UNION OF INDIA Vs. ULTRA TECH CEMENT LTD

JUDGEMENT

(1.) This appeal is directed against an order and/or judgment dated 30th July, 2009 passed by the Hon'ble Single Judge in W.P. No. 357 of 2006 and W.P. No. 358 of 2006. The question involved in the said two writ petitions was as to whether a claim may be made by the railways on account of overloading a wagon only prior to the release of the goods.

(2.) The facts revealed that the Petitioner Company is one of the largest manufacturers of cement and clinker. The said company uses railway wagons to transport raw materials to its manufacturing units and to carry its products to its customers or en-route to its customers. The writ petitioners challenged the several demands made by the railways on account of overloading charges and penalty thereon for the petitioner company, whether as consignor or as consignee or as endorsee of the railway receipts, having loaded or caused to be loaded goods in railway wagons beyond the permissible carrying capacity thereof.

(3.) An incidental challenge has also been made to the quantum of penalty levied. According to the writ petitioner the penalty imposed was six times the freight rates applicable to the highest class. It is further the case of the writ petitioners that since the extent of penalty was subsequently scaled down to twice the freight rates, there is implicit admission on the part of the railways that the imposition of the penalty at the rate of six times the freight rates was irrational and unjustified.