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2026 Supreme(Gau) 50

THE GAUHATI HIGH COURT,(HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
PARTHIVJYOTI SAIKIA, J.
Union Of India Rep. By General Manager, N.F. Railway, Maligaon – Appellant 
Versus
M/S Hindustan Goods Carriers Pvt. Ltd – Respondent 
MFA 9 Of 2024
Decided On : 06-01-2026

Advocates Appeared:
For the Appellants : Mr. Koustov Gogoi,
For the Respondents: Mr. K. P. Maheswari, Divyansh Rathi, M. Kalita

Compliance with notice requirements under Section 106 of the Railways Act is mandatory; failure to adhere renders the claim invalid.

Headnote:(A) Railway Claims Tribunal Act, 1987 - Section 23 - Railways Act, 1989 - Section 106 - Appeal against Tribunal's order for refund of overcharge - Respondent claimed refund after payment under allegation of overloading; Tribunal allowed claim - Appellant contended that original application was invalid due to non-compliance with notice requirements under Section 106 - Court found application was indeed non-compliant and set aside the Tribunal's decision. (Paras 2-8)

(B) Compliance with Notice Requirement - Under Section 106, lack of timely notice of claim for compensation or refund invalidates the claim - The requirement is mandatory for maintainability of the application. (Paras 6, 7)

Facts of the case:
The dispute arose from the overcharging by the Railways for the carriage of mixed goods, with the respondent subsequently seeking a refund for payment made under protest.

Findings of Court:
The original application was held bad in law due to failure to comply with Section 106 of the Railways Act, necessitating the setting aside of the Tribunal's order.

Issues: The core issue was whether the respondent's claim for a refund was valid in light of the notice requirements stipulated by Section 106 of the Railways Act.

Ratio Decidendi: The court concluded that compliance with the notice provisions of Section 106 is essential for any claim regarding overcharges, hence failure to adhere invalidates the claim.

Result: Appeal allowed.

Table of Content
1. appeal challenges railway claims tribunal decision. (Para 2 , 3 , 4)
2. important provisions of section 106 of railways act. (Para 6)
3. non-compliance with legal provisions invalidates claim. (Para 7)
4. court's decision to allow the appeal. (Para 8)

JUDGMENT :

PARTHIVJYOTI SAIKIA, J.

1. Heard Mr. K. Gogoi, learned counsel appearing for the appellant. Also heard Mr. D. Rathi, the learned counsel representing the respondent.

2. This is an appeal under Section 23 of the of the Railway Claims Tribunal Act, 1987, challenging the judgment and order dated 29.11.2023 passed by the Railway Claims Tribunal, Guwahati Bench in O.A. No.III/96/2015.

3. On 03.11.2014, 23.11.2014 and 23.12.2014, consignment of mixed goods were booked under the PW Bill No.460987, 492356 and 492363 from Vapi to NGC. The Railways demanded Rs. 1,83,597/- vide Railway Letter dated 17.12.2014 on an allegation of overloading and the applicant paid the said amount vide MR Nos.566219, 566343 to 566345. The respondent claimed refund of the said amount.

4. The Tribunal allowed the application and directed the appellant to refund the amount of Rs. 1,83,597/- to the respondent.

5. I have considered the submissions made by the learned counsel of both sides.

6. At this stage, a brief visit to Section 106 of the RAILWAYS ACT , 1989 would be fruitful. The same is quoted as under:

“106. Notice of claim for compensation and refund of overcharge.—(1) A person shall not be entitled to claim compensation against a railway administration for the loss, destruction, damage, deterioration or non-delivery of goods carried by railway, unless a notice thereof is served by him or on his behalf,— (a) to the railway administration to which the goods are entrusted for carriage; or (b) to the railway administration on whose railway the destination station lies, or the loss, destruction, damage or deterioration occurs, within a period of six months from the date of entrustment of the goods. (2) Any information demanded or enquiry made in writing from, or any complaint made in writing to, any of the railway administrations mentioned in sub-section (1) by or on behalf of the person within the said period of six months regarding the non-delivery or delayed delivery of the goods with particulars sufficient to identify the goods shall, for the purpose of this section, be deemed to be a notice of claim for compensation. (3) A person shall not be entitled to a refund of an overcharge in respect of goods carried by railway unless a notice therefor has been served by him or on his behalf to the railway administration to which the overcharge has been paid within six months from the date of such payment or the date of delivery of such goods at the destination station, whichever is later.”

7. On the face of the record, the original application filed by the respondent is bad for non- compliance of the provisions of Section 106 of the Act of 1989. Therefore, the impugned judgment passed by the Tribunal is bad in law and is set aside.

8. The appeal is allowed accordingly.

Send back the trial court record.

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