SOUTHERN RAILWAYS Vs. RAILWAY RATES TRIBUNAL

JUDGEMENT

(1.) Both these petitions filed under Article 226 of the Constitution are directed against the Railway Rates Tribunal in respect of their proceedings on a complaint filed by a firm called the Engineering Supplies Co., Bombay, who carry on business in cast iron pipes, among other things, against the Southern Railways and the Central Railways under Sections 28 and 41(1), Railways Act 1890.

(2.) The principal from and steel manufacturing centers of India are Bhadravati in Mysore and Bisco, Burnpur and Tatanagar in Bihar and Bengal. Bisco is the place where the factory of Bengal Iron and Steel Company is situated. ' The railways had been quoting special rates for the transport of cast iron pipes to various cities and towns in the country for over 20 years. From 15-10-1949, the full tariff rate for east iron pipes from Bhadravati to Bombay was Re. 1-1.5-1, but the special rate being charged was Re. l-3-6. The full tariff rate from Bisco to Bombay was Rs. 33- 8 from 15-10-1949, but the special rate being charged was Re. 1-6-10. This rate was, however, cancelled from 1-4-1952. The complainant who imports cast iron pipes from Bhadravati to Bombay and other stations complained to the railway that there was an undue preference shown for Bisco, which was in contravention of Section 28, Railways Act. The firm also applied to the railways to quote a special station to station rate from Bhadravati to Kalyan and Ambarnath, intermediate stations between Bhadravati and Bombay. As the firm got no relief from the railways, they filed the complaint. Several reliefs wove claimed by the complainant firm, namely, that reduced station to station rates may be fixed for the carriage of cast iron pipes from Bhadravati to Bombay on the basis of the same percentage reduction or maund mile return yielded by the Bisco Bombay rate, and from Bhadravati to Badlapur, Ambarnath and Kalyan on an appropriate and consequential basis, that it should be declared that so long as the special rate from Bisco to Bombay and from Bhadravati to Bombay, Poona and oilier stations remained in force, that is, upto 14- 1952, the refusal to quote new station to station rates and the rate charged to the complainant was unreasonable and contravened Section 28, Railways Act, and that the excess sum collected from the complainant by the railways for traffic from Bhadravati to Bombay from 15-10-1949 and from Bhadravati to Ambarnath and Kalyan from January 1951 may be refunded, and that it should be declared that the cancellation of the special rate from Bhadravati to Poona for cast iron pipes also and in consequence the charging of the rate of Re. 1-9-7 for cast iron pipes as against Re. 1-1-11 for all other articles of Iron and Steel. Division B, contravened R. 28 of the Act, and that the said cancellation be directed to be withdrawn and proper station to station rates from Bhadravati to Poona, Badlapur, Ambarnath and Kalyan should be fixed. The railways pleaded that the complainant, was not entitled to any of the reliefs sought, Another firm, Messrs. Hindustan Materials Ltd., Bombay, intervened in the proceedings on the side of the complainant, and prayed for certain reliefs in respect of the rate from Bhadravati to Bombay, from Bhadravati to Kalyan, and Ambarnath, and from Bhadravati to Poona. Several issues were framed on the pleadings. The complaint was heard fully by the Railway Rates Tribunal. Of the three members of the Tribunal, the President and one of the members, Mr. Roy, held that the only relief the complainant was entitled to was a declaration that from January 1951 the station to station rates for the transport of cast iron pipes in wagon loads ex Bhadravati to Ambarnath and Kalyan should have been the then prevailing station to station rate ex. bhadravati to Bombay plus the usual re- booking charges to Ambarnath and Kalyan respectively at the prevailing tariff rate, and that it was unreasonable on the part of the respondents to have refused to quote that rate, and to an order that station to station rates for cast iron pipes ex. Bhadravati to Ambarnath and Kalyan from the date of the filing of the complaint should be quoted on the same basis. The other member, Mr. Subba Rao was of opinion that the special rate from Bhadravati to Bombay of Re. 1-3-6 per maund was proper and reasonable and that it should not be cancelled, that the rate from Bhadravati to Poona which had been cancelled should be restored, that the special rate from Bhadravati to Kalyan and Ambarnath should be restored and this should not be higher than the Bhadravati Bombay special rate, and that the complainant was entitled to a refund of the amount paid by them for the transport of cast iron pipes from Bhadravati to Kalyan and Ambarnath in excess of the former special rate. The order of the Tribunal, in accordance with the view of the majority, ran as follows:

(3.) In W. P. No. 961 of 1953 filed by the Southern Railways and the Central Railways, they seek to have the said order of the Tribunal quashed in so far as they granted a declaration from January 1951 and directed the charge-of rates fixed by them from a period prior to 9-10-1953, that is, the date of the order. In W. P. No. 1007 of 1953, the complainant prays that the order of the Tribunal may be quashed and set aside (1) in so far as the Tribunal rejected the claim for excess paid, and (2) in so far as the tribunal rejected the applicant's claim that the rate of Re, 1-3-6, for Bhadravati to Bombay was unreasonable and contravened Section 28, Railways Act, and in so far as the Tribunal ordered that the future station to station rate for cast iron pipes ex. Bhadravati to Ambarnath and Kalyan should be quoted from the date of the filing of the complaint. They also sought for appropriate directions or orders of this Court (a) to make an order of refund of excess freight in accordance with the decision of the Tribunal, (b) to declare that the rate of Re. 1-3-6 for cast iron pipes from Bhadravati to Bombay was unreasonable and violated the provisions of Section 28, Railways Act, (c) to make an order for new station to station rate to be quoted , by the railways ex. Bhadravati to Ambarnath and Kalyan from January 1951, and (d) to fix the station to station rates specifically in Rupees and annas and pies.