The Orissa High Court held that compensation under Section 124A of the Railways Act, 1989, must be awarded where statutory requirements are met, even if previously denied by the Railway Claims Tribunal. This decision sets aside the Tribunal’s earlier judgment and serves as binding precedent within its jurisdiction, directly impacting personal injury and accident compensation claims involving Indian Railways.
Summary
| Category | Data |
|---|---|
| Case Name | FAO/225/2021 of SUSHILA HARO Vs UNION OF INDIA |
| CNR | ODHC010676422021 |
| Date of Registration | 05-10-2021 |
| Decision Date | 17-10-2025 |
| Disposal Nature | Disposed Off |
| Judgment Author | Dr. Justice Sanjeeb K Panigrahi |
| Court | Orissa High Court |
| Precedent Value | Binding within the territorial jurisdiction of the Orissa High Court |
| Overrules / Affirms | Sets aside judgment of the Railway Claims Tribunal, Bhubaneswar in Original Application No.296 of 2017 |
| Type of Law | Statutory compensation under Railways Act |
| Questions of Law | Whether compensation under Section 124A of the Railways Act, 1989 must be awarded when statutory requirements are met, regardless of past denial. |
| Ratio Decidendi |
The High Court held that where the statutory requirements for compensation under Section 124A of the Railways Act, 1989 are satisfied, the claimant is entitled to compensation, even if the Railway Claims Tribunal previously denied it. The impugned order was set aside, and the appellants were awarded ₹8,00,000 with 6% interest per annum from the date of the claim application. The Railway Administration is required to deposit the awarded sum before the Tribunal within three months for disbursement after verification. |
| Facts as Summarised by the Court | The appellants had filed a claim under Section 124A of the Railways Act, 1989 before the Railway Claims Tribunal, Bhubaneswar, which was denied by order dated 15.01.2021. The appellants appealed that denial before the High Court. |
Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts and Tribunals within the jurisdiction of the Orissa High Court |
| Persuasive For | Other High Courts and the Supreme Court in similar matters involving Section 124A of the Railways Act, 1989 |
| Overrules | The judgment and order dated 15.01.2021 of the Railway Claims Tribunal, Bhubaneswar in Original Application No.296 of 2017 |
What’s New / What Lawyers Should Note
- The High Court clarified that denial of compensation by the Tribunal may be set aside if the statutory requirements under Section 124A are satisfied.
- Compensation of ₹8,00,000 was specifically awarded with statutory interest, reinforcing the sums and rates applied in such cases.
- The process for disbursal of compensation was specified: deposit by Railways before the Tribunal, followed by verification and disbursement.
Summary of Legal Reasoning
- The High Court examined the impugned judgment of the Railway Claims Tribunal, Bhubaneswar, which had denied compensation to the appellants under Section 124A of the Railways Act, 1989.
- Upon considering the statutory framework, the High Court found that the claimants fulfilled the necessary requirements for statutory compensation.
- It was determined that the Tribunal’s denial was erroneous in light of the statutory mandate under Section 124A.
- The Court consequently set aside the Tribunal’s order and granted compensation, explicitly specifying the amount and interest, and directed the manner for deposit and disbursal of compensation.
- No reference was made to other authorities or precedents in the judgment.
Arguments by the Parties
Petitioner
- Sought statutory compensation under Section 124A of the Railways Act, 1989, challenging the Tribunal’s denial.
Factual Background
The appellants filed an application before the Railway Claims Tribunal, Bhubaneswar, claiming compensation for an incident under Section 124A of the Railways Act, 1989. The Tribunal denied the claim by judgment and order dated 15.01.2021. The appellants subsequently appealed this denial before the Orissa High Court.
Statutory Analysis
The Court interpreted Section 124A of the Railways Act, 1989, which provides for statutory compensation in cases of death or injury arising out of railway accidents or untoward incidents. The Court affirmed the entitlement of the claimants under the said provision, ordering compensation accordingly.
Dissenting / Concurring Opinion Summary
No concurring or dissenting opinions are recorded in the judgment.
Procedural Innovations
- The judgment directed the Railways to deposit the awarded compensation before the Tribunal for verification and disbursal, ensuring a transparent process.
Alert Indicators
- ✔ Precedent Followed – The statutory mandate under Section 124A is affirmed, and the High Court corrects the Tribunal’s departure from statutory requirements.