LAWS(ALL)-2010-4-22

DEEPTIMAN LOGISTICS PVT LTD Vs. UNION OF INDIA

Decided On April 12, 2010
DEEPTIMAN LOGISTICS PVT. LTD. Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) Heard Sri Devol Banerjee, learned Senior Advocate, assisted by Sri Ashish Chakravarti and Sri Rahul Agarwal for the petitioners and Sri Vivek Singh, learned Counsel for the respondents.

(2.) Brief facts of the case necessary to be noted for deciding the writ petition are; the petitioner No. 1 is a registered company under the Companies Act, 1956 registered office of which is at Allahabad. The Government of India, Railway Board issued a scheme, namely, Wagon Investment Scheme (WIS) vide Circular No. 40 of 2005 dated 20th November, 2005 with an object to encourage public private partnership in procurement of wagons to meet with the anticipated incremental freight traffic in the coming years. Customers investing in Railway wagons were to be assured of supply of a guaranteed number of rakes every month based on the number of rakes procured and the turn round of the type of wagons with 10% concession in freight. Certain other benefits were contemplated to the investors. The said circular was issued to different railway zones including South East Central Railway, Bilaspur. The said scheme has been modified from time to time. The petitioners interested in availing of the benefit made two applications to the Chief Commercial Manager, South East Central Railway, Bilaspur dated 7th June, 2006 expressing its interest for inducting 4 Box-N Type wagons. The application was approved by the Railway Board vide its letter dated 22nd December, 2006. The said approval was granted in reference to South East Central Railway, Bilaspur's letter dated 28th September, 2006 by which the petitioners' application was forwarded for consideration and approval. The loading stations and unloading stations were also approved, which were within the South East Central Railway. An agreement dated 28th May, 2007 was executed at Bilaspur between the Indian Railway and the petitioners providing for various terms and conditions. The petitioners made an application to South East Central Railway, Bilaspur praying for extension of further period of one year for supply of wagons. The said application was allowed and extension of one year beyond 31st December, 2007 was granted by Chief Commercial Manager, South East Central Railway. The petitioners again submitted a request for extension for further period of one year, which was allowed and period was extended up to 21st December, 2009. The petitioners also made a request for changing the loading station. The petitioners again wrote for changing of the loading station to the South East Central Railway. The petitioners again submitted letter dated 11th December, 2009 to the Chief Commercial Manager, South East Central Railway, Bilaspur praying for extending the delivery period of further one year i.e., up to 31st December, 2010. In response to the said letter, a letter dated 28th January, 2010 was received by the petitioners at his head office at Allahabad stating therein that for extension of time limit, the petitioners may approach the Railway Board along with the details of proof of financial commitment for procurement of rakes under the said scheme. In view of the aforesaid background of facts, the petitioners have filed the present writ petition praying for following relief:

(3.) Learned Counsel for the petitioners in support of the writ petition contended that respondent No. 3 (Chief Commercial Manager, South East Central Railway, Bilaspur) on earlier occasion although has granted extension of period for supply of wagons twice but on the request made by the petitioners for further extension of period now the petitioners have been directed to approach the Railway Board. It is submitted that extension ought to have been granted by respondent No. 3 himself. In the alternative learned Counsel for the petitioners contended that Railway Board (respondent No. 2) may be directed to consider the petitioners' request for extension of period for supply of wagons as well as for change of the loading station, which have already been prayed for with respondent No. 3.