UNION OF INDIA Vs. RASHTRIYA ISPAT NIGAM LTD

JUDGEMENT

(1.) The Union of India represented by its General Manager, South Eastern Railway, Calcutta assails the order of the Railway Claims Tribunal, Secunderabad dated 27-7-1998 made in O.A.No. 248 of 1990, whereby and whereunder the learned Tribunal allowed the claim of the respondent herein directing the appellant to pay a sum of Rs. 6,40,882/- with interest at 12% per annum being the excess freight amount or overcharges collected by the appellant from the respondent.

(2.) The case of the respondent hereinbefore the learned Tribunal in a nutshell is that between 1986 and 1988, Rashtriya Ispat Nigam Limited, Visakhapatnam (hereinafter called 'Visakhapatnam Steel'), booked PVC Insulated Electrical Armoured Conductors from various destinations to its siding at Visakhapatnam duly paying the requisite freight charges at the place of booking. When the goods reached the destination, the same were not delivered to Visakhapatnam Steel on the ground that the freight charges were not correctly paid. Therefore Visakhapatnam Steel paid the freight charges as demanded by the goods clerk and got the goods released.

(3.) At the relevant time, the applicable freight was governed by I RCA goods tariff Part-l, Vol. II at page 113. It appears insofar as the tariff applicable to PVC Insulated Armoured Conductors is concerned a printing mistake occurred, according to which the goods clerk collected the higher freight charges than what was actually prescribed. Be that as it is, the Railways issued a circular dated 04-8-1987 ordering the correction. If the same is taken into consideration, the Railways collected more freight than prescribed. Therefore, Visakhapatnam Steel issued notices under Section 78-B of Indian Railways Act, 1890 (hereinafter called '1890 Act') on 20-1-1988, 24-3-1988, 07-7-1989 and 28-7-1989. The Railways sent reply repudiating the claim on the ground that the claim was made in contravention of Section 78-B of 1890 Act and beyond the period of limitation of three years. Hence, Visakhapatnam Steel filed the application before the learned Tribunal presumably under Section 13 of the Railway Claims Tribunal Act, 1987 (for short, the Act).