Judgment

GROVER, J.:- This is an appeal by certificate from a judgment of the Allahabad High Court in a suit filed by the plaintiff-respondent for an injunction against the defendant-appellant restraining it from realizing the sum of Rs. 93,981-8-0 on account of the alleged siding charges for the period December 1, 1949 to March 31, 1956 and from stopping the supply of wagons in the railway siding of the plaintiff and further from cancelling the agreement dated July 4, 1933 for the aforementioned reasons.

2. The facts necessary for deciding the appeal may be stated. By means of an agreement dated July 4, 1933 the plaintiff entered into an agreement with the Secretary of State for Indian Council through the agent of the North Western Railway (now represented by the Union of India) whereby it was agreed that the former shall lay a railway siding from Begamabad Station Yard of that railway for enabling the plaintiff to carry on its business at its premises. Clause 13 of the agreement was follows:

"Freight for all classes of goods will be charged upto and from Begamabad Station. Railway Receipts and invoices shall be issued to and from the station only and in accordance with the rates from time to time published in the Goods Traffic Books of this Railway Administration will make the following charges in each direction from every wagon loaded or empty in or removed from the lines A and B mentioned in clause 15 below :

(1) Per 4 wheeled wagon Re. One.

(2) Per 6 wheeled wagon Re. One and annas eight.

(3) Per 8 wheeled wagon Rs. Two.

Clause 23 of the agreement provided :

"Notwithstanding anything laid down in the foregoing clauses of this Agreement, it shall be open to the Railway Administration on giving six months notice of such intent, to revise the charges laid down in clauses 8, 12, 13 and 19 of this Agreement." Clause 24 related to termination of the agreement in the event of non-payment of dues within one month of demand. On March, 26, 1949 the Divisional Superintendent of the E. P. Railway (successor in interest of the North Western Railway) informed the plaintiff that the rates were proposed to be increased with effect from April 1, 1949, the increased charges being mentioned in that letter. As this intimation was not in accordance with clause 23 of the agreement the plaintiff refused to agree to the increase. Other objections were also raised, one of the objections being that the charges were excessive. The Divisional Superintendent addressed another letter on May 18, 1949 informing the plaintiff that with effect from December 1, 1949 the charges mentioned therein would be made. A good deal of correspondence and discussions between the representatives of the plaintiff and the railway authorities took place and by a letter dated July 20, 1951 the Divisional Superintendent, intimated that the revised siding charges in force from December 1, 1949 were purely provisional and were subject to revision. Meanwhile and subsequent to the above date the required tests were made to determine the charges. In September l951 the Divisional Superintendent wrote to the plaintiff that the siding charges should be paid with effect from December 1, 1949 to September 30, 1951 at the following rates:

(i) Per 4 wheeled wagon Rs. 5/-

(ii) Per 6 wheeled wagon Rs. 7/8/-

(iii) Per 8 wheeled wagon Rs. 10/-

The plaintiff protested against what was called, the exorbitant nature of charges and made it clear that the letter of September 1951 did not comply with clause 23 of the agreement and that the charges were unreasonable and could not be legitimately made. Another letter dated October 26/November 6, 1951 was sent by the Divisional Superintendent saying that the siding charges to be levied with effect from first October 1951 were being assessed and would be intimated to the plaintiff and meanwhile it should continue to pay the charges demanded in the letter of September 1951 provisionally. The Divisional Superintendent addressed another letter dated Novembe