Railway Tribunal Has Jurisdiction To Adjudicate Disputes Regarding Freight For Carriage Of Goods: Gujarat HC Refuses To Exercise Writ Jurisdiction

The Gujarat High Court has held that Railway Claims Tribunal is competent to adjudicate disputes regarding freight for carriage of goods and any dispute with regard to the same, including imposition of punitive charges.

The observation was made by Justice AS Supehia while hearing a writ petition raising a dispute with regard to freight charge demanded by the Railways from the petitioner between two stations. It was the case of the petitioner that it has paid regular freight charges to the Railway and the same were also accepted, and later on an extra freight charge was created.

On a specific query raised by the Court with regard to the remedy available to the petitioner of approaching the Claims Tribunal by filing appropriate application under Section 13 of the Railways Claims Tribunal Act, 1987, the Petitioner had cited a Division Bench order to submit that the writ petition would be maintainable.

However, upon perusal of the Division Bench judgment, the High Court noted that the issue with regard to filing of an application under Section 13 of the Act, was neither raised nor decided.

Thus, the High Court proceeded to refer Supreme Court's decision in Shree Shyam Agency Vs. Union of India and Ors where it was held that the Railway Claims Tribunal has been established for inquiring into and determining the claims against the Railway Administration for loss, destruction, damage, deterioration or non-delivery of animals or the goods entrusted to it, or the refund of fares or freight or for compensation for death or injury to the passengers as a result of railway accidents or untoward incidents etc.

The bench also referred to Section 36 of the Act which states that complaints may be lodged against railway administration if it is charging for the carriage of any commodity between two stations a rate which is unreasonable.

In this background the High Court refused to quash the demand notices issued by the Senior Divisional Commercial Manager to the tune of Rs. 51 lacs and relegated the parties to avail alternate remedy.

"In the present case, there is a dispute with regard to the freight paid by the present petitioner and determined by the Railways. The case of the petitioner will fall under sub-section (b) of Section 13, which pertains to in respect of claims for refund of fairs or part thereof or for refund of any "freight" paid in respect of goods entrusted to Railway Administration to be carried by the Railways."