JUDGMENT:

This Civil Miscellaneous Appeal is filed by the appellant - applicant aggrieved by the order dated 21.01.2010 passed in O.A.No.25 of 2001 by the Railway Claims Tribunal, Secunderabad Bench at Secunderabad.

2. The appellant - applicant is the Food Corporation of India for short "FCI"). The FCI entered into an agreement with the respondent - Railways on 17.06.1996 for carriage of goods belonging to the FCI by the Railways under credit note cum cheque system. The applicants also furnished bank guarantee bond for Rs.7,31,28,000/- for the period from 04.07.1996 to 30.09.1997. The South Central Railway vide letter dated 03.10.1997 adjusted an amount of Rs.12,55,614/- against penal interest charges and surcharge on freight on delayed realization of freight charges notes (for short “FCNs”). The applicant - Corporation addressed a letter dated 20.11.1997 denying the liability categorically stating that the CC limits available with the State Bank of India were not fully utilized by the Railways even on few days in a month and made suggestions for avoiding bunching of Full Corporate Offers (for short "FCOs") with their bank. The respondent No.2 vide letter dated 11.12.1997 informed th