GAUHATI HIGH COURT
A. K. PATNAIK, J.
Raghu Forwarding Agency and another -Appellant
Versus
Union of India and others -Respondent
Civil Rule No. 850 of 1997
Decided On : 03-08-1999
RAILWAY ACT - SECTION 73, 78, 79 - WEIGHMENT OF GOODS - PUNCTIVE CHARGES FOR OVERLOADING - WEIGHMENT OF GOODS ENROUTE - PRINCIPLES OF NATURAL JUSTICE - ESTOPPEL - WEIGHMENT AT PRIVATE WEIGH-BRIDGE - EXECUTIVE INSTRUCTIONS IN INDIAN RAILWAY COMMERCIAL MANUAL - WHARFAGE AND DEMURRAGE CHARGES - BONA FIDE DISPUTE - BANK GUARANTEE - REFUND.
Fact of the Case:
The petitioners challenged the recovery of punitive charges for overloading of wagons, wharfage, and demurrage charges by the railway administration. The dispute arose due to a difference in weighment results between the weigh-bridge at Laksar Railway Station and the weigh-bridge at Panipat Thermal Power Station. The petitioners claimed that the weighment at Laksar was incorrect and requested reweighment, which was permitted by the railway administration. However, the railway administration did not accept the results of the reweighment and continued to demand punitive charges.
Finding of the Court:
The court held that there is no provision in the Railway Act, 1989, or the rules made thereunder for serving a notice to a party before weighment at a railway station enroute. The court also held that the railway administration has the right to reweigh any consignment without giving prior notice to the consignor, consignee, or endorsee. The court further held that the railway administration was not bound by the principles of estoppel to accept the result of the reweighment permitted at the request of the petitioners. The court also held that until Rules are made by the Central Government under Section 79 and Section 87(2)(g) of the Act, 1989 to the contrary, the result of weighment or reweighment at a weigh-bridge other than a railway weigh-bridge cannot be held to be binding on the railway administration.
Issues: 1. Whether the railway administration is required to serve a notice to a party before weighment at a railway station enroute? 2. Whether the railway administration has the right to reweigh any consignment without giving prior notice to the consignor, consignee, or endorsee? 3. Whether the railway administration is bound by the principles of estoppel to accept the result of the reweighment permitted at the request of the petitioners? 4. Whether the result of weighment or reweighment at a weigh-bridge other than a railway weigh-bridge is binding on the railway administration?
Ratio Decidendi: 1. Section 73 of the Railway Act, 1989, does not require the railway administration to serve a notice to a party before weighment at a railway station enroute. 2. Section 78 of the Railway Act, 1989, empowers the railway administration to reweigh any consignment without giving prior notice to the consignor, consignee, or endorsee. 3. The railway administration is not bound by the principles of estoppel to accept the result of the reweighment permitted at the request of the petitioners. 4. Until Rules are made by the Central Government under Section 79 and Section 87(2)(g) of the Act, 1989 to the contrary, the result of weighment or reweighment at a weigh-bridge other than a railway weigh-bridge cannot be held to be binding on the railway administration.
Final Decision: The court partly allowed the writ petition. The court directed the respondents to release the Bank Guarantee furnished by the petitioners towards the demand of wharfage and demurrage as the same is not payable by the petitioners. However, the court did not direct the respondents to refund the punitive charges of Rs. 9,50,114/- recovered from the petitioners for overloading of the wagons.
In this application under Article 226 of the Constitution, the petitioners have sought for a direction on the respondents to refund the punitive charges of Rs. 9,50,114/- recovered from the petitioners for carrying goods in wagons beyond the permissible capacity and for directing the respondents to withdraw the demand of wharfage and demurrage charges and to release the five wagons of coal detained by the respondents for the purpose of realizing the said demurrage and wharfage charges.
2. The facts briefly are that the petitioner No. 1 registered an indent for a rake for despatch of coal from Jogighopa Railway Station. Pursuant to such registration of indent, a rake was placed and the petitioner No. 1 loaded Nangal Dry Coal in 35 wagons on 26-1-97. Since no weigh-bridge was available at Jogighopa Railway Station, the coal was loaded in the said wagons without weighment and a certificate dated 26-1-97 was issued by the Railway-authorities of Jogighopa Railway Station to the effect that measurement of the loaded wagons could not be taken by the supplied measurement rod due to insufficient space inside the wagons between the loadable height and roof of the wagons, but on visual check, wagons were found correctly loaded up to the permissible loading height, marked inside the wagons under the supervision of the Chief Goods Superintendent (for short, "the CGS"). In the R. Rs. issued by the Railway-authorities of Jogighopa Railway Station, however, endorsements were made that the wagons were to be weighed at the weigh-bridge station enroute or at destination. The 35 wagons were thereafter despatched and at the Station Laksar the wagons were weighed on the weigh-bridge and it was found that most of the 35 wagons were over-loaded beyond the permissible limit. Thereafter, when the wagons arrived at the destination Station Rohtak in Haryana on 1-2-97, the CGS, Rohtak intimated the petitioner No. 2, the consignor of the coal, to deposit Rs. 12,23,860/- as undercharges at the time of delivery by his letter dated 1-2-97. In reply, the petitioner No. 2 wrote to the CGS, Northern Railway, Rohtak, inter alia, that before issuing the R.Rs. the authorities of the Forwarding Station checked the loaded height of the coal according to their specification and then issued the R.Rs. after endorsing on each R.R. that the coal was loaded within the permissible height. In the said letter dated 1-2-97, the petitioner No. 2 stated that on these facts the question of any under-charges for overloading did not arise and it should be presumed that the weigh-bridge where the wagons were weighed was not in working order. In the said letter dated 1-2-87, the petitioner No. 2 further requested the CGS to check the loading mark of each loaded wagon and to send the rake for reweighment as the petitioner No. 2 was not ready to accept the excess weight. But the CGS, Rohtak Railway Station informed the petitioner No. 2 in his letter dated 2-2-97 that the coal rake containing 35 wagons was weighed by the vigilance team at Laksar and on the basis of such weighment punitive charges amounting to Rs. 9,50,114/- were raised and requested the petitioner No. 2 for arranging payment before taking delivery of the same. The petitioner No. 2 then wrote to the CGS, Rohtak Railway Station that they would furnish a Bank Guarantee for Rs. 9,50,114/- for the under-charges at the time of delivery and requested him to issue a certificate of coal height in each wagon before unloading the rake. But the said request of the petitioner No. 2 was not accepted and the CGS, Rohtak Railway Station again requested the petitioner No. 2 to pay the punitive charges in his letter dated 2-2-97. The petitioner No. 2 thereafter made a request to send the rake of coal for reweighment at the nearest weigh-bridge in their presence and that they were willing to pay the amount of reweighment and haulage charges on demand. The petitioner No. 2 was thereafter informed on 4-2-97 that reweighment of coal
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