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2013 Supreme(MP) 975

MADHYA PRADESH HIGH COURT AT JABALBUR BENCH
Krishn Kumar Lahoti, M.A.Siddqui, JJ.
Union of India & Ors. - Appellant
Versus
Maihar Cement - Respondent
W.A. No. 645-2012 with W.A. No. 611-2012, W.A. No. 613-2012, W.A. No. 616- 2012, W.A. No. 620-2012, W.A. No. 628-2012, W.A. No. 654-2012, W.A. No. 661- 2012, W.A. No. 809-2012, W.A. No. 810-2012, W.A. No. 815-2012
Decided On : 14-05-2013

Advocates Appeared:
For appellants :Mr. N.S. Ruprah, Advocate with Mr. Atul Choudhary, Advocate
For respondent:Mr. Aditya Adhikari, Advocate

The main legal point established in the judgment is the interpretation of the powers vested in the Railway Board under the Indian Railway Board Act, 1905, and the applicability of Section 106 of the Indian Railways Act, 1989, in relation to the circular issued by the Board.

Headnote:

Railway Board Circular - Applicability of Notification - Indian Railways Act, 1989, Section 106; Indian Railway Board Act, 1905, Sections 1, 2, 3 - The court discussed the applicability of a notification issued by the Railway Board dated 11.1.1995, which delegated full powers to the General Manager to settle time barred compensation claims for refund of overcharges. The court analyzed the provisions of the Indian Railways Act, 1989 and the Indian Railway Board Act, 1905, and interpreted the powers vested in the Railway Board to issue such circular, ultimately upholding the order passed by the Single Judge to consider the claims of the respondent for refund of time barred overcharges.

Fact of the Case:

The case involved a dispute over the applicability of a notification issued by the Railway Board regarding the settlement of time barred compensation claims for refund of overcharges. The appellant argued that the circular was contrary to the provisions of Section 106 of the Indian Railways Act, 1989, while the respondent contended that the circular was issued in exercise of the powers vested in the Railway Board under the Indian Railway Board Act, 1905.

Finding of the Court:

The court found that the Circular dated 11.1.1995, issued by the Railway Board, was within its jurisdiction and that any claim lodged during the period when the circular was in force could have been considered and decided for refund of overcharges by the appellant. The court also noted that the circular had been subsequently withdrawn by the Board.

Issues: The main issue was the interpretation of the powers vested in the Railway Board under the Indian Railway Board Act, 1905, and the applicability of Section 106 of the Indian Railways Act, 1989, in relation to the circular issued by the Board.

Ratio Decidendi: The court held that the Railway Board had the power and jurisdiction to issue the circular under the Indian Railway Board Act, 1905, and that any claim lodged during the period when the circular was in force could have been considered and decided for refund of overcharges by the appellant.

Final Decision: The appeals were found without merit and dismissed with no order as to costs.

JUDGMENT

These appeals are arising out of the common order dated 25.4.2012 passed by writ Court in W. P. No. 469/2009 and other, by which all the connected matters were decided by the order. Considering the aforesaid, we propose to decide all the matters by this common order. For the sake of convenience the facts are taken from W. A. No. 645/2012.

2. The controversy involved in all these cases is short one, in respect of applicability of a notification issued by the Railway Board dated 11.1.1995, by which the Railway Board had directed to delegate full powers to the General Manager to settle time barred compensation claims for refund of overcharges. In these cases the question involved is for consideration of the settlement of time barred compensation claim of the respondent for refund of the overcharges.

3. The sole contention raised by Shri N. S. Ruprah, learned counsel for the appellant/railways, is that the aforesaid circular is contrary to the provisions as contained in Section 106 of the Indian Railways Act, 1989 (hereinafter referred to as "the Act of 1989") and no direction could not have been issued by the Railway Board directing the appellant herein to consider time barred compensation claims for refund of overcharges. That Section 106 of the Act of 1989 bars for a claim for compensation and refund of overcharges, if it is not noticed within a period of six months from the date of delivery of goods at the destination station. That the writ Court has erred in directing the appellants for consideration of claims of the respondent for refund of time barred overcharges. He has placed reliance upon two decisions of Apex Court, one reported in (1991) 4 SCC 333 - Vinod Gurudas Raikar Vs. National Insurance Co. Ltd. and others and another judgment reported in (2008) 3 SCC 73 - Commissioner of Customs, Central Excise Noida Vs. Punjab Fibres Ltd., Noida. It is submitted by him that the order passed by the writ Court may be set aside.

4. Shri Aditya Adhikari, learned counsel for the respondent supported the order passed by the writ Court. It is submitted by him that the Circular dated 11.1.1995 was issued by the Board, in exercise of its power vested under the Indian Railway Board Act, 1905 (hereinafter referred to as "the Act of 1905"), to delegate powers to the General Manager to settle time barred compensation claims for refund of overcharges. That this order was issued by the Board in exercise of its powers vested in it under Section 3 of the Act of 1905 and the respondent were entitled to lodge their claims before the General Manager to consider and decide time barred compensation claims for refund of overcharges. That Section 106 of the Act of 1989 is applicable to the railway administration and under Section 2 (32) of the Act of 1989, the Railway Board is not included as railway administration. Shri Adhikari while placing reliance on the definition as contained in Section 2 (32) of the Act of 1989, submitted that Section 106 is applicable to the railway administration not to consider the time barred claims, while the Board is not included in the railway administration. The Railway Board has issued the aforesaid directions in exercise of its power under Section 3 of the Act of 1905. It is submitted by Shri Adhikari that learned Single Judge has rightly considered the matter and interpreted the Circular dated 11.1.1995 and has also rightly issued the directions to the appellants herein to consider the claims of the respondent. It is submitted by him that these appeals are without merit and the same maybe dismissed.

5. To appreciate rival contentions of the parties, it would be appropriate to see the factual position. The dispute is in respect of refund of overcharges which were claimed by the respondent beyond the period of six months from the date of delivery of goods at the destination station. The Board had issued a Circular on 11.1.1995, by which the General Managers were delegated the full powers by the Board to settle tim









































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