Judgment

DAS GUPTA, J. : When total charges payable in respect of goods traffic carried by a Railway are increased by the Railway Administration on the basis of terminals fixed by the Central Government in pursuance of S. 32 of the Indian Railways Act, has the Railway Rates Tribunal jurisdiction to investigate the reasonableness of the charge as thus increased? That is the question raised in this appeal. The first respondent, the Upper Doab Sugar Mills Ltd., manufactures sugar in its Mills situated at Shamli. The sugarcane needed as its raw material has to be brought by the Company from different places in the neighbourhood. It is in this connection that the appellant-Railway Company s services are required. The Railway Company carries the sugarcane in trucks from several stations on its line, to Shamli. As the Mills premises are situated a short distance away from the station platform the Mills had at the very time when it started functioning, a siding agreement with the Rly., Company so that the trucks carrying the sugarcane are ultimately brought into the Mills siding from where the unloading takes place. The nearest point of the Mills siding from the station platform at Shamli is about 100 to 150 ft. away. The Rly. locomotives bring the sugarcane trucks to this point-pt. A in the Plan-after which the Mills makes its own arrangement for taking them inside the sidings. After several increase from time to time which it is not necessary to mention, the charges payable in respect of sugarcane carried in the Railway Company s trucks and brought by the Railway Company s locomotives up to the point A stood on September 30, 1953, at the following figures :-

From Ailum 3 8 -

Kandhla 3 8 -

Khandraoli 3 8 -

Hind 3 8 -

Thanabhawan 3 8 -

Nanautta 4 4 -

Sona Arjunpur 4 4 -

In each case a surcharge of annas 2 per rupee was added. 2. Before this, however, on February 20, 1950, the Central Government had made an order under S. 32 of the Indian Railways Act, the relevant portion of which is in these words :-

"In pursuance of section 32 of the Indian Railways Act, 1890 (IX of 1890) the Central Government is pleased to fix the following rates of terminals, transhipment, short distance, percentage on value and percentage on excess value charges, namely :-

1. TERMINAL CHARGES.

(a) Good Traffic

(i) General Merchandise

Eight pies per maund at each end where the railway is required to do loading and unloading.

Six pies per maund at each end, where the owners of the goods are required to do loading and unloading......".

3. In spite of this however the Railway Company did not levy any terminal charges in accordance with this rate up to September, 1953 and continued to charge at the rate mentioned above.

4. On August 1, 1953, the Railway Company issued a Local Rate Advice the relevant portion of which was in these terms :-

"With effect from 1-10-1953 the following station to station rates will be introduced and will remain in force till further advice :-

Commodity From To Rate plus terminal

Sugarcane Ailum Shamli Rs. 2.6 Rs. 9.6

Khandla do 2.6 do

Khandraoli do 1.12 do

Hind do 1.12 do

Thanabhawan do 3.2 do

Harar Siding do 3.2 do

Nanautta do 3.15 do

Sona Arjunpur do 4.11 do "

5. The consequence of this was that with effect from October 1953 the total charges payable by the Mills rose considerably. From Rs. 3.8 formerly payable in respect of sugarcane carried from Ailum, Khandla, Khandraoli, Hind, Thanabhawan, the rate now payable became Rs. 11.12, Rs. 11.12, Rs. 11.2, Rs. 11.2 and Rs. 12.8 respectively while for sugarcane carried from Nanautta and Sona Arjunpur, the amount now payable was Rs. 13.5 and Rs. 14.1 in place of Rs. 4.4 and Rs. 4.4 payable prior to October 1, 1953. It was for relief against this increase that the Mills made a complaint under S. 41 (1) (i) of the Indian Railways Act to the Railway Rates Tribunal. Relief in respect of certain other matters like rates on molasses, increase in siding charges, rates on coal, gunnies, limestone, firewood etc., an