IN THE HIGH COURT AT CALCUTTA CIVIL APPELLATE JURISDICTION APPELLATE SIDE Present: The Hon’ble Justice Md. Shabbar Rashidi FMA 460 of 2026 Shankara Khatoon Vs. Union of India For the appellant : Mr. Navin Mittal, Adv. For the respondent : Mr. Amaresh Bag, Adv. Mr. Pradip Paul, Adv. Heard on : 21.09.2026 Judgment on : 21.09.2026 Uploaded on : 22.09.2026 MD. SHABBAR RASHIDI, J:- 1. Learned advocates for the parties are present. 2. Heard learned advocates. 3. This appeal is directed against the Judgment and Order dated January 16, 2026 passed by the learned Railway Claims Tribunal, Kolkata Bench in Claim Application No. OA(IIu)/KOL/0031/2025. 4. By the impugned judgment and order, learned Tribunal directed the respondent Railway Authority to deposit the amount 2 awarded with the Registrar RCT within a period of 60 days from the date of communication of the award, failing which, a simple interest at the rate of 6% per annum will be payable, from the date of default till the actual date of deposit of the amount before the RCT. 5. By the impugned judgment, the learned Tribunal granted liberty to the claimant to withdraw 5% of the amount of compensation awarded to her. Balance amount was directed to be deposited with 76 fixed deposits of Rs. 10,000/- each invested for a period of 1 to 76 months in the ascending order. The bank was directed to release the amount with accumulated interest upon maturity of this deposit to the credit of bank account of the applicant i.e. Shankara Khatoon. 6. Learned Advocate for the appellant submits that the Learned Tribunal without applying mind has directed the compensation to be kept in fixed deposit. To such proposition, learned Advocate relies upon an unreported decision of the Hon’ble Madhya Pradesh High Court in Misc. Petition No.1753 of 2022. 7. The Hon’ble Court in the said decision was pleased to observe as follows :- “6. Admittedly that the Tribunal has no such jurisdiction in case where the claimants are major, who are none other than the parents of the deceased. This condition no.17 is incorporated by the Tribunal is unwarranted and uncalled 3 for in the eye of law. The claimants who are the parents of the deceased and nearer to the age of 50 years have every right to utilize the amount in any manner, as they like. 7. The learned counsel for the respondent/Railway has placed reliance in para 23 of General Manager Kerala State Road Transport Corporation Trivandrum vs. Susamma Thomas(Mrs.) and others, (1994)2 SCC 176, which reads as follows :- 23. In a case of compensation of death it is appropriate that the Tribunals do keep in mind the principles enunciated by this court in Union Carbide Corpn. V. Union of India [(1991) 4SCC 584] in the matter of appropriate investments to safeguard the feed from being frittered away by the beneficiaries owing to ignorance, illiteracy and susceptibility to exploitation. In that case approving the judgement of the Gujarat High Court in Muljibhai Ajrambhai Harijan v. United India Insurance Co. Ltd.[(1982) 1 Guj LR 765] this court offered the following guidelines: (Guj LR pp.759-60) “(i) the Claims Tribunal should, in the case of minors, invariably order the amount of compensation awarded to the minor be invested in long terms fixed deposits at least till the date of minor attaining majority. The expenses incurred by the guardian or next friend may, however, be allowed to be withdrawn; (ii) in the case of illiterate claimants also the claims Tribunal should follow the procedure set out in (i) above, but if lump sum payment is required for effecting purchases of any movable or immovable property such as, agricultural implements, rickshaw, etc., to earn a living, the Tribunal may consider such a request after making sure 4 that the amount is actually spent for the purpose and the demand is not a ruse to withdraw money; (iii) In the case of semi-literate persons the Tribunal should ordinarily resort to the procedure set out at (i) above unless it is satisfied, for reasons to be stated in writing, that the whole or part of the amount is required for expending the existing business or for purchasing some property as mentioned in (ii) above for earning his livelihood, in which case the Tribunal will ensure that the amount is invested for the purpose for which it is demanded and paid (iv) In the case of literate persons also the Tribunal may resort to the procedure indicated in (i) above, subject to the relaxation set out in (i) and (iii) above, if having regard to the age, fiscal background and strata of society to which the claimant belongs and such other considerations, the Tribunal in the larger interest of the claimant and with a view to ensuring the safety of the compensation awarded to him thinks it necessary to do order ; (v) In the case of widow the Claims Tribunal should invariably follow the procedure set out in (i) above; (vi) In personal injury cases if further treatment is necessary in Claims Tribunal on being satisfied about the same, which shall be recorded in writing, permit withdrawal of such amount as is necessary for incurring the expenses for such treatment ; (vii) in all cases in which investment in long terms fixed deposits is made it should be on condition that the Bank will not permit any loan or advance on the fixed deposit and interest on the amount invested is paid monthly directly to the claimant or his guardian, as the case may be; 5 (viii) In all cases Tribunal should grant to the claimants liberty to apply for withdrawal in case of an emergency. To meet with such a contingency, if the amount awarded is substantial, the Claims Tribunal may invest it in more than one Fixed Deposit so that if need be one such F.D.R can be liquidated.” These guidelines should be borne in mind by the Tribunals in the cases of compensation in accident cases. 8. The Hon’ble Court further observed as follows :- “9. A judgement of Hon’ble Apex Court in the case of H.S. Ahammed Hussain and Another vs. Irfan Ahammed, (2002) 6 SCC 52, relevant para -8 reads as follows : 8. ............. In the facts and circumstances of the present case, we are of the view that the amount of compensation awarded in favour of the mothers should not be kept in fixed deposit in a nationalised bank..... 10. In the light of above said judgements, no restriction can be imposed on the rights of an adult to claim compensation amount deposited in their names by the Railways.” 9. By the impugned judgment and order, the Railway Claims Tribunal has directed the following :- “1) That the claim application is hereby allowed for Rs.8,00,000/- (Rupees eight lacs only) on contest in favour of the applicant without any cost and interest. ii) The respondent railway is directed to deposit the amount awarded, with the Registrar of this RCT within a period of 60 days from the date of communication of this Order, failing which, a simple interest @ 6% p.a. will be 6 payable, from the date of default till the actual date of deposit of the amount before the RCT. iii) The applicant, Shankara Khatoon is permitted to withdraw 5% of the amount of compensation awarded to her. After withdrawal of 5% i.e. Rs.40,000/-, balance amount of Rs.7,60,000/- shall be split into 76 fixed deposits of Rs.10,000/- and invested for a period of 1 to 76 months in the ascending order. The bank shall release the amount with accumulated interest upon maturity of this deposit to the credit of Bank A/c of the applicant, Shankara Khatoon. iv) Directions contained in (iii) are in conformity with the orders dated 21.04.2018, 24.05.2024 and 06.11.2024 passed by Hon'ble High Court of Delhi in "FAO 22/15 and CMA No.4501/15 in Geeta Devi - Vs - Union of India". v) If the claimant is entitled to exemption of deduction of TDS, she shall submit Form 15G or Form 15H (for senior citizen) to the Presenting Officer of the respondent railway (as applicable under sub-section (2) of Section 19 of the Railway Claims Tribunal Act, 1987), so that no TDS is deducted. vi) That the claimant is directed to open individual savings bank account in a nationalized bank near the place of her permanent residence. The bank is directed not to permit any joint name to be added in the savings bank account or fixed deposit account of the claimant i.e the savings bank account of the claimant shall be an individual savings bank account and not a joint account. 7 vii) The concerned bank is directed not to issue any cheque book and/or debit card to the claimant. If the same has already been issued, the bank is directed to cancel the same before the disbursement of the award amount and the bank shall freeze the account of the claimant so that no debit card is issued in respect of the account of the claimant from any other branch of the bank. The bank should make an endorsement on the passbook of the claimant to the effect that no cheque book and/or debit card shall not be issued to the claimant without the permission of the RCT. The concerned bank is directed that digital transaction of compensation received under annuity scheme shall be strictly prohibited. The concerned Bank Manager is also directed not to transfer any FD account to any other Bank/Branch. The concerned bank of the claimant is directed to permit the claimant to withdraw money from her savings bank account by means of a withdrawal form only. The claimant is directed to produce the copy of the order passed by the RCT before the concerned bank whereupon the bank be directed to make an endorsement on the passbook. viii) The original fixed deposit shall be retained by the bank in safe custody. However, the statement containing FDR number, FDR amount, date of maturity and maturity amount shall be furnished by the bank to the claimant. The monthly interest to be credited by ECS in the savings bank account of the claimant near the place of her residence. The maturity amount of the FDR will be credited by ECS in the savings bank account of the claimant near the place of her residence. The bank shall not grant any loan, advance, 8 withdrawal or premature discharge on the fixed deposit without permission of the RCT. ix) That the respondent is directed to deposit the amount awarded with the Registry of this RCT within a period of 60 days from the date of communication of the award. x) Directions contained above are in conformity with the Ministry of Railways (Railway Board) Notification dated 3rd June, 2024 under GSR 347 E which has come into effect on 1st day of January, 2024. xi) RCT registry shall release the decretal amount to the claimant as per the directions contained in para (iii) to (viii) above within 60 days of the full verification of the claimant and submission of all required documents or the receipt of the decretal amount from the Respondent Railway whichever is later.” 10. It transpires from the impugned judgment and order that the learned Claims Tribunal passed the order in conformity with the Ministry of Railways (Railway Board) notification dated June 3, 2024 under G.S.R. 3437(E), wherein the Hon’ble Allahabad High Court directed the awarded amount to be paid to the claimant where the claimant was major and not hit by rule 5.2 of the notification. Such circular issued by the Ministry of Railways of the Allahabad High Court was set aside by an order passed by the 9 Hon'ble High Court of judicature at Allahabad in Writ (C) 27617 of 2026. 11. In such circumstances, the impugned award passed by the Claims Tribunal dated 16.01.2026 so far it directs the claimant, who is a major, aged more than 50 years, to withdraw 5% of the amount of compensation and the directions of the Claims Tribunal with regard to keeping the balance amount of Rs. 7,60,000/- in 76 split-up deposits of Rs. 10,000/- to be invested in a fixed deposit are hereby set aside. 12. Upon hearing the Learned Advocate for both the parties and upon considering the decision relied upon this Court is of the view that no ground is cited by the learned Tribunal and no provision in the statute is quoted as to why the compensation awarded to the claimant who is an adult person will not be handed over to her by either Bank draft or account payee cheque. 13. As the appellant/claimant is not minor the direction ought to have been given to pay the appellants/claimants directly. Thus, the direction of the learned Tribunal in depositing the compensation amount in fixed deposit scheme of a Bank cannot be sustained and the same is set aside. 14. In the facts and circumstances, the award of compensation which was granted by the Learned Tribunal remains un-altered. 10 The respondent Union of India Railway Authority is directed to deposit the compensation amount along with interest as directed by the Learned Tribunal before the Registrar of RCT. Such deposit shall be made within six weeks from the date of communication of this order. Upon deposit being made the appellant/claimant will be entitled to withdraw the same upon compliance of all necessary formalities. 15. The Registrar of Railway Claims Tribunal is directed to disburse the entire amount to the claimant within a period for four weeks from this date. 16. With the aforesaid directions, the appeal being FMA 460 of 2026 is disposed of. 17. Urgent photostat certified copy of this judgment, if applied for, be supplied to the parties on priority basis upon compliance of all formalities. (Md. Shabbar Rashidi, J.) tbsr/49