SUPREME COURT OF INDIA
Hon’ble Mr. Justice K.S. Radhakrishnan and Hon’ble Mr. Justice Dipak Misra
Civil Appeal No. 7589 of 2012
SHREE SHYAM AGENCY – Appellant
Versus
UNION OF INDIA & ORS. – Respondents
Decided on : 18.10.2012
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K.S. Radhakrishnan, J. — Leave granted.
2. We are, in this appeal, concerned with the question whether the appellant is legally entitled to be intervened in a claim petition filed by the 3rd respondent herein under Section 16 of the Railway Claims Tribunal Act, 1987 (for short ‘Tribunal Act’).
3. The claim petition OA No. (1) 2 of 2010 was preferred by the 3rd
respondent against the Southern and Eastern Central Railways before the Railway Claims Tribunal, Chennai Bench claiming an amount of Rs.9,46,85,726/- together with the interest @ 12% per annum from the date of filing of the petition till the date of payment and also for other consequential reliefs.
4. In the claim petition, the appellant herein filed IA. 3/2011 for intervention claiming to be an interested party stating that its.presence is necessary for a proper adjudication of the claim. LA4/2011 was also preferred by the 2nd respondent herein Central Railway to implead three other parties, namely Subham Sugar Agencies, Umesh Chaudhary, Ex. Goods Supervisor, Tatuha and Ambika Sugars Ltd., contending that the Railway Claims Tribunal (for short ‘Tribunal’) has no jurisdiction to proceed with the case since it involved contractual disputes, criminal conspiracy, cheating and that a complaint filed by the above mentioned parties are pending before the Chief Judicial Magistrate, Muzaffarpur, Bihar.
5. The Tribunal heard both the applications, i.e. IA3/2011 and IA4/2011 and a common order was passed on 15.4.2011, stating that interse disputes between private parties cannot be decided by the Tribunal in a claim petition. It also took the view that the Railway Administration through those parties is trying to linger on with the proceedings and, under no circumstance, the application for impleading the other three parties can be entertained. Both IA.3/2011 and IA.4/2011 were accordingly dismissed.
6. Aggrieved by the order passed by the Tribunal, C.R.P. (PD) No. 1713 of 2011 was preferred by the appellant herein, CRP (PD) No. 2152 of 2011 and CRP (PD) No. 2153 of 2011 by Southern Railway and Central Railway, before the High Court of Judicature at Madras. All the three civil revision petitions were heard and a common order was passed on 9.9.2011 dismissing all the revision petitions and confirming the order passed by the Tribunal, against which the appellant in C.R.P. (PD) No. 1713 of 2011 has come up before this Court with the present appeal. Railway Administration, however, accepted the order passed by the Tribunal which has been affirmed by the High Court by the impugned judgment. .
7. For disposal of this appeal, reference to few facts is necessary. Claimant, the third respondent herein a company having its head office at Chennai, is engaged in the business of manufacturer of white crystal sugar having its factories at Thirumanthankudi village, Papiasam Taluk, Thanjavur District and A Chittur Village, Virudhachalam Taluk, Cuddalore District. They used to sell free sugar in Northern Indian markets consisting of West Bengal, Bihar, etc. by transporting the consignments in racks through the services provided by the Railways. Railway receipts are made out showing the consignee as “Self’ which are thereafter endorsed by the consignor to the buyer on payment of the sale price. The endorsed consignee-buyer takes delivery of goods of the respective destinations by surrender of the Railway Receipts. Claimant states that a dealer, by name Shubham Sugar Agencies, Kolkata, placed an order with the claimant for purchase of 27000 quintal of free sale sugar with payment conditions stipulating that the endorsed railway receipts would be released on receipt of entire sale consideration. Claimant stated that it has booked consignment on 1.2.2010 for transportation from Kumbakonam to Fatuha, Bihar and that the railway receipts were drawn as “Self’ and were in the custody of the claimant and that the purchaser was expected to remit the sale price and get the railway receipt
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