JUDGMENT

Lahoti, J.-The two appeals which are being disposed of by this common judgment have a chequered history of litigation. The West Coast Paper Mills Limited, Dandeli and Dandeli Ferro Alloys Limited, Dandeli, the two plaintiffs arrayed as respondents in the two appeals (and which would include their predecessors) have their mills situated at Dandeli in the State of Karnataka. They were required to transport their goods between Alnavar and Dandeli by railways. They were being charged at a flat rate from Alnavar to Dandeli irrespective of the commodity carried and they were not given the benefit of telescopic system of rates which was allowed by the Railways to others and in respect of other goods. The effect of the benefit of telescopic system of rates being denied to the respondents was that they had to pay freight on certain goods at three times compared to what would have been payable in case the benefit of telescopic system of rates was allowed to them.

2. On 24th June, 1963, West Coast Paper Mills Limited filed a complaint (registered as Complaint No. 4/1963) against the Railway Administration complaining of illegality on account of contravention of the provisions of Sectio