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2026 Supreme(Gau) 401

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) 
MRIDUL KUMAR KALITA, J.
Union Of India, Represented By The General Manager – Appellant 
Versus
M/S Unique Coal Trader – Respondent
MFA 92 of 2011
Decided On : 25-02-2026

Advocates Appeared:
For the Appellant : Mr. B. Sharma, Standing Counsel, Railway
For the Respondent:Mr. D. Rathi, Advocate

Railway authorities must provide adequate documentation to impose penal freights for overloading; absence of such evidence justifies a refund of excess charges.

Headnote:(A) Railway Claims Tribunal Act, 1987 - Sections 16 and 23 - Appeal against judgment for refund of excess freight - Tribunal allowed refund of Rs.52,968/- with interest at 6% from the date of claim; further interest at 12% if unpaid after three months - Imposition of penal freight was deemed arbitrary due to lack of supporting documentation by the railways - Weight of goods contested as overloading but no weighment chart was provided by the railways (Paras 2, 5, 11, 12).

(B) Legal Principle - The responsibility to substantiate claims of overloading lies with the Railway Authority; absence of reweighment chart necessitates refund of incorrect charges.

(C) Insurance of due process required in charging freight based on permissible weights.

(D) Issued directions regarding failure of payment within stipulated timeline thereby impacting calculated assessments for interest charges.

Facts of the case:
Respondent claimed refund for excess freight paid due to alleged overloading; railways contested this by citing imposed punitive charges under the Railways Act, which were deemed unsupported due to lack of documentation, thus the Tribunal awarded the refund to claimant.

Findings of Court:
The Tribunal correctly decided refund of penal charges was warranted due to absence of compelling evidence from the respondent regarding the authenticity of the claimed overloading, ruling that railways failed to meet burden of proof.

Issues: The primary issues included whether the notices were served, if the applicant had legal title to claim, and whether overloading justifications by the railways were valid.

Ratio Decidendi: The court concluded that the railway authorities did not adequately prove the imposition of penal freights under applicable statutory provisions, thereby validating the Tribunal's decision to refund the excess charges to the respondent.

Result: Appeal dismissed.

Table of Content
1. overview of the appeal process. (Para 1 , 2)
2. facts of the case concerning overloaded freight. (Para 3 , 4)
3. arguments for imposing punitive charges. (Para 6 , 7)
4. respondent's counterarguments to the imposition of charges. (Para 8 , 9)
5. court's analysis of evidence and ruling. (Para 10 , 11)
6. conclusion of the appeal and judgment dismissal. (Para 12 , 13 , 14)

JUDGMENT :

MRIDUL KUMAR KALITA, J.

1. Heard Mr. B. Sharma, the learned standing counsel, Railways, appearing for the appellant. Also heard Mr. D. Rathi, the learned counsel for the respondent.

2. This appeal under Section 23 of the Railway Claims Tribunal Act, 1987, has been filed by the appellant, Union of India, impugning the judgment and award dated 27.04.2011 passed by the Railway Claims Tribunal, Guwahati Bench, in O.A. No. 166/2003.

3. The facts relevant for consideration of the instant appeal, in brief, is that the respondent had filed an original application before the Railway Claims Tribunal, Guwahati Bench under Section 16 of the Railway Claims Tribunal Act 1987, inter alia, stating that the respondent/claimant had booked a train load of consignment from JPZ to MXX on 03.06.2000 bearing invoice Nos. 185 to 194 as well as Railway Receipt Nos. 740080 to 740089. It was contended by the present respondent before the Railway Claims Tribunal, as applicants that they had booked 967 metric ton of consignment, which is permissible weight for charging of freight at normal traffic rate but the railways had, after reweighing of the goods, found it to be 988.4 metric tons and even then, it was increased to 998.9 metric ton on the allegation of overloading and imposed penal freights on imaginary weight, which according to the applicant, was totally wrong and as such, the applicant claimed refund of excess freight paid by them, which comes to Rs.52,968/-. The railways contested the claim of the applicant by filing the written statement, wherein they took the plea that the Railways have correctly imposed penal freight in exercise of powers under Section 73 of the Railways Act, 1989. The Railways also denied their liability to make refund of overcharges of Rs.52,968/- and had prayed for dismissal of the original application.

4. On the basis of the pleadings of the parties, following issues were framed by the Railway Claims Tribunal, Guwahati Branch:-

“(i) Whether notice under Section 106 of the Railways Act, 1989 was served by the applicant to the respondent?

(ii) Whether the applicant holds legal title for the claim as applied?

(iii) Whether the respondent is justified in realizing the penal freight on account of overloading and prove that there was overloading?

(iv) Whether the applicant proves that they have not overloaded and they have been wrongly levied penal freight?

(v) Relief & Order?”

5. During the enquiry before the Tribunal, the respondent (claimant) produced the copies of Railways receipts and other documents whereas the Railway Authority produced copies of circular dated 14.03.1996 as well as Weigh Bridge certificate and date wise condition of weighbridge. However, by the impugned judgment and order, the Railways Claims Tribunal, Guwahati Bench allowed the original application filed by the present respondent and directed the Railways to refund an amount of Rs.52,968/- along with an interest at the rate of 6% per annum from the date of filing of the original application till the realization within three months from the date of impugned judgment. It was also directed if the Railways failed to refund the aforesaid amount within three months it shall carry an interest @ 12% per annum till the realization. The present appellant was also directed to refund the application fees of Rs.2,510/- and legal practitioners’ fee of Rs.1,500/- to the claimant. Being aggrieved with the aforesaid judgment and order, the present appellant has preferred the instant appeal.

6. Mr. B. Sharma, the learned standing counsel, Railways, has submitted that the Railway Claims T

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