Case: Union Of India Vs. West Coast Paper Mills Ltd

even in a dispute relating to the matters set out in Section 41 (1) (a), (b) and (c), where the Central Government has fixed by general or special order maximum and minimum range of rates for the whole or any part of a railway the complaint that the railway administration has contravened any order issued by the Central Government may be determined by the Central Government and not by the Tribunal. Similarly, the Central Government has and the Tribunal has not the power to classify or reclassify any commodity and to increase or reduce the level of class rates and other charges. Subject to these restrictions, the Tribunal has the power to determine whether the Railway Administration has acted in contravention of the provisions of Section 28, i. e., it has granted any undue or unreasonable preference or advantage to, or in favour of any particular person, or shown any undue or unreasonable prejudice or disadvantage to any person or railway administration or any particular description of traffic, and was charging for the carriage of any commodity between two stations a rate which was unreasonable or was levying any other charge which was unreasonable.11. In the present case the maximum and minimum range of rates have been fixed by the Central Government. A complaint that the railway administration has acted in contravention of the order issued by the Central Government may be determined by the Central Government and not by the Tribunal. Again the Central Government alone has the power to classify or reclassify any commodity or to increase or reduce the level of class rates and other charges. The Tribunal accepted these limitations upon the exercise of its powers. The Tribunal however found that the charge made by the railway administration under the order of the Railway Board levying tariff at the standard rates but on the footing that for each kilometer the goods are transported the charge will be levied at three times the standard rate is unreasonable and discriminatory. The finding proceeds upon appreciation of evidence which has been examined in great detail. The finding of the Tribunal cannot be challenged in this appeal with special leave under Art. 136 of the Constitution, and no attempt has been made to challenge before us that finding.12. On behalf of the Union it was urged by the Solicitor-General that the impugned rates were station to station rates "and relying upon certain rules framed by the Railway Board, counsel contended that in respect of station-to-station rates the Tribunal had no jurisdiction to give relief. Rule 63 of Goods Tariff No. 28 in force from August 1, 1950, provided for the station-to-station rates as one of the types of rates chargeable. Cl. (7) provided that a "station-to-station rate" is a special rate for the total distance between two specific points (stations only): and cl. (8) provided that:"Station-to-station rates are as follows-(i) those between two stations on the same Railway, that is local station-to-station rates;(ii) those between a station on one railway and a station on another railway."Similarly in Rule 67 of Goods Tariff No. 29 in force from June 1, 1954, similar definition of station-to-station rates was given. In Rule 67 of Goods Tariff No. 29 effective from October 1, 1958, rates were divided into two types - (i) Class rates; and (ii) station-to-station rates. By cl (3) it was provided:"(i) Station-to-station rate means a special reduced rate applicable to a specific commodity booked from one specified station to another specified station.(ii) Station-to-station rates may be quoted from and to stations on the same railway or from a station on one railway to a station on another railway."These rules have, in our judgment, no relevance in determining the matter in dispute in this appeal, for in S. 41 (1) (b) the expression used is not "station-to-station rates", but a rate between two stations which is unreasonable. There is nothing in the rules which even indirectly affects the jurisdiction of the Tribunal to determine whether the rates for carriage of certain specified commodities between two stations are unreasonable. The Tribunal has expressly observed that the relief granted to the Company must be within the range of rates prescribed by the Central Government. The Tribunal has expressly observed that it is incompetent to grant relief which might even indirectly cancel the order of the Central Government under Section 10 (1), for, it would amount to changing the range and level of class rates applicable to the branch line. But if the Tribunal declared that only certain rates for specific commodities, between specified pairs of stations, are unreasonable, the level of class rates is not affected. The Tribunal is invested with the authority subject to the limitations contained in S. 29 (3) and S. 42 to entertain a complaint and to give relief in respect of rates which are found to be unreasonable between two stations. The complaint made by the Company did not seek intervention of the Tribunal in matters which may be raised only for decision to the Central Government by S. 29 and S. 42 of the Act, and the Tribunal has not given any relief in contravention of those provisions. The Tribunal has merely declared that the chargeable rate of freight determined by multiplying by three the distance over which the goods are transported for specific commodities is in contravention of S. 28 of the Indian Railways Act, 1890.13. We do not see force in the opinion expressed by Mr. V. R. Rangaswami and even if the Tribunal holds that the rates between two stations in respect of a specific commodity are unreasonable, it cannot make a declaration to that effect. Such a view would deprive the Tribunal of its power to give formal shape to its view. We are not called upon to decide whether the Tribunal has power to fix rates in substitution of rates declared unreasonable in exercise of the jurisdiction under S. 41 (1) (b), because no such rates are fixed by order of the Tribunal.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]11. In the present case the maximum and minimum range of rates have been fixed by the Central Government. A complaint that the railway administration has acted in contravention of the order issued by the Central Government may be determined by the Central Government and not by the Tribunal. Again the Central Government alone has the power to classify or reclassify any commodity or to increase or reduce the level of class rates and other charges. The Tribunal accepted these limitations upon the exercise of its powers. The Tribunal however found that the charge made by the railway administration under the order of the Railway Board levying tariff at the standard rates but on the footing that for each kilometer the goods are transported the charge will be levied at three times the standard rate is unreasonable and discriminatory. The finding proceeds upon appreciation of evidence which has been examined in great detail. The finding of the Tribunal cannot be challenged in this appeal with special leave under Art. 136 of the Constitution, and no attempt has been made to challenge before us thatrules have, in our judgment, no relevance in determining the matter in dispute in this appeal, for in S. 41 (1) (b) the expression used is notrates", but a rate between two stations which is unreasonable. There is nothing in the rules which even indirectly affects the jurisdiction of the Tribunal to determine whether the rates for carriage of certain specified commodities between two stations are unreasonable. The Tribunal has expressly observed that the relief granted to the Company must be within the range of rates prescribed by the Central Government. The Tribunal has expressly observed that it is incompetent to grant relief which might even indirectly cancel the order of the Central Government under Section 10 (1), for, it would amount to changing the range and level of class rates applicable to the branch line. But if the Tribunal declared that only certain rates for specific commodities, between specified pairs of stations, are unreasonable, the level of class rates is not affected. The Tribunal is invested with the authority subject to the limitations contained in S. 29 (3) and S. 42 to entertain a complaint and to give relief in respect of rates which are found to be unreasonable between two stations. The complaint made by the Company did not seek intervention of the Tribunal in matters which may be raised only for decision to the Central Government by S. 29 and S. 42 of the Act, and the Tribunal has not given any relief in contravention of those provisions. The Tribunal has merely declared that the chargeable rate of freight determined by multiplying by three the distance over which the goods are transported for specific commodities is in contravention of S. 28 of the Indian Railways Act, 1890.13. We do not see force in the opinion expressed by Mr. V. R. Rangaswami and even if the Tribunal holds that the rates between two stations in respect of a specific commodity are unreasonable, it cannot make a declaration to that effect. Such a view would deprive the Tribunal of its power to give formal shape to its view. We are not called upon to decide whether the Tribunal has power to fix rates in substitution of rates declared unreasonable in exercise of the jurisdiction under S. 41 (1) (b), because no such rates are fixed by order of the Tribunal.