Union of India vs Rajasthan State Mines and Minerals Limited

Atul Kumar Jain, J.—In all these four appeals, disputed questions to be considered by this court are same and so by consent of both the parties in all these four appeals, and looking to the convenience of this court also, these appeals are being hereby decided by this common order.

Civil Misc. Appeal No. 4833/2012 relates to judgment dated 04.09.2012 of Railway Claims Tribunal, Jaipur in O.A. III/19/2009 and amount involved in this Civil Misc. Appeal is refund of Rs. 10,86,048/-.

S.B. Civil Misc. Appeal No. 4835/2012 relates to judgment dated 04.09.2012 of Railway Claims Tribunal, Jaipur in O.A. III/23/2009 and amount involved in this Civil Misc. Appeal is refund of Rs. 11,31,312/-.

S.B. Civil Misc. Appeal No. 4874/2012 relates to judgment dated 05.09.2012 of Railway Claims Tribunal, Jaipur in O.A. III/21/2009 amount involved in this Civil Misc. Appeal is refund of Rs. 11,28,145/-.

S.B. Civil Misc. Appeal No. 4924/2012 relates to judgment dated 26.09.2012 of Railway Claims Tribunal, Jaipur in O.A. III/22/2009 amount involved in this Civil Misc. Appeal is refund of Rs. 9,79,547/-.

Claim before the RCT, Jaipur was filed in all these four matters by M/s. Rajasthan State Mines and Minerals Limited Company against Union of India and North Western Railway Jaipur under Section 16 of Railway Claims Tribunal Act 1987 in respect of claim for compensation as freight refund due to them as mentioned in the earlier paragraphs of this order.

Railway Claims Tribunal by the impugned award has allowed freight refund of total amount claimed by the respondent along with the 6% simple annual interest from the date of filing claim application to the date of its realization. It has also been mentioned in the impugned order that if within 60 days payment is not made by the appellant then the simple interest @ 9% per annum will be payable from the date of the award to the date of the realization.

Appellant, Union of India through General Manager North Western Railway, Jaipur has filed these four appeals against the impugned orders and it has been argued by the appellant that the Railway Claims Tribunal by no jurisdiction to try the cases of such nature and it has also been argued in the alternative that before completion of the benchmark month wise as advised by General Railway the Railway Claims Tribunal was not authorized to order for refund of freight as claimed by the respondent in these matters.

I have heard arguments of both the parties in all these four appeals. Story of respondent in short is to the effect that the respondent company approached to the appellants under the scheme of freight discount on entire traffic loaded in the notified Traditional Empty Flow Directions which came into effect from 01.07.2008. The appellants issued letter on 25.08.2008 granting freight discount for a period from August, 2008 to March, 2009 as per the scheme. It has been alleged by the respondent that 30% freight discount for loading loose Rock Phosphate was not given by the appellants. Appellants claimed that the respondents did not achieve the benchmark fixed for the month and so they were eligible for discount only from the next rake booked after achieving benchmark.

Respondent had deposited full freight in respect of the disputed consignment with liberty to claim 30% discount subsequently and in support they had attached a copy of the R.R. also with each claim. On the other hand, appellant argued in the court below that the respondents were guilty of not achieving the benchmark and the benchmark was completed only in the next rake so before hand the respondent was not entitled to get any refund of 30% freight amount.

Benchmark refers to freight earning in the corresponding period (month, order or season) of the previous year suitably adjusted for changes in freight rate. The lower court was of the view that the original circular No. 25/2008 referred in the arguments of the appellant did not impose the condition of booking next rake after achieving benchmark of which the benefit of concession had been denied to the respondent. It is an admitted position that as per the scheme, the main objective of the scheme is to generate additional traffic from any railway owned goods shed siding for loading in inter zonal Traditional Empty Flow Directions. Freight discount of 30% of NTR is admissible on entire traffic loaded in the notified Traditional Empty Flow Directions.

In the circumstances of the case, the Railway Claims Tribunal has awarded refund of 30% of freight with interest to the respondent in all the four claims mentioned hereinbefore.

So far as, jurisdiction is concerned this court has perused Section 13(1)(b) of Railway Claims Tribunal Act 1987 and it reads as follows:-

"The Claims Tribunal shall exercise on and from the appointed day, also jurisdiction, powers and authority which were exercisable immediately before that day by any Civil Court or Claims Commissioner appointed under the provisions of the Railway Act in respect of claims for refund of fares of part thereof or for refund of another freight paid in respect of animals or goods entrusted to a Railway Administration to be carried by railway." 14. Thus, Railway Claims Tribunal was certainly having jurisdiction to decide the controversy raised by the respondent before it and also looking to the letter No. C/423/RS MMI dated 25.08.2008 of Western Railway sent to the respondent in the light of para 4.4 of Empty Flow Direction Incentive Scheme. It can be said that the impugned order passed by RCT, Jaipur in all these four matters suffer from no legal or factual infirmity and they are passed well within its jurisdiction by the Railway Claims Tribunal, Jaipur. The interest awarded by the RCT, Jaipur to the respondent, also does not appear exorbitant and so that para of the order also does not deserve any interference by this court in these appeals.

Hence, all these four appeals deserves dismissal which are, hereby, dismissed and all the four impugned orders of RCT, Jaipur are upheld as such. All the four stay petitions also stand disposed of accordingly.

Four copies of this order be sent to the Railway Claims Tribunal, Jaipur along with record, if any, immediately so as to be incorporated in the concerned file therein.