Setu Niket v. Union of India and Ors

RAJIV SAHAI ENDLAW, J. NOVEMBER 19, 2015 pk

* THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 1089/2013 & CM No.2073/2013 Pronounced on: 19.11.2015 SETU NIKET ..... Petitioner Through: Ms. Esha Mazumdar, Adv. Versus UNION OF INDIA & ORS ..... Respondents Through: Mr. Sanjay Jain, ASG with Mr.Arun Bhardwaj, CGSC, Mr.Sarfaraz Ahmed, Ms. Aastha Jain, Ms.Neha Garg, Mr.Apurva Varma, Ms.Honey Kumari and Mr. Akash Nagar, Advs. for UOI CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW G. ROHINI, CHIEF JUSTICE: 1. This petition by way of Public Interest Litigation is filed with the following prayers:- "(a) to quash Section 129 of the Railways Act, 1989 as ultra vires Article 14 and 21 of the Constitution; (b) to quash the Railway Accidents and Untoward Incident (Compensation) Rules, 1999 providing for Rs.4,00,000/- as the maximum amount of compensation in case of death or permanent disability; (c) to direct the Respondents to appoint a committee of experts including members of Respondent No.2 and other independent experts to formulate proper policy or standard to determine compensation till the same is formulated by the Parliament." 2. We have heard the learned counsel for both the parties. 3. The Railways Act, 1989 (hereinafter referred to as "the Act") has been enacted repealing the Indian Railways Act, 1890. Chapter XIII of the Act, comprising Sections 123 to 129, deals with the liability of Railway Administration for death and injury to passengers due to accidents. Section 125 provides for making an application for compensation to the Claims Tribunal established under Section 3 of the Railway Claims Tribunal Act, 1987 (for short "the RCT Act") for compensation under Section 124A of the Act. Section 124 provides for the liability of Railway Administration for payment of compensation for the loss occasioned by the death of a passenger or personal injury or damage to the goods as a result of an accident to a train, whereas Section 124 or Section 124A provides for the liability of Railway Administration for payment of compensation for the loss occasioned on account of an untoward incident. Both Section 124 and Section 124A of the Act make it clear that the liability of the Railway Administration shall be to such extent as may be prescribed by the Rules made under the Act. 4. In exercise of the powers conferred under Section 129 of the Act, the Central Government made Rules to carry out the purposes of Chapter XIII of the Act. The said rules, called the Railway Accidents and Untoward Incidents (Compensation) Rules, 1990 (for short "the Compensation Rules") inter alia provide that the maximum compensation that can be claimed is Rs.4 Lacs for death and permanent disability. 5. The vires of Section 129 and the provisions of the Compensation Rules are sought to be questioned by the petitioner on the following grounds: (i) Conferring of power upon the Central Government under Section 129 of the Act to determine the upper limit of compensation by way of Rules amounts to delegation of essential legislative function of the Parliament. (ii) In the absence of any provision in the Act laying down the standards for fixation of the limit upto which the compensation can be granted, the impugned Rules are liable to be declared null and void on the ground of excessive delegation. (iii) The very object of RCT Act, 1987 is defeated by limiting the compensation that can be granted by the Tribunal to Rs.4 Lacs. (iv) The upper limit of Rs.4 Lacs as compensation in case of a rail accident is not in parity with the compensation provided in case of accidental deaths or permanent disability by other means. 6. For proper appreciation of the above contentions, it is necessary to notice the relevant statutory provisions of the Railways Act, 1989: "Section 124. Extent of liability When in the course of working a railway, an accident occurs, being either a collision between trains of which one is a train carrying passengers or the derailment of or other accident to a train or any part of