IN THE HIGH COURT OF JUDICATURE AT PATNA
Mohit Kumar Shah, J.
M/s Swastik Associate - Appellant
Versus
The Union Of India & Ors. - Respondent
Civil Writ Jurisdiction Case No. 3235 of 2021
Decided On : 24-08-2021
Constitution of India – Article 226 – Petition for quashing demurrage penalty imposed upon petitioner – Case as put forth by petitioner regarding there being incessant rains resulting in petitioner being impeded from unloading cement bags from wagons has not been disputed by respondent railways – Goods Superintendent has also recommended for waiver of demurrage charges as also has stated that reasons furnished by petitioner for delay caused in removal of cement bags from wagons are genuine and in fact on account of incessant rain, cement bags could not be removed within time – Order passed by Divisional Railway Manager (Commercial), Samastipur is wholly unreasoned – Impugned order set aside and matter remanded back to Divisional Railway Manager (Commercial), Samastipur, with a direction to him to consider recommendation of Goods Superintendent and pass a reasoned and speaking order. (Paras 9, 10 and 13)
JUDGMENT
1. The instant case has been taken up for consideration through the mode of Video conferencing in view of the prevailing situation on account of COVID 19 Pandemic, requiring social distancing.
2. Heard the learned counsel for the petitioner Shri Gautam Kumar Kejriwal and the learned counsel for the Respondent- Railways, Shri Kumar Priya Ranjan, Advocate.
3. The present writ petition has been filed for quashing the demurrage penalty imposed upon the petitioner to the tune of Rs. 5,60,700/-, by the respondent Goods Superintendent, Dauram Madhepura, East Central Railway, as also for quashing the letter dated 21.01.2020, issued by the respondent Divisional Railway Manager [Commercial] East Central Railway, Samastipur, whereby and whereunder the application of the petitioner for waiver of demurrage charges been rejected.
4. The brief facts of the case are that the petitioner had booked consignment of cement bags with the railways, to be transported by Railway Wagons. The rake of 42 wagons, containing the cement consignment of the petitioner had arrived at the Dauram siding on 27.09.2019, however, the petitioner could not unload the cement bags from the wagons within the stipulated time frame and the cement bags could be unloaded only on 01.10.2019, after cessation of rains, resulting in levy of demurrage charges to the tune of Rs. 5,60,700/-. The petitioner, in terms of Clause-2 of the respondent- Railways' Rates Master Circular Demurrage-Waiver/ 2016, had paid the demurrage charges on 06.10.2019 and on the very same day had submitted waiver application before the Goods Superintendent, Dauram to be forwarded to the Divisional Railway Manager, Samastipur along with his recommendations. Thereafter, the respondent Goods Superintendent, Dauram on 06.10.2019 itself, had forwarded the application of the petitioner to the Divisional Railway Manager, Samastipur, along with his recommendation, which is reproduced herein below:-
5. The Divisional Railway Manager (Commercial), Samastipur, by the impugned letter dated 21.01.2020 has rejected the waiver application of the petitioner.
6. The learned counsel for the petitioner has submitted that the order dated 21.01.2020 on the very face of it smacks of non-application of mind and in fact, no reason whatsoever has been assigned as also the recommendations of the Goods Superintendent, Dauram, Madhepura, in favour of the petitioner, as aforesaid, has also not been considered by the learned Divisional Railway Manager resulting in the order dated 21.01.2020 being perverse and bad in the eyes of law.
7. It is further submitted by the learned counsel for the petitioner that in view of the judgment rendered by the Hon'ble Apex Court in the case of Whirlpool Corporation vs. Registrar of Trade Marks, Mumbai & Ors., reported in (1998) 8 SCC 1, the alternative remedy of appeal would not operate as a bar and the present Writ Petition would still be maintainable in as much as the impugned Order dated 21.01.2020 has been passed in violation of the principles of natural justice in as much as the Divisional Railway Manager (Commercial), Samastipur has not furnished any reason to reject the waiver application of the petitioner.
8. Per contra, the learned counsel for the respondent-Railways', Sri. Kumar Priya Ranjan, has submitted that the petitioner has the remedy of filing an appeal against the Order of rejection of his waiver application, as is stipulated in clause 3 of the Rates Master Circular Demurrage-Waiver/ 2016.
9. I have heard the learned counsel for the parties and have gone through the materials on record and I find that the case as put forth by the petitioner regarding there being incessant rains resulting in the petitioner being impeded from unloading the cement bags from the wagons has not been disputed by the respondent railways in their counter affidavit, and moreover, the Goods Superintendent has also recommended for waiver of the demurrage charges as also has stated that the reasons furnished
A.K. Kraipak v. Union of India [(1969) 2 SCC 262 : AIR 1970 SC 150]
Keshav Mills Co. Ltd. v. Union of India [(1973) 1 SCC 380 : AIR 1973 SC 389]
R. v. Gaming Board for Great Britain
S.N. Mukherjee v. Union of India
State of Orissa vs. Dhaniram Luhar
Whirlpool Corporation vs. Registrar of Trade Marks, Mumbai & Ors.
Violation of natural justice renders an impugned action maintainable for a writ petition.
The imposition of Penal Demurrage Charges without adhering to required notice and publicity violates procedural fairness, necessitating recourse to the Railway Claims Tribunal.
The central legal point established in the judgment is the requirement of a proper show cause notice and opportunity of hearing before imposing demurrage charges, emphasizing adherence to procedural ....
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