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Issues: Whether compensation payable for a railway accident under Section 124A of the Railways Act, 1989 is to be computed on the basis of the rules in force on the date of the accident or on the date when the Claims Tribunal determines and orders payment.
Analysis: The liability to pay compensation for an untoward incident arises under Section 124A, while the extent of compensation is fixed by the rules made under Section 129. The expression "as may be prescribed" was read as referring to the prescription in force from time to time, because the statute did not itself fix the amount and delegated that function to the Central Government. Section 126, dealing with interim relief, did not control the final quantification of compensation. The scheme of Chapter XIII was treated as a speedy and beneficial remedy intended to provide fair and reasonable compensation, and the amount had to reflect the prescribed rates at the time the Tribunal orders payment. The contrary view was held to produce arbitrary and absurd discrimination between similarly injured claimants merely because of the date of the accident.
Conclusion: The compensation had to be determined according to the rules in force on the date of the Claims Tribunal's order, not the date of the accident, and the appellant was entitled to restoration of the Tribunal's award.
Ratio Decidendi: Where a statute creates a right to compensation but leaves the quantum to be prescribed by delegated legislation from time to time, the amount payable is to be assessed with reference to the prescription in force when the adjudicating authority orders payment, unless the statute clearly provides otherwise.