{"id":154534,"date":"2010-01-05T00:00:00","date_gmt":"2010-01-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/smt-shamshunisha-vs-union-of-india-on-5-january-2010"},"modified":"2015-08-22T19:16:31","modified_gmt":"2015-08-22T13:46:31","slug":"smt-shamshunisha-vs-union-of-india-on-5-january-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/smt-shamshunisha-vs-union-of-india-on-5-january-2010","title":{"rendered":"Smt. Shamshunisha vs Union Of India on 5 January, 2010"},"content":{"rendered":"
Madhya Pradesh High Court<\/div>\n
Smt. Shamshunisha vs Union Of India on 5 January, 2010<\/div>\n
                 Misc. Appeal No. 4085 Of 2009\n\n5.1.2010\n\n      Shri Ashok Shrivastava, learned counsel for the\nappellants.\n      Shri    Rajneesh   Gupta,   learned   counsel   for   the\nrespondent on advance notice.<\/pre>\n
      With the consent of learned counsel for the parties
\nheard finally.\n<\/p>\n
      Question which crops up for consideration in the
\npresent appeal under Section 23 of the Railway Claims
\nTribunal Act, 1987 against an order dated 16.9.2009
\npassed by Railway Claims Tribunal, Bench at Bhopal in
\nO.A. No. IIu\/24\/08 as to whether the Tribunal is justified
\nin awarding interest @ 6 % on default within a period of 60
\ndays\/two months is no more res integra.\n<\/p>\n
      In Thazhathe Purayil Sarabi & ors v. Union of India
\nand another (AIR 2009 SC 3098), it is held by their
\nLordships:\n<\/p>\n
    “16. It is, therefore, clear that the Court, while
\n    making a decree for payment of money is entitled
\n    to grant interest at the current rate of interest or
\n    contractual rate as it deems reasonable to be paid
\n    on the principal sum adjudged to be payable and\/
\n    or awarded, from the date of claim or from the
\n    date of the order or decree for recovery of the
\n    outstanding dues. There is also hardly any room
\n    for doubt that interest may be claimed on any
\n    amount decreed or awarded for the period during
\n    which the money was due and yet remained
\n    unpaid to the claimants.\n<\/p><\/blockquote>\n
                          2<\/span><\/p>\n
17-8. The Courts are consistent in their view that
\nnormally when a money decree is passed, it is
\nmost essential that interest be granted for the
\nperiod during which the money was due, but
\ncould not be utilized by the person in whose
\nfavour an order of recovery of money was passed.
\nAs has been frequently explained by this Court
\nand various High Courts, interest is essentially a
\ncompensation payable on account of denial of the
\nright to utilize the money due, which has been, in
\nfact, utilized by the person withholding the same.
\nAccordingly, payment of interest follows as a
\nmatter of course when a money decree is passed.
\nThe only question to be decided is since when is
\nsuch interest payable on such a decree. Though
\nthere are two divergent views, one indicating that
\ninterest is payable from the date when claim for
\nthe principal sum is made, namely, the date of
\ninstitution of the proceedings in the recovery of
\nthe amount, the other view is that such interest is
\npayable only when a determination is made and
\norder is passed for recovery of the dues. However,
\nthe more consistent view has been the former and
\nin rare cases interest has been awarded for
\nperiods even prior to the institution of proceedings
\nfor recovery of the dues, where the same is
\nprovided for by the terms of the agreement entered
\ninto between the parties or where the same is
\npermissible by statute.\n<\/p>\n
19. Accordingly, we are unable to sustain the
\norder of the Railway Claims Tribunal directing
\npayment of interest on default of the payment of
\nthe principal sum within a period of 45 days. As
\nwe have indicated hereinbefore, when there is no
\nspecific provision for grant of interest on any
\namount due, the Court and even Tribunals have
\nbeen held to be entitled to award interest in their
\ndiscretion, under the provisions of Section 3 of the
\nInterest Act and Section 34 of the Civil Procedure
\nCode.\n<\/p>\n
                                3<\/span><\/p>\n
     Division Bench of this Court in Siddha Muni Shukla
\nand others v. Union of India and another : M.A. No.
\n2868\/2006 decided on 1.11.2006 has held:\n<\/p>\n
   “On the scrutiny of the award, it is clear as day that
\n   the interest has been granted on a condition that if the
\n   respondent would pay compensation within 60 days,
\n   no interest would be leviable. It is trite law that this
\n   would not amount to grant of interest. Mr. Dubey has
\n   submitted that the interest may be granted from the
\n   date of presentation of the application before the
\n   tribunal i.e. from 16.9.2002 To buttress his aforesaid
\n   submission, he has placed reliance on the decision
\n   rendered in the case of Union of India Vs. Smt.
\n   Lamipati and another AIR 1995 MP 90.\n<\/p>\n
   Recently, this Court in the case of Union of India Vs.
\n   Rami Bai in M.A. No. 1220 of 2006 after referring to
\n   various decisions rendered in the cases of Ambica
\n   Quarry Works Vs. State of Gujrat AIR 1987 SC 1073,
\n   Ramesh Chandra Daga Vs. Rameshwari Bai, (2005) 4
\n   SCC 772, Zee Telefilms Ltd and another Vs. Union of
\n   India and others (2005) 4 SCC 649, P.S. Sathappan
\n   (dead) by Lrs. Vs. Andhra Bank Ltd. and others (2004)
\n   11 SCC, and Executive Engineer Dhenkenal Minor
\n   Irrigation Division Orissa Vs. N.C. Bhudarai (Dead) by
\n   LRs. etc. AIR 2001 SC 626 has expressed the opinion
\n   as under:-\n<\/p>\n
      “Only to show that in the absence of any
\n      prohibition interest can be awarded as an
\n      accessory or incidental to the sum awarded as
\n      due and payable. On the scrutiny of the Act
\n      and the Rules, it is clearly evincible that is no
\n      prohibition. The Division Bench of this Court
\n      in the case of Smt. Laxmipati (supra) has dealt
\n      with the provisions of the Act. Rules and the
\n      conception of grant of interest. The Division
\n      Bench had addressed itself with regard to the
\n      claims for unliquidated damages. The Division
\n      Bench decision is a binding precedent on us
\n      and we do not find any reason to differ with the
\n      same. In fact, we respectfully concur with the
\n                                 4<\/span><\/p>\n
        said view. We may state here. Mr. Upadhyaya
\n        laboured hard to persuade us that the law laid
\n        down in the case of Laxmipati (supra) requires
\n        reconsideration in view of the law laid down in
\n        the case of Sanjay Sapatrao Gaikwad (supra)
\n        and Rathi Memon (supra). We have already
\n        dealt with the decision rendered in the case of
\n        Rathi Menon (supra) and expressed the opinion
\n        that the Apex Court has not laid down the law
\n        that interest can only be granted from the date
\n        of order passed by the Railway claims
\n        Tribunal. As far as the law laid down in the
\n        case of Sanjay Sampatrao Gaikwad (supra)
\n        with due respect has not persuaded us to
\n        express a different note than that has been
\n        stated in the case of Laxmipati (supra).”\n<\/p>\n
       In view of above the order dated 16.9.2009 of the
\nTribunal is modified to the extent that the appellant shall
\nbe entitled for interest @ 6 % per annum from the date of
\ninstitution of proceedings before Railway Claims Tribunal.\n<\/p>\n
       The appeal is allowed to the extent above. However,
\nno costs.\n<\/p>\n
                                        (SANJAY YADAV)
\n                                            JUDGE<\/p>\n
VT\/-<\/p>\n","protected":false},"excerpt":{"rendered":"
Madhya Pradesh High Court Smt. Shamshunisha vs Union Of India on 5 January, 2010 Misc. Appeal No. 4085 Of 2009 5.1.2010 Shri Ashok Shrivastava, learned counsel for the appellants. Shri Rajneesh Gupta, learned counsel for the respondent on advance notice. With the consent of learned counsel for the parties heard finally. Question which crops up […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,24],"tags":[],"class_list":["post-154534","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madhya-pradesh-high-court"],"yoast_head":"\nSmt. 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