GUJARAT AMBUJA CEMENTS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition under Art. 226 of the Constitution of India is filed by Gujarat Ambuja Cements Ltd., a Company incorporated under the Indian Companies Act, against Union of India, the Railway Board and the various officers of the Western Railway. In paragraph 95 of the petition, the petitioner has prayed for the following main relief :

(2.) M/s. Ambuja Cements (P) Ltd., wanted to establish a cement plant at Mahuva in Saurashtra. It, therefore, applied to the concerned Ministries for the industrial licence. As a part of the process for granting the industrial licence, the 'no objection' or the approval of the Ministry of Railways was needed, and the Ministry of Railways granted such 'no objection' or the approval. Thereafter, M/s. Ambuja Cements (P) Ltd. was converted into a Public Limited Company, and the site of the proposed cement plant was changed from Mahuva to Kodinar in Saurashtra. Necessary applications, were, therefore, made to the concerned Ministries for effecting the change, both as regards the name of the licensee as also as regards the place where the cement plant was to be established. Those applications were granted, and once again, as a part of the process for granting the industrial licence to the petitioner, the Ministry of Railways granted the necessary 'no objection' or the approval. The petitioner established a cement factory at Kodinar, at a huge cost, and went into production sometime in 1986. For manufacturing cement, the petitioner needs huge quantities of coal, which it purchases from Bilaspur Collieries and other Collieries. The coal is transhipped by railway wagons to the site of the factory of the petitioner at Kodinar. The manufactured product of the petitioner, i.e., the cement is despatched to the various destinations by railway wagons.

(3.) Both, the inward traffic of coal, and the outward traffic of cement, usually passes through Sabamati Railway Station. En route Sabarmati -Kodinar, there is Khijadiya Railway Station. Between Sabarmati and Khijadiya, there is single route. However, from Khijadiya, onwards, for going to Kodinar, there are three routes; (i) Khijadiya - Jetalsar - Junagadh - Veraval - Talala - Prachi Road - Kodinar. This is the longest distance route (for short to be referred to as 'the longest route'). (ii) Khijadiya - Jetalsar - Junagadh - Visavadar - Talala - Prachi Road - Kodinar. This is the medium distance route (for short to be referred to as 'the medium route'), and (iii) Khijadiya - Visavadar - Talala - Prachi Road - Kodinar. This is the shortest distance route (for short to be referred to as 'the shortest route'). As said in the petition, the distance between Sabarmati and Kodinar on the longest route is 213 Kms.; that on the medium route is 196 Kms.; and that on the shortest route is 139 Kms. Thus, the difference of distance between the longest route, and the shortest route is 74 Kms. In the affidavit-in-reply, .on behalf of the respondents, at some places the difference between the longest route and the shortest route is said to be 73 Kms. Be that as it may, the difference between the longest route and the shortest route is quite sizeable. Upto 9/01/1987, the Railways charged the petitioner freight on the shortest and the cheapest route basis irrespective of the route on which the goods traffic of the petitioner was moved. This was done in conformity with Rule 125(l)(b) of the Goods Tariff No. 39, Part-1. Vol. I.. On 12/01/1987, the Station Superintendent, Kodinar Railway Station, passed the order Annexure "E" to the petition, which reads as follows :