SHAKTI NARAYAN Vs. UNION OF INDIA

JUDGEMENT

(1.) In this appeal, the appellant has challenged the propriety of the judgment of M. N. Roy, J., whereby the learned Judge has discharged the Rule Nisi that was issued on the application of the appellant under Art. 226 of the Constitution.

(2.) The appellant is a trader and commission agent in coal and carries on business of supply of coal and coke to different parts of India through railways in-smalls, that is, less than wagon-loads. In the writ petition, the appellant has challenged the legality of the addition (amendment) made by the Railways Board on Dec. 13, 1978 to Rule 701 (7)(ix) of the Goods Tariff No. 35, Part I,Vol. I. The addition that has been made to the said Rule is as follows:-

(3.) It appears that by virtue of amendment of Rules 1 and 2 of both Eastern Railway Tariff and South Eastern Railway Tariff all traffic in coal, coal shale, lignite etc. in wagon-loads can be loaded and despatched only from colliery sidings, coke-oven plants and washeries. It is not disputed that coal in wagon-loads cannot be booked and dispatched from way-side stations of any railway. What is permitted to be dispatched from way-side railway stations is coal-in-smalls, that is, less than wagon-loads. The freight charged for the consignment of coal in-smalls is higher than that of coal in wagon-loads dispatched from colliery s dings, coke-oven plants and washeries. Coal in-smalls is, under the relvant rules, required to be packed in gunny bags and then put into the wagon obviously for the reason that in the empty space in the wagon commodities other than coal are allowed by the Railway Administration to be loaded and dispatched. When this pattern of transportation of coal was going on, some traders dispatching coal in-smalls from the way-side railway stations insisted on the Railway Administration for allowing them to dispatch coal in-smalls after 'clubbing'. Clubbing will enable two or more traders to jointly consign their respective quantities of coal in-smalls in wagons to the full capacity of such wagons at wagon-load freight charges. The freight charged for coal in wagon-load which is less than the freight for coal in-smalls, will be shared by such traders, each having to pay freight in respect of his consignments much less than that charged for coal in-smalls and even for coal in wagon-loads. It was claimed by the traders in coal in-smalls that clubbing of coal is permitted under the said Rule 701(7)(ix) before it was amended. The Railway Administration, however, refused to book and despatch coal in smalls after clubbing on the ground that it would tantamount to consignment of coal in wagon-loads which is, as stated already, not permissible from way-side railway stations.