Pankaj Jakharia fell off a suburban local train on January 14, 1998 near Bhandup in north-east Mumbai . He was taken to the hospital, but he succumbed to his injuries four days later. His parents filed a suit before Railway Accident Claims Tribunal for compensation. Central Railway opposed the claim, saying it was not a purely accidental death that merits a compensation.

Pankaj’s negligence contributed to the mishap, said the CR counsel. However, the Tribunal rejected the argument, and awarded compensation of Rs 4 lakh to Jakharias in its order on November 20, 1998. It also ordered Railways to pay an interest at the rate of 12 per cent from the date of accident till the whole amount was paid. CR challenged the order before the High Court, saying that the compensation was exorbitant and Pankaj was not a bonafide passenger as no evidence to that effect was produced.