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2008 Supreme(Gau) 401

IN THE HIGH COURT OF GAUHATI
Brojendra Prasad Katakey, J.
Union of India (UOI) - Appellants
Vs.
Harinagar Sugar Mills Limited - Respondent
Decided On : 02.06.2008

The main legal point established in the judgment is the duty of the Tribunal to consider all questions raised, frame and record issues, and record findings on each issue. The judgment also clarifies the maintainability of appeals against the original judgment and order after rejection of the application seeking review, and the limited scope of review.

Headnote:

Railway Administration - Refund of freight over charge - Indian Railway Commercial Manual - Jurisdiction to entertain dispute - Review petitions - Maintainability of appeals - Doctrine of merger - Scope of review - Duty of the Tribunal to frame and record issues - Remand to the Tribunal for fresh decision

Fact of the Case:

The respondent filed applications against the Railway Administration for refund of freight overcharge and compensation for short delivery of consignment. The Railway contested the claims, and the Tribunal directed the Railway Administration to pay the amounts with interest and cost. The Railway Administration filed review petitions seeking review of the judgments and orders, which were dismissed. The Railway Administration challenged both the original judgments and orders as well as the orders passed in the review petition.

Finding of the Court:

The Court found that the judgments and orders passed by the Tribunal were without considering the contentions of the Railway Administration. The Tribunal failed to address all the questions raised and did not go into the provisions of the Indian Railway Commercial Manual relating to interception/diversion orders. As a result, the Court set aside the judgments and orders and remitted the matters to the Tribunal for fresh decisions.

Issues: The issues included the maintainability of appeals, the scope of review, the duty of the Tribunal to frame and record issues, and the jurisdiction of the Tribunal to entertain the application questioning the penalty imposed by the Railway Administration due to excess weight found on enroute weighment.

Ratio Decidendi: The Court held that an appeal against the original judgment and order after rejection of the application seeking review is maintainable. It also emphasized the duty of the Tribunal to frame and record issues, both on facts and law, and to record findings on each issue. The Court discussed the doctrine of merger and the scope of review, highlighting that the review is not an appeal in disguise and has a limited scope.

Final Decision: The appeals were allowed, and the impugned judgments and orders were set aside. The matters were remitted to the Tribunal for fresh decisions, with directions to dispose of the proceedings expeditiously, preferably within a period of six months from the date of receipt of the records. No costs were awarded.

JUDGMENT

B.P. Katakey, J.

1. The respondent in MFA No. 54/2007 filed an application being Application No. 88/20004 against the Railway Administration for refund of freight over charge amounting to Rs. 3,54,236/- with interest contending that the goods booked vide different railway receipts were not delivered in the destination station but was delivered at a station much before the destination station though they collected the freight up to the destination station as well as the demurrage charged. The respondents in MFA No. 89/2007 approached the learned Tribunal in Application No. 149/2005 claiming compensation for short delivery of the consignment at the destination station as well as challenging the penalty imposed for the excess weight detected in enroute weighment. In both the cases the railway contested the claim. In the reply filed in Application No. 88/04, it has been contended by the railway that as the goods reached the destination station JTTN before effecting the interception/diversion order, such interception order stands automatically cancelled in terms of the Indian Railway Commercial Manual and thereafter, the goods were arranged to be delivered at DMV (diversion station) at the request of the applicant who undertook to pay all necessary charges/railway dues and therefore, the applicant is liable to pay the freight as well as demurrage charges. In Application No. 149/2005, the Railway Administration in the objection apart from other grounds have taken the stand that the Tribunal has no jurisdiction to entertain any dispute relating to the imposition of penal charges for excess weight detected.

2. The learned Tribunal on the basis of the materials available on record vide orders dated 5-9-2006 and 7-12-2006 directed the Railway Administration to pay a sum of Rs. 1,78,200/- and Rs. 5,20,800/- with interest and cost in respect of Application Nos. 88/2004 and 149/2005, respectively. In Application No. 149/05, the learned Tribunal has also condoned the penal charges imposed by the Railway Administration. The Railway Administration thereafter, filed review petitions, which were registered a Review Petition Nos. 19/2006 and 2/2007, respectively, seeking review of the aforesaid judgments and orders passed by the learned Tribunal, which were, however, dismissed vide orders dated 11-4-2007 and 7-3-2007. The Railway Administration in the present appeals has challenged both the original judgments and orders as well as the orders passed in the review petition rejecting the same.

3. I have heard Mr. S. Sarma and Mr. U.K. Nair, the learned Counsel for the appellants and Mr. A.K. Saraf, the learned Sr. Counsel appearing on behalf of the respondents.

4. The learned Counsel for the appellants have submitted that the learned Tribunal without recording any finding on the question involved passed by the judgments and orders, in as much as it did not take into consideration the plea of the Railway Administration relating to the request made by the applicant for sending back the consignment from the destination station to another station with an undertaking to pay all the railway charges and also the provisions contained in the Indian Railway Commercial Manual relating to cancellation of the interception/diversion order. According to the learned Counsel, the learned Tribunal did not also consider the plea of the Railway relating to the jurisdiction to entertain the application challenging the penalty imposed due to the over weight detected during enroute weighment. It has further been contended that the Tribunal also did not consider the endorsement contained in the RR while passing the impugned judgment and orders and, therefore, it is a fit case where the judgments and orders passed by the learned Tribunal may be set aside and the matter may be remitted to the learned Tribunal for giving a fresh decision on all the questions raised.

5. Dr. Saraf, the learned Sr. counsel has submitted that since the Railway Administration filed the review















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