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2019 Supreme(Kar) 303

IN THE HIGH COURT OF KARNATAKA
ASHOK G. NIJAGANNAVAR, J.
Union Of India - Appellant
Versus
Mineral enterprises pvt. Ltd. - Respondent
Miscellaneous First Appeal No. 11407 of 2012
Decided on : 24-05-2019

Advocates:
Advocate Appeared:
Kavitha H.C., Adv., Aditya Narayan, Adv.

Headnote:

Schedule to the Indian Limitation Act, 1963 - Article 113 and 17(i)(c) - Railways Act - Sections 106 and 78(B) - Contract Act - New Act - Section 106 - Refund of excess freight charges - oral and documentary evidence placed - Railways to refund excess freight charges - Whether claim is barred by limitation - Whether applicant is entitled for refund with interest from respondent - To what relief - Whether learned Railway Claims Tribunal has committed error in allowing the claim for refund of excess charges - Respondent Enterprises was transporting minerals through the appellant railways from Ammasandra to Panamburu as per the rates fixed for transportation of the consignment - Distance from Railway Station to Panamburu was calculated as 365 Kms. and freight was charged as per the rate fixed by railways - Freight charges were dependent on the distance between the place of loading and unloading of consignment. Later, on enquiry it was learnt actual distance between Ammasandra Railway Station to Panamburu post is only 359 Kms. and not 365 Kms. as charged by the appellant railways - Respondent Company made correspondence with the railways through letters dated 3.10.2006, 5.5.2007 and 20.07.2007 requesting to take corrective action - railways settled the claim of respondent Company in respect of excess freight charges which were within the limitation period and the remaining excess charges were not paid on the reason that they are barred by limitation. Being aggrieved by the repudiation of claim for remaining excess freight charges by the railways – Held, petitioner discovered the mistake committed in paying the over charges, the limitation is not saved by operation of Section 17(i)(c) of the Limitation Act. When there is a specific bar under Section 78(B) of the Railways Act (Old) and Section 106 of the New Act the claims barred by limitation cannot be entertained. No doubt, the principles of unjust enrichment as observed by the Honble Supreme Court in the decision in the case of Mahabir Kishore and others v. State of M.P., (1990) AIR SC 313, in view of Section 72 of the Contract Act, are justified. But in view of the ratio laid down by the Honble Supreme Court in a decision in the case of Birla Cement Works vs. G.M., Western Railways, (1995) 2 SCC 493, the claims which are barred by limitation cannot be entertained. Even if the mistake committed in paying the overcharges are discovered at a later date, the limitation is not saved. The ratio laid down is the binding precedent as the facts involved in the present case are similar to that of the facts in the said decision - Appeal is allowed

JUDGMENT :

Ashok G. Nijagannavar, J.

Though this appeal is coming on for admission, with the consent of the learned counsel for the appellants and the respondent, arguments are heard on merits.

2. The respondent before the Tribunal is the appellant in this appeal. This appeal is filed for setting aside the impugned order dated 15.6.2012 in O.A. No.III 1/2009 passed by the Railway Claims Tribunal, Bengaluru Bench at Bengaluru.

3. The appellant is the Union of India represented by (i) the General Manager, South Western Railway, Hubli, (ii) South Central Railway, Secunderabad. The facts briefly stated are that the respondent M/s Mineral Enterprises Pvt. Ltd., was transporting the minerals through the appellant railways from Ammasandra to Panamburu as per the rates fixed for transportation of the consignment. The distance from Ammasandra Railway Station to Panamburu was calculated as 365 Kms. and freight was charged as per the rate fixed by the railways. The freight charges were dependent on the distance between the place of loading and unloading of consignment. Later, on enquiry it was learnt that the actual distance between Ammasandra Railway Station to Panamburu post is only 359 Kms. and not 365 Kms. as charged by the appellant railways. Therefore, the respondent Company made correspondence with the railways through letters dated 3.10.2006, 5.5.2007 and 20.07.2007 requesting to take corrective action. The appellant railways settled the claim of respondent Company in respect of excess freight charges which were within the limitation period and the remaining excess charges were not paid on the reason that they are barred by limitation. Being aggrieved by the repudiation of claim for remaining excess freight charges by the railways, the respondent filed a claim petition before the Railway Claims Tribunal.

4. On appearance the appellant railways filed reply statement contending that the letter correspondence made in respect of the alleged refund of excess freight charges do not reflect or indicate that the applicant has made the claim within the period of six months. The applicant had sought the clarification only with regard to the distance from Ammasandra Railway Station to Panamburu vide their letter dated 03.10.2006, but has not made any claim in respect of the refund of excess freight charges alleged to have been paid by the applicant. The Senior Division Commercial Manager has appropriately replied the applicant about the actual distance between Ammasandra to Panamburu. The consignment of iron ore booked are charged as per the rate list of railways. On the claim of refund of the difference in freight is required to be made within six months from the date of booking of consignment, whereas the applicant has submitted the claim only on 22.8.2007 after the lapse of six months in respect of 22 RRs out of 30 RRs which has been repudiated under the letter dated 18.1.2008 whereas the balance 8 RRs were considered by the railways and refunded a sum of Rs.2,78,860/-. The freight applicable for the consignment booked by the applicant was calculated as per the distance of 365 Kms. and not 358 Kms. and the said rate was accepted by the applicant at the time of booking consignment. Thereafter the applicant has only sought for clarification with regard to the distance from Ammasandra Railway Station to Panamburu Railway Station vide their letter dated 3.10.2006 . But they have not made any claim in respect of refund of excess freight charges alleged to have been paid.

5. Based on the aforesaid pleadings the Railway Claims Tribunal has framed the following issues:

i. Whether the claim is barred by limitation ?

ii. Whether the applicant is entitled for refund of Rs.8,85,173/- with interest from the respondent ?

iii. To what relief ?

6. The representative of the respondent Company was examined as AW.1 and the documents were marked as A1 to A11. The Commercial Inspector / CCO (O) SBC Railways was examined as RW.1 and the documents were marked as R1 to R




































































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