BALLARPUR INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE present writ petition has been filed by Messrs. Baliarpur Industries Limited a Company within the meaning of the Companies Act praying inter alia for issuance of a writ of mandamus commanding the respondents to act and proceed with law and directing the respondents not to overload and exceed permissible carrying capacity of the wagon while loading the sponsored movement of coal and not to realise any penalty imposed for overloading done by the consigner, Eastern Coalfields Limited from the petitioner and to forbear from overloading and/or exceeding permissible carrying capacity of the wagon in loading the sponsored movement of coal to the petitioner and/or to declare the Rule 161a of the Goods Tariff No. 37, Part I, Vol. I so far it authorises imposing of penalty inspite of failure of Railways to act according to rules is ultra vires and to refund the amount already paid by the petitioner as penalty and for other consequential reliefs as fully elaborated in the writ petition itself.

(2.) IT is stated that the petitioner has been carrying on business as manufacturer of paper and paper pulp and for the purpose of running the said factory, coal is an essential commodity. It is further stated, coal is an essential commodity. It is further stated that the production and supply of coal in India is being controlled by Coal India Limited, a Government of India Undertaking through its subsidiaries including Eastern Coalfields Limited and Central Coalfields Limited. Under Section 27a the Central Government may, if in its opinion it is necessary in the public interest so to do by general or special order direct the railway administration to give special facilities of preference to the transport of any such goods, or articles of goods consigned to Central Government or to the Government of any State or of such other goods or class of goods as specified in the order and Ho carry any goods or class of goods by such route or routes and at such rates as may be specified by the government.

(3.) IN exercise of the said power under Section 27a of the said indian Railways Act, the Central Government time to time issued preferential traffic schedule and giving priorities "a", "b", "c", "d" and "e" in respect of various goods. The commodity "coal" comes under the priority "c". For the preferential allotment of wagon under priority "c" in respect of sponsored consumer a procedure has been introduced by the Railways authorities under which the sponsoring authorities of the States and Central government mentioned in the preferential traffic schedule shall recommend ceiling limits of quotas to the Director of Movement (Railways)at Calcutta for movement of coal from collieries in respect of each consumer in Annexure "a" and after issue of the said sponsorship ] recommending allotment of wagons for preferential movement of coal from collieries, the sponsored consumers through their middlemen and agents complete the financial arrangement with the collieries for obtaining their consent to load. The colliery concerned makes an endorsement on the programme in Annexure "c" is filed in the office of the Director of Movement (Railways ). for preferential allotment of wagons.