Archive · 6 Sep 2026
High Court Rejects 72-FD Compensation Plan, Orders Four Deposits
A railway tribunal awarded a person Rs 8 lakh after an accident.
It said Rs 80,000 could be paid directly through an electronic transfer.
The remaining Rs 7.2 lakh was divided into 72 small fixed deposits.
The deposits would mature one each month for 72 months.
The person asked the High Court to change this arrangement.
She said she especially needed money for her daughter’s education.
The High Court said dividing the money into so many deposits was unreasonable.
It ordered the money to be placed in four deposits of Rs 1.8 lakh each instead.
The Telangana High Court modified a Railway Claims Tribunal order involving Rs 7.2 lakh in compensation.
Justice B. Vijaysen Reddy called splitting the amount into 72 fixed deposits “unconscionable” and unwarranted.
The court ordered four fixed deposits of Rs 1.8 lakh each, with cumulative interest.
The tribunal had awarded Rs 8 lakh plus 9% annual interest from the accident date until deposit.
The petitioner sought access to a lump sum, particularly for her daughter’s education, while respondents said she could apply to the tribunal for funds.
- Who
- The claimant, the Railway Claims Tribunal, and the Telangana High Court, with Justice B. Vijaysen Reddy delivering the order.
- What
- The High Court modified an order requiring Rs 7.2 lakh in compensation to be divided into 72 fixed deposits, replacing them with four deposits.
- When
- The tribunal’s compensation award was dated March 13; the date of the High Court’s order was not stated.
- Where
- The case concerned the Secunderabad bench of the Railway Claims Tribunal and was heard by the Telangana High Court in Hyderabad.
- Why
- The High Court found the 72-deposit arrangement unconscionable and unwarranted after the claimant sought access to funds, including for her daughter’s education.
Claimant’s position
Respondents’ position
Access to compensation
Claimant’s position
The requirement to split Rs 7.2 lakh into 72 separate deposits was unreasonable, and the claimant sought permission to receive a lump sum, particularly for her daughter’s education.
Respondents’ position
Deputy Solicitor General N. Bhujanga Rao argued that the writ petition was not maintainable and said the claimant could apply to the tribunal for immediate funds, which it could consider according to law.
- Total compensation
- Rs 8 lakh
- Interest rate
- 9% per annum from the accident date until deposit
- Amount released directly
- Rs 80,000 plus accrued interest through the electronic clearing system
- Original deposit arrangement
- Rs 7.2 lakh in 72 fixed deposits of Rs 10,000 each
- Original deposit periods
- One month to 72 months, with cumulative interest
- Revised arrangement
- Four fixed deposits of Rs 1.8 lakh each, with cumulative interest
- High Court judge
- Justice B. Vijaysen Reddy