased was responsible for his own death. The Calcutta High Court reversed this, applying the principle of strict liability and awarding Rs. 8 lakh (the compensation figure after a 2003 revision) with 9% annual interest. The Union of India challenged only the award of interest on the revised, higher figure.

Decision Breakdown

The Supreme Court applied its own earlier ruling in Union of India v. Rina Devi (2018), which holds that compensation must first be calculated using the amount prescribed as on the date of the accident, with reasonable interest running from that date; if this sum is less than the amount prescribed as on the date of the Tribunal's award, the claimant gets the higher of the two figures, but not both the revised figure and interest on it. Since the accident here occurred before the amount was revised from Rs. 4 lakh to Rs. 8 lakh, the High Court erred in awarding interest on the revised Rs. 8 lakh figure. The Court set aside the High Court's reasoning and allowed the appeal on this point of law, while expressly clarifying the widow would still keep the Rs. 8 lakh already awarded. Separately, on the amicus curiae's request, the Court adjourned for eight weeks a connected but distinct issue about railway safety reports: this did not affect the disposal of the parties' own compensation dispute, which was fully decided.

Lesson Learnt

In railway (and similarly structured) accident compensation claims, the applicable payout is the amount fixed as on the date of the accident plus reasonable interest from then, compared against the amount fixed as on the date of the award, with the claimant getting whichever is higher, not an additional stacking of both the revised amount and interest.

Official source (sci.gov.in)View Judgment (PDF)

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