Splitting Compensation into 72 FDs 'Unconscionable': High Court Modifies Railway Tribunal Order

Hyderabad:The Telangana High Court has modified an order of the Railway Claims Tribunal directing a compensation amount of Rs 7.2 lakh to be kept in 72 separate fixed deposits, holding that the arrangement was “unconscionable” and unwarranted.

Justice B. Vijaysen Reddy, while partly allowing a writ petition filed by the claimant, directed that the sum instead be kept in four fixed deposits of 1.8 lakh each, with cumulative interest.

The petitioner had approached the High Court seeking relief in connection with a compensation award passed by the Secunderabad bench of the tribunal. In its award dated March 13, the tribunal had awarded the petitioner compensation of `8 lakh, along with interest at 9 per cent per annum from the date of the accident until the date of deposit.

Under condition (i) of paragraph 27 of the award, the tribunal directed that `80,000, along with the accrued interest, be released to the petitioner through the electronic clearing system (ECS). The remaining `7.2 lakh was ordered to be placed in 72 fixed deposits of `10,000 each, for periods ranging from one month to 72 months, with cumulative interest.

Petitioner’s counsel argued that the condition requiring the compensation to be split into 72 separate deposits was unreasonable and sought permission for the petitioner to approach the tribunal for release of a lump-sum amount, particularly for her daughter’s education.

Appearing for the respondents, deputy solicitor general of India N. Bhujanga Rao contended that the writ petition was not maintainable. He submitted that if the petitioner required immediate funds for her daughter’s education or any other purpose, she could submit an appropriate application before the tribunal, which could consider it in accordance with law.