THE HON’BLE Ms. JUSTICE G. ROHINI WRIT PETITION No.13415 OF 2010 AND WRIT PETITION No.12359 OF 2010 Dated: 09.07.2010 In W.P.No.13415 of 2010: Between : M/s. Ashirwad Steels & Industries Limited, Sponge iron Division (AP), regd. under Companies Act H/o. at kolkatta and branch at Veliminedu Village Chityala mandal and is rep. by Sri MMP.Shukla … Petitioner And 1. General Manager, South Central Railway, Secunderabad., and 2 others. … Respondents A N D In W.P.No.12359 of 2010: Between : M/s. Kumar’s Metallurgical Corporation Limited, Vattimurthy Village, Chityala mandal, rep. By Its Authorized signatory N. Chandrasekharrao … Petitioner And 1. The Senior Divisional Commercial Manager, O/o. Divisional Railway Manager, Commercial br. South Central Railways, Guntur Division, Guntur., and 2 others. … Respondents THE HON’BLE Ms. JUSTICE G. ROHINI WRIT PETITION No.13415 OF 2010 AND WRIT PETITION No.12359 OF 2010 COMMON ORDER : The petitioners in these two writ petitions who are the manufacturers of Sponge Iron, procure coal from M/s. Singareni Collieries Company Limited, Kothagudem, from its mines. The coal is transported by the Singareni Collieries Company Limited in railway wagons supplied by the South Central Railways on payment of freight charges. The delivery of the coal so transported is effected at Railway siding at Chityala from where the petitioners transport the material to their factory premises. These two writ petitions are filed seeking a declaration that the letter dated 12.04.2010 addressed by the Senior Divisional Commercial Manager, South Central Railway, Vijayawada Division seeking to recover a sum of Rs.10,20,000/- and Rs.5,10,000/- respectively from the petitioners towards the loss incurred by the Railways alleging that lot of earth with ballast was scooped away by the petitioners or their agency resulting in suspending of Road 3 due to safety reasons are arbitrary and illegal. It is contended by the petitioners that the impugned demand made by the Railways is arbitrary and illegal apart from being baseless. It is pleaded that at no point of time there was any complaint against the petitioner companies as to causing any damage to the properties of the Railways and the allegation that the Railways was compelled to suspend Road 3 on account of the activities of the petitioners was unfounded and without any basis. Though the petitioners addressed letters denying the allegation that while unloading the coal consignment the earth with ballast was scooped away by the petitioners, the respondents failed to consider and on the other hand the respondents started detaining the railway wagons containing the load of coal to be delivered to the petitioner companies. Aggrieved by the said action of the respondents, these two writ petitions have been filed. I have heard the learned counsel for both the parties and perused the material available on record including the counter- affidavits filed on behalf of the respondents. It is contended by the learned counsel for the petitioners that the impugned action of the respondents in taking unilateral decision as to the alleged liability of the petitioners without giving an opportunity to the petitioners to make their representation against the proposed action, particularly without holding the necessary enquiry including joint inspection is arbitrary and illegal. In the counter-affidavits filed on behalf of the respondents, except stating that on several occasions unloading parties had scooped away the material and the track was made unfit for further movement of trains, no specific averments have been made against the petitioners making them accountable to the loss suffered by the Railways. Be that as it may, the impugned letters calling upon the petitioners to pay the amounts specified therein towards the alleged loss suffered by the Railways were admittedly not preceded by any notice giving an opportunity to the petitioners to make their representations against the impugned demand. In the circumstances, on the face of it, the impugned demand is in violation of the principles of natural justice and therefore the same is liable to be set aside on that ground alone. Accordingly, the impugned orders dated 12.4.2010 are hereby set aside and the Writ Petitions are disposed of leaving it open to the respondents to pass appropriate orders afresh after giving an opportunity to the petitioners to meet the allegation that the Railways suffered loss due to the activities of the petitioners while lifting up the coal consignment at Chityala. No costs. _____________ G. ROHINI, J. Dt. 09.07.2010 Note;- CC in 3 days. (B/O) gbs