Telangana HC Modifies Railway Tribunal Order Splitting Rs 7.2 Lakh Into 72 FDs
The Telangana High Court in Hyderabad has modified an order passed by the Secunderabad bench of the Railway Claims Tribunal that directed Rs 7.2 lakh in compensation to be divided into 72 separate fixed deposits. Justice B. Vijaysen Reddy ruled that the tribunal's arrangement was unwarranted and unconscionable, partly allowing a writ petition filed by the claimant.
The matter originated from a compensation award issued by the Secunderabad bench of the tribunal on March 13. The tribunal had granted the petitioner a total compensation of Rs 8 lakh, along with interest at the rate of 9 per cent per annum calculated from the date of the accident until the date the sum was deposited.
However, under condition (i) of paragraph 27 of that award, the tribunal set specific terms for how the funds would be disbursed. It ordered that Rs 80,000, along with the accrued interest, be released directly to the claimant through the electronic clearing system (ECS). The remaining balance of Rs 7.2 lakh was directed to be locked into 72 separate fixed deposits of Rs 10,000 each, with tenures ranging from one month to 72 months, earning cumulative interest.
Challenging the directions, the petitioner approached the High Court. Counsel for the petitioner argued before the court that splitting the compensation into 72 individual deposits imposed an unreasonable burden. The counsel sought permission for the petitioner to approach the tribunal to seek the release of a lump-sum amount, pointing out that funds were urgently required for her daughter’s education.
Deputy Solicitor General of India N. Bhujanga Rao, appearing on behalf of the respondents, opposed the plea and contended that the writ petition was not maintainable. He submitted that if the petitioner required immediate financial assistance for her daughter's education or any other requirement, she could submit an appropriate application before the tribunal, which could consider the request in accordance with the law.
After hearing the submissions, Justice B. Vijaysen Reddy set aside the 72-deposit condition. The High Court directed that the Rs 7.2 lakh sum instead be placed into four fixed deposits of Rs 1.8 lakh each, with cumulative interest, granting relief to the petitioner.
