Judgement

BHARGAVA, J. :- Belsun Sugar Co. Ltd. Riga (hereinafter referred to as the company-) was incorporated in the year 1932. Soon after the incorporation of the Company, the Company established a fairly large sugar mill near railway station Riga. This station was on the railway line of the Bengal and North Western Railway which at that time, was owned by a limited Company known as the Bengal and North Western Railway Limited. At Riga railway station, the Railway had two main lines running, one along the passenger platform, and another forming a loop against it running parallel to the first line with points on both sides of the platform for taking the railway trains to line 2 when arriving from either direction at Riga railway station. For the sake of convenience, the line along the passenger platform will be referred to as line 1, and the other main line forming the loop as line 2. In addition, there was a good platform and a line was run connecting line l to the line along the goods platform from both directions. That line is to be referred to hereinafter as line S. Since the sugar factory of the Company was established close to Riga Station, considerable goods traffic started being received for the Company and, at the sane time, goods traffic was also booked by the company for outward transmission from this station. During the crushing season, a large number of wagons loaded with sugarcane used to be received and, under the existing constructions of the Railway, delivery of the sugarcane had to be taken from the goods wagons on line 5 at the goods platform. Since the traffic was considerable, it became inconvenient and, consequently, an arrangement was entered into between the Railway and the Company for construction of two sidings described as assisted sidings. In pursuance of this arrangement two further lines (hereinafter referred to lines 3 and 4) were laid between lines 2 and 5 running parallel to these lines. Trains from line 1 could be taken to lines 3 and 4 from both directions in the same manner as they could be taken to line 5. At the time of construction of these assisted sidings represented by lines 3 and 4, an agreement was entered into between the Railway and the Company on 21st November, 1933. Under that agreement, part of the expenditure on the construction of these assisted sidings was met by the Company, while part of the expenditure was incurred by the Railway. It was agreed in that agreement that the Company will pay, in advance, in two equal half-yearly instalments on the first day of April and the first day of October respectively in each half-year, fixed contribution of Rs. 709/8/- per-half-year to the Railway for the use of the railway portion of the siding. The agreement proceeded to lay down that the payment of this contribution by the Company was to be taken in lieu of paying separately for interest on, and cost of maintenance of, the permanent-way, points and crossings and interlocking connected therewith and for freight on the traffic over the siding. It was further agreed that, in the event of the above contribution not being sufficient to meet the cost of the working of the siding, the Railway was entitled, on giving six months notice of its intention to do so, to modify the above contribution and charge the Company such higher amount as it may consider necessary to meet the increased cost of working. Further railway lines were also laid from Riga railway station up to the factory of the company. A line ran from the junction of lines 3 & 4 on the western side of the station in a semi-circular loop and then entered the factory of the Company where the line was connected to four different lines. This line, running from the junction up to a point where there was further bifurcation of lines, will be referred to as line 6. At the end of line 6, this line was connected to two lines, one situated to the south, and the other to the north. There was also a loop formed by connecting the northern li