IN THE HIGH COURT OF GAUHATI
PARTHIV JYOTI SAIKIA, J.
Union of India - Appellant
Versus
Hill Trade Agencies - Respondent.
MFA Nos. 41 and 42 of 2015
Decided on : 10-12-2021
Railways Act, 1989 – Section23, 74, 108 - Compensation - Opening of additional lines of railway and deviation lines - Passing of property in the goods covered by railway receipt - Person entitled to claim compensation. - Whether section 74 of the Railways Act of 1989 debars the consignor to claim excess freight charge, which was paid at the time of booking – Held, Court is of the opinion that in this matter, section 74 of the Railways Act of 1989 has no relevance -Section 74 says that once the Railways receipt is handed over to the consignee, then the consignee attains all the rights and liabilities of the consignor in respect of the consignment - On the other hand, section 108 of the Railways Act of 1989, speaks about payment of compensation to the consignee in case of loss, destruction, damage, deterioration or non-delivery of goods entrusted to it for carriage - Therefore, section 108 of the Railways Act is also not relevant in this case - This court in MFA, it is hereby held that the consigner is entitled to seek refund of the excess freight charge, which it paid to the Railways - Therefore, court is of the opinion that the present two appeals have no merit - The Railway Claims Tribunal has correctly decided the claims and these two judgments do not require any interference of this court - Appeals dismissed.
JUDGMENT :
1. Heard Ms. U. Chakraborty, the learned senior counsel appearing for the Railways-appellant. Also heard Ms. M. Sharma, the learned counsel appearing for the respondent. This is a common Judgment for these two cases.
2. The appeals are filed under section 23 of the Railways Act, 1987, against the judgment dated 20.4.2015, passed by the Railways Claims Tribunal at Guwahati in Claim Application No. OA III/GHY/2005/0618(New), (Old No. OA 618/2005) and the judgment dated 20.4.2015 passed by the Railways Claims Tribunal at Guwahati in Claim Application No. OA.III/GHY/2005/0629(New), (Old No. OA 0629/05).’
3. The short question that arises in these two appeals is as to whether section 74 of the Railways Act of 1989 debars the consignor to claim excess freight charge, which was paid at the time of booking.
4. This court in MFA No. 7/2005 has held as under:
5. The learned counsel Ms. Chakraborty has submitted that the respondent, being the consignor, is not entitled to seek compensation on the ground that when Railways receipt is handed over to the consignee, it is the consignee who can seek compensation from the Railways. Ms. Chakraborty has, therefore, referred to section 108 of the Railways Act of 1989.
6. Per contra, Ms. Sharma submits that the freight charge is normally paid on the basis of distance between the loading point to the destination point and that is why Ms Sharma, has supported the judgments of the Tribunal.
7. In MFA No. 40/2015, the Railway received the freight charge for the distance of 2,226 kilometers @ Rs. 164.34 per quintal. The train actually travelled 2070 kilometers and, therefore, the Railways should have charged Rs. 156.73 per quintal.
8. In MFA No. 41/2015, the Railways collected freight charge for covering distance of 1,852 kilometers @ 147.13 per quintal, whereas the train actually travelled 1839 kilometers and the correct freight charge should have been Rs. 145.86. That is the reason why the Tribunal directed the Railways to pay certain amount to the consignor.
9. The freight charge is paid at a time of initial booking. The consignor pays the freight charge on the basis of the distance to be covered by the train. If the consignor pays more then what it should have paid, naturally the Railways has to return him the access money. This court is of the opinion that in this matter, section 74 of the Railways Act of 1989 has no relevance. Section 74 says that once the Railways receipt is handed over to the consignee, then the consignee attains all the rights and liabilities of the consignor in respect of the consignment. On the other hand, section 108 of the Railways Act of 1989, speaks about payment of compensation to the consignee in case of loss, destruction, damage, deterioration or non-delivery of goods entrusted to it for carriage. Therefore, section 108 of the Railways Act is also not relevant in this case.
10. Under the aforesaid circumstances and in view of the decision of this court in MFA 7/2005, it is hereby held that the consi
Railway claims require proper authorization and notice to appropriate authorities under applicable law; failure to adhere results in claim invalidity.
Failure to comply with the notice requirement under Section 106 of the Railways Act renders a claim invalid, requiring strict adherence to legal procedures for claiming refunds.
Compliance with notice requirements under Section 106 of the Railways Act is mandatory for claim validity; failure to comply renders claims invalid.
The distinction between 'overcharge' and 'illegal charge' is crucial; an overcharge is excess payment due to a mistake, while an illegal charge is impermissible by law.
Statutory notice for refund claims under transportation law applies only to charges exceeding prescribed rates. Official documentation acknowledging refund eligibility by a service provider supersede....
Recovery of undercharged freight must occur before delivery of goods; demands made post-delivery are invalid under Railways Act, 1989.
Railway authorities must provide adequate documentation to impose penal freights for overloading; absence of such evidence justifies a refund of excess charges.
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