SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2022 Supreme(Jhk) 1270

IN THE HIGH COURT OF JHARKHAND AT RANCHI
GAUTAM KUMAR CHOUDHARY, J.
Union of India – Appellant
Versus
M/s. Muva Industries Ltd. - Respondent
M.A. No. 30 of 2011
Decided on : 10-02-2022

Advocates:
Advocate Appeared:
For the Appellants :Mr. Mahesh Tewari, Advocate
For the Respondents:Mr. Anil Kumar Sinha, Advocate

The Railways have the right to reweigh consignments and impose penalty charges for overloading as per Section 78 of the Railways Act 1989, with the aim of preventing accidents and covering replacement costs.

Headnote:

Railway Claims Tribunal Act - Refund of punitive charges - Section 16 of Railway Claim Tribunal Act 1987 - Section 78 of the Railways Act 1989 - Union of India v. Shree Shiv Sai Steel Industries, 2019 SCC OnLine Gau 5715 : (2020) 1 Gau LR 426 : (2019) 203 AIC (Sum 20) 9 - Jagjit Cotton Textile Mills v. Chief Commercial Supdt., N.R., (1998) 5 SCC 126 - The Railways had the right to reweigh the consignment as per Section 78 of the Railways Act 1989. The recovery of penalty for overloading is permitted before the delivery of the goods. The court upheld the constitutionality of penal charges for overloading and emphasized the importance of preventing accidents and covering replacement costs.

Fact of the Case:

The respondent sought refund of punitive charges imposed by the Railways for overloading a consignment of special cement. The Railway Claims Tribunal allowed the refund, which was challenged by the appellant.

Finding of the Court:

The court found that the Railways had the right to reweigh the consignment and impose penalty charges for overloading as per Section 78 of the Railways Act 1989. The recovery of penalty before delivery of goods was upheld, and the requirement for the consignor's presence at reweighment was deemed impractical.

Issues: Refund of punitive charges, jurisdictional issues, and the right of the Railways to reweigh consignments.

Ratio Decidendi: The court upheld the constitutionality of penal charges for overloading, emphasized the importance of preventing accidents, and ruled that the Railways had the right to reweigh the consignment as per Section 78 of the Railways Act 1989.

Final Decision: The appeal was allowed, and the impugned order for refund of penalty charges was set aside.

JUDGMENT :

1. This appeal is filed under Section 23 of the Railway Claims Tribunal Act, 1987 against the judgement dated 16.09.2009 passed by the learned Member (Judicial), Railway Claims Tribunal, Ranchi Bench, Ranchi in Case No. OR-70011/2007 in favour of respondent named herein directing the appellant to refund Rs. 3,71,328/-to the respondents along with interest @ 6% per annum from 01.11.2006 till the date of payment and also cost.

2. The respondent/applicant manufactures pretressed concrete sleepers for the Indian Railways. It is the case of the respondent that with the permission of the Railway Board, 1240 MT of special cement was purchased from M/s. Ambuja Cement Eastern Ltd. This consignment was booked in 20 Wagons. The consignment was loaded from the site of dispatch, i.e. Bhatapara and the weight of the 20 wagons was 1241.00 M.T. Before reaching the destination site, i.e. Jagadishpur when the consignment was re-weighed, it was found the net weight to be 1355.40 M.T. In view of the overloading, a punitive charges amounting to Rs. 3,71,328/-was raised against the respondent.

3. The Respondent moved the Railway claim Tribunal for refund of the punitive charge under Section 16 of Railway Claim Tribunal Act 1987 which has been allowed on the basis of Annexure-5 which showed that weight of the cement was 1224.96 MT recorded by the Chief Goods Clerk, MRLB-Bhatapara under South Eastern Railways in the presence of the authorized agent of Ambuja Cement Eastern Ltd. The overloading was found en-route without notice to the applicant was wrong.

4. The appellant earlier moved this Court in W.P.(C) No. 274 /2009 challenging the order of the Railway Tribunal which was dismissed vide order dated 08.09.2010.

5. The appellant moved the Hon’ble Court in L.P.A No.493 of 2010 and their Lordships vide order dated 11.01.2011 were pleased to permit the appellant to withdraw the appeal. It was held by their Lordships that the appellant will have right to move the Appellate forum and if the appeal is filed, then question of limitation will be sympathetically considered.

6. The order has been assailed on the ground that punitive charge for the onward distance from Bhaga to Jagdishpur, was assessed on the difference between the net weight at Santhaldih weighbridge of 1355.40 and the chargeable weight of 1265.

7. It is argued on behalf of the appellant that by the order number RCT/DLI/Judl.Policy/2002-2003 dated 19.11.2007 of Railways claims Tribunal, 13/15 Moldova daily, the pecuniary jurisdiction of the concerned single member bench is restricted to Rs.2 lakhs (Rupees Two Lakhs), except in untoward and train accident cases. According to the proviso to Section 4(4) of the Railways Claims Criminal Act 1987, the single member should have referred/transferred the matter to a bench of two members that he is a division bench, when the nature of the matter so demands. Apart from the jurisdictional issue raised, it is also argued that there is provision to re-weigh and there was nothing wrong on the part of the Railway authorities to have a reweighed the consignment. During rebooking of the consignment from Bhatapara to Jagdishpur, the punitive charges were paid by respondent without any objection and without any protest. Once the excess weight had been accepted and got the same rebooked, the plea against overloading and consequent punitive charges cannot be raised. It is further argued that in LPA No. 493 of 2010, the Hon’ble court was pleased to permit the appellant to withdraw the appeal and the writ and therefore the order passed by Hon’ble. the single Judge in the writ petition does not bar the appellant from preferring the instant appeal.

8. It is submitted by the learned counsel on behalf of the respondent that Hon’ble single Bench in W.P.(C) No. 274 of 2010 by the order dated 8th September 2010 had already confirmed the order of the tribunal and dismissed the writ.

9. As far as the issue of pecuniary jurisdiction of the Tribunal is concerned, from the p

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top