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Civil · Reportable judgment

Union of India vs M/s Kamakhya Transport Pvt. Ltd. Etc. Etc.

Court
Supreme Court of India
Date
5 June 2025
Case No.
Civil Appeal No(s). 7376-7379 of 2025
Result
Allowed
Bench
Sanjay Karol, Prashant Kumar Mishra
Citation
[2025] 7 S.C.R. 346 : 2025 INSC 805
Acts & Sections
Railways Act, 1989 Railway Claims Tribunal Act, 1987
Supreme Court Reports [2025] 7 S.C.R. 346 : 2025 INSC 805
Issue for consideration
Whether the Courts below had rightly held that the Railway authorities could not have raised the demand notice after the delivery of goods.
Headnote

Railways Act, 1989 – s.66 – Power to require statement relating to the description of goods – Appellant raised demand notices alleging misdeclaration of goods, for consignments sent through the Railways – Respondents paid the demands raised but sought refund of the amount paid contending that the demand notices issued after the delivery of the goods were illegal – Claim allowed by Railway Tribunal – Appeals dismissed by High Court – Interference with:

Held: A consignee/owner of goods/person having charge of goods who has brought goods for the purpose of carriage has to give the Railway authorities a written statement regarding the description of the goods, to enable them to charge the appropriate rate of carriage – Under sub-sec.(4), if the statement is found to be materially false, the Railway authority is empowered to charge the goods at the required rate – No reference is made to the stage at which such a charge can be made, i.e., either before or after delivery – Thus, the legislative intent is to permit levy of charge under this Section, at either stage and not at a specific one – High Court erred in holding that penal charges can only be applied prior to the delivery of goods – Impugned order set aside – Railway Claims Tribunal Act, 1987. [Paras 14, 18, 20]

Keywords: Description of goods · Misdeclaration of goods · Consignments sent through the Railways · Demand notices · Demand notices issued after the delivery of the goods · Goods for carriage · Appropriate rate of carriage · Levy of charge · Stage of levy of charge · Before or after delivery · Railway authorities · Railway Claims Tribunal · Refund · Punitive charges after delivery of goods · Consignee · Owner of goods · Person having charge of goods · Penal charges · Prior to the delivery of goods

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Divya Pandey. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment Sanjay Karol, J. Leave granted. 2. The present appeals arise from the final judgment and order dated 20th December 2021 passed by the Gauhati High Court in MFA Nos.80 of 2016, 57 of 2016, 29 of 2017 and 28 of 2017 respectively, whereby the order dated 19th January 2016 of the Railway Claims Tribunal, Guwahati Bench in OA Nos.229/12, 184/12, 228/12 and 185/2012 respectively came to be affirmed. Brief facts 3. The brief facts giving rise to this appeal are that the Appellant raised demand notices of varied amounts dated 13th October 2011, 7th April 2012, 29th October 2011, as also
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