Union of India and 2 Ors v. M/S S.D. Eastern Bhutan Coals Co Ltd and Anr

JUDGMENT AND ORDER (CAV) Heard Mrs. Uma Chakraborty, learned counsel representing the appellants as well as Ms. M. Sarma, learned counsel appearing for the respondents.

¶2This is an appeal under Section 23 of the Railway Claims Tribunal Act, 1987 against the judgment and order dated 01.09.2016 passed in by the learned Railway Claims Tribunal, Guwahati Bench in O.A.-III 244/2011.

¶3In this appeal, two questions are to be answered. They are –

(1) Whether the Railway authorities can recover punitive charges after delivery of goods? and

(2) Whether the Railways can levy terminal charges for loading of goods in all stations?

¶4The Tribunal answered these questions in negative.

¶5I have considered the submissions made by the learned counsel of both sides.

¶6Section 73 of the Railways Act of 1989 is relevant at this stage. It reads as under: "73. Punitive charge for overloading a wagon.— Where a person loads goods in a wagon beyond its permissible carrying capacity as exhibited Page No.# 3/3 under sub-section (2) or sub-section (3), or notified under sub-section (4), of section 72, a railway administration may, in addition to the freight and other charges, recover from the consignor, the consignee or the endorsee, as the case may be, charges by way of penalty at such rates, as may be prescribed, before the delivery of the goods:" Provided that it shall be lawful for the railway administration to unload the goods loaded beyond the capacity of the wagon, if detected at the forwarding station or at any place before the destination station and to recover the cost of such unloading and any charge for the detention of any wagon on this account."

¶7Therefore, the Railways can lawfully demand punitive charges for overloading, if it is detected at the forwarding station or at any place before destination station.

¶8Here, the question arises that after unloading of the goods at the destination station, whether the Railways can claim punitive charges for overloading?

¶9According to Section 73 of the Railways Act, the Railways cannot charge punitive charges after unloading of the goods at the destination station. Therefore, I am of the considered opinion that the learned Tribunal has correctly held that Railways cannot charge punitive charges after delivery of goods.

¶10Regarding the second question, there is no quarrel with the proposition that there are 50 specific stations having all the infrastructures for loading and unloading of goods and if any of those 50 stations are used, then only the Railways can charge terminal charges. For other stations, Railways cannot levy terminal charges. The Railways has to refund the terminal charges.

¶11I am of the considered opinion that the Railway Claims Tribunal has rightly answered this question in negative.

¶12Under the aforesaid circumstances, I find that there is no merit in this appeal and the appeal stands dismissed accordingly. Send back the LCR.

JUDGE Comparing Assistant

Page No.# 1/3 GAHC010014442017 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : MFA/42/2017 UNION OF INDIA and 2 ORS REPRESENTED BY THE GENERAL MANAGER, N.F. RAILWAY, MALIGAON, GUWAHATI-11 2: UNION OF INDIA REPRESENTED BY THE GENERAL MANAGER SOUTH EASTERN RAILWAY GARDEN REACH KOLKATA-43 3: THE CHIEF GOODS SUPERINTENDENT SOUTH EASTERN RAILWAY OCL SIDING P.O. RAJGANGPUR DIST. SUNDERGARH PIN 770017 ORISS VERSUS M/S S.D. EASTERN BHUTAN COALS CO LTD and ANR SOHIL NIWAS, 3RD FLOOR, CHATRIBARI, GUWHATI-1, NOW SHIEFTED AT RAM KUMAR PLAZA MARKET, 1ST FLOOR CHATRIBARI ROAD, GUWAHATI-1, ASSAM. 2:SR. MANAGER DISPATCH C REPRESENTING M/S OCL INDIA LTD. OCL SIDING P.O. RAJGANGPUR DIST. SUNDERGARH PIN 770017 ORISS Advocate for the Petitioner : SC, NF RLY Advocate for the Respondent : MS.M SHARMA Page No.# 2/3 PRESENT THE HON'BLE MR. JUSTICE PARTHIVJYOTI SAIKIA For the Appellants : Mrs. U. Chakraborty, Advocate. For the Respondents : Ms. M. Sarma, Advocate. Date of Hearing : 08.02.2024. Date of Judgment : 09.04.2024.