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2000 Supreme(SC) 253

2000(1) Supreme 317
SUPREME COURT OF INDIA
(From Andhra Pradesh High Court)
S. Saghir Ahmad & D.P. Wadhwa, JJ.
Union of India -Appellant
versus
E.I.D. Parry (India) Ltd. -Respondent
Civil Appeal No. 1763 of 1989
Decided on 1-2-2000
Counsel for the Parties :
For the Appellant : V.C. Mahajan, K.N. Shukla, Sr. Advocates, A.D.N. Rao, Mrs. Anil Katiyar, Ms. Kitty Kumaramangalam, C.V. Subba Rao and Ms. A. Subhashini, Advocates.
For the Respondent : B. Kanta Rao, Advocate.

IMPORTANT POINTS
1. A question, which did not form part of the pleadings or in respect of which the parties were not at variance and which was not the subject matter of any issue, could not be decided by the Court.
2. When wagons are shunted to private siding, Railway could demurrage only in respect of wagons which are not unloaded within free time and not with reference to entire block of wagons shunted.

Headnote:(i) Code of Civil Procedure, 1908 -Second 100-Second appeal-Adjudication of issue not pleaded-Legality of-Suit for recovery of excess demurrage-No pleading in suit that Rule of Railway Goods Tariff Rules was ultra vires Railways Act-High Court in Second Appeal on its own considered validity of Rule in question and struck down Rule as ultra vires-High Courts judgment unsustainable-Issue not forming part of pleadings could not have been decided by High Court-Judgment of High Court set aside. (Paras 4 & 7)

       (ii) Goods Tariff Rules of Southern Railway-Part 1-A-Demurrage-Failure to unload wagons within free time-Ten wagons shunted to respondent s siding-Five wagons unloaded within free time available-Railway levied demurrage for all 10 wagons-Held : In respect of private siding, demurrage could not be claimed in respect of entire block of ten wagons-Demurrage could be charged only in respect of wagons which had not been unloaded within free time. (Paras 5 and 6)

       

JUDGMENT

S. Saghir Ahmad, J.-Respondent s suit for recovery of a sum of Rs. 2,333.61p. charged as demurrage by the Railway Administration on account of failure to unload wagons within the free time, was decreed by the trial Court, namely, the District Munsif at Guntur, for Rs. 966/- with interest at the rate of 6 per cent per annum. The decree was set aside by the first Addl. District Judge, Guntur, on the ground that all the ten box wagons through which bulk - rock phosphate fertiliser was transported from Vishakhapatnam Port to Krishna Canal Railway Station had reached destination and thereafter shunted to the respondent s siding on May 5, 1971 at 3.30 A.M. and during the course of unloading, which commenced at 6.30 A.M., only five wagons were unloaded by 9.00 A.M. within the free time available to the respondent, and since all the ten box wagons were not unloaded, the Railways were entitled to levy demurrage for all the 10 wagons under the Rules. The lower appellate Court had placed reliance upon the Goods Tariff Rules of the Southern Railway, Part 1-A, which provides as under :

"The entire group of box wagon placed for unloading will be treated as one unit for the purpose of levy of demurrage charges, i.e., even if one wagon out of the group of two or more is detained for unloading beyond the prescribed free time, the demurrage will be levied on all the box wagons in the group."

2. The above Rule was struck down by the High Court in the Second Appeal as ultra vires and the decree passed by the trial Court was maintained.

3. In the present appeal, which is directed against the judgment of the High Court, it is contended on behalf of the learned counsel for the appellant that there was no occasion for the High Court to have looked into the validity of the Goods Tariff Rule quoted above or to hold that Rule to be ultra vires the Railways Act, 1890. This contention appears to be absolutely correct.

4. The suit was filed for the recovery of excess demurrage allegedly charged by the appellant from the respondent. The claim depended upon Goods Tariff Rules, specially the Rule quoted above, which authorises the respondent to claim damages in respect of the entire block of wagons supplied to a party who does not empty those wagons at the siding within the time permitted for that purpose. There was no pleading that the Rule upon which the reliance was placed by the respondent was ultra vires the Railways Act, 1890. In the absence of the pleading to that effect, the trial Court did not frame any issue on that question. The High Court of its own proceeded to consider the validity of the Rule and ultimately held that it was not in consonance with the relevant provisions of the Railways Act, 1890 and consequently held that it was ultra vires. This view is contrary to the settled law that a question, which did not form part of the pleadings or in respect of which the parties were not at variance and which was not the subject matter of any issue, could not be decided by the Court. The scope of the suit was limited. The pleadings comprising of the averments set out in the plaint and the defence put up by the present appellant in their written statement did not relate to the validity of the Rule struck down by the High Court. The High Court, therefore, travelled beyond the pleadings in declaring the Rule to be ultra vires. The judgment of the High Court, therefore, on this question cannot be sustained.

5. So far as the question relating to the demand of demurrage for the entire block of ten wagons is concerned, the trial Court recorded the following finding.

"The question to be determined is whether the defendant has a right to collect demurrage for all the 10 wagons or only for the five wagons remained to be unloaded after free time. The learned counsel for the debt placed before one goods Tariff Part I-A published by southern railway in 1965. Rule 28 of Chapter thereof provides the rates of charges to be collected as wharfage and demurrage. Item




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