SC Grants 9% Interest on Union Compensation

Authority: Supreme Court of India

Order Date: 06 August 2026

Parties: Union of India (appellant) vs Sadhan Dalui (respondent).
Accident: Respondent’s father died on 17 June 2001 after falling from a running train.
Claim: Claim Application No. A/699/2002 filed seeking Rs 4,00,000 compensation; dismissed by Railway Claims Tribunal, Kolkata on 06 Oct 2010.
High Court: Appeal FMA No.531/2012 before Calcutta High Court resulted in compensation of Rs 8,00,000 plus interest at 6% per annum from claim filing date; order digitally signed by SAPNA BISHT on 11 Aug 2026.
Subsequent payment: Order dated 06 Jan 2026 directed payment of Rs 8,00,000 by the Union to the respondent.
Respondent’s further claim: Cites Supreme Court order dated 04 Nov 2025 in C.A. No.13872 of 2025 (Shrikumar Gupta & Anr. v. Union of India) where interest of 9% per annum was awarded from date of award.
Legal argument: Additional Solicitor General states that policy in 2001 provided Rs 4,00,000 compensation, revised to Rs 8,00,000 in 2017.

Court notes that Rs 4,00,000 should have been paid soon after the 2001 accident but was not.
Considering the earlier payment of Rs 8,00,000 on 06 Jan 2026, the Court deems it appropriate to award interest at 9% per annum on the original Rs 4,00,000 from the accident date (17 June 2001) until realization.
The interest amount is to be computed and the difference paid to the respondent within four weeks from the order date.

The appeals are disposed of in the terms of the order.
Any pending applications, if any, are also disposed of.
Interest at 9% per annum on Rs 4,00,000 from 17 June 2001 to payment date to be paid within four weeks.

Topics: Compensation, Railway Accident, Judicial Interest Award