JAGJIT COTTON TEXTILE MILLS versus CHIEF COMMERCIAL SUPERINTENDENT N.R. AND ORS.

Citation: [1998] 2 S.C.R. 1065 · Decided: 21-04-1998 · Supreme Court of India · Bench: S.B. MAJMUDAR · Disposal: Dismissed
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Judgment (excerpt)

JAGJIT COTTON TEXTILE MILLS 
A 
v. 
CHIEF COMMERCIAL SUPERINTENDENT N.R. AND ORS. 
APRIL 21, 1998 
[S.B. MAJMUDAR AND M. JAGANNADHA RAO, JJ.] 
B 
'<: 
,,r 
Indian Railway Conference Association Rllles : 
Rllle 161-A Held: Not inconsistant with S.53(1) of the Railways Act, 
1890. Rllle 161-A Held: Not ultra vires of the Railways Act, 1890. Rule161- C 
A-Stallls of-R. 161-A contained in Part I (Vol.I) and the cover page of 
/RCA Rules stated that only Rllles in Part I (Vol.2) were issued under the 
authority of the Central Government-Held: R.161-A is statutory-Merely 
because R.161-A contains in Part I (Vol.I) does not lead to a contrary 
inference-Rules in Part I (Vol.I) have been issued by the Railway Board D 
under S. 29 or S. 54 of the Railways Act, 1890 delegated to ii by the Central 
;: 
Government-Govt. of India Notification Nos. 14-21, No. 81 dated 24-3-
1905-Govt. of India Notification No. TRC/1079169/// dated 8-10-1969-
Jndia Railway Board Act, 1905-Administrative law. Rule 161-A-Exclusion 
of-Held: Neither exc!Z1ded by Rules 6 nor by Rule 29 of Eastern Railway 
Coal Tari.ff Part /-Eastern Railway Coal Tari.ff Part I, Rr. 6 and 29 Rules E 
I 61-A-Wagons-Permissible can)1ing capacity of-Loading of coal beyond-
Penalty for-Recovery-From consignee-Permissibility-Held: R.161-A 
permits recovery of the renal charges ''ji-om the consignor of consignee or 
endorsee, as the case may be ". 
Rule 161-A-Providedfor recovery of the penal charges from consignees F 
for overloading of coal beyond permissible limits-But consignors not 
consignees responsible for such overloading-Validity of-Held: Rule 161-
A is not violative of Art. 14 and is neither arbitrary nor unreasonable. 
Rule 161-A-Penal charges-levy of -Under R.161-A and S.73 of 
Railways Act, 1989-Nature of-Held: No principle of "delinquency" is G 
ingrained in this levy. 
Rule 161-A-Dual purposes of R.161-A-s. 73 of Railways Act, 1989, 
stated. 
Rule 161-A-Extra rates-Charged under R. 161-A or S. 73 of the H 
1065 
1066 
SUPREl\lE COURT REPORTS 
[ 1998] 2 S.C.R. 
A Railways Act, 1989·-Quantum of-· Reasonableness--He/d. Cannot be 
challenged before 1he Supreme Courl, the appropriate jornm heing the Railway 
Rates Tribunal. 
Railways Act, 1890 : 
B 
Sections 53( /), (2), (4) and (16)--Words ·'maximum atr1Jing capacity'· 
and "normal ca,.,:ving capacity" occurring in S.53 of 1890 Act and S. 72 of 
1989 Act and words "permissible canying capacity" occurring in R. I 61-
A of /RCA Rules -Distinclion between, exp/ained--Railll'ays (Amendment) 
Act, 1854-Statements of Objects and Reasons-Railways (Punitive Charges 
C for Overloading of Wagons) Rules. 1990. 
D 
E 
F 
Sections 55(/) and 3(13)-Penal charges-Under R.161-A of /RCA 
Rules-Recove1)' fi'om consignee--lien for-Held: Railll'ays possess such a 
lien-Word "a person" in S.55( I) include consignee and words "other 
charges'' include penal charges leviable under R. I 6 I -A. Railways Act. I 989: 
Section 73-Wagon---Overloading of-Penal charges--Recove1J' a/-
From consignee-Permissibility of-Held: Penal charges liable to he recovered 
fi'om consignee, as the case may be. 
Sections 73 and 74-Railway receipt-Delivery' of-To consignee-
Ejfect of-Held: Once railway receipt is delivered lo the consignee not only 
the rights of the consignor hut also the liabilities of the consignor including 
the liability to pay penal charge under S. 7 3 pass on to the consignee. 
Sections 73 and 83-Penal charges--Col/ection of-From consignee-
Under S. 7 3-Lien for-Held: Railways possess such a lien-Words "other 
charges" occurring in S.83 include penal charges leviable under S. 7 3. 
Section 7 3-Provided for recovery of penal charges from consignees-
Held: Neither arbitrary nor unreasonable. 
G 
Sections 73 and 74--Collieries and consignees-Contract between-
FOR or FAS contract-Question left npen-Respective rights and liabilities 
of consignor and consignee dealt with on the assumption that title had 
r2111ained with the collieries even at the time of loading of coal 111to the 
wagons. 
H 
Constitution of India, 1950 : 
... 
' 
r 
J.C.T. MILLS v. CHIEF COMMER. SUPERINTENDENT 
1067 
Article 136-P/eadings-New plea-Raising of-In rejoinder- A 
Permissibility of-Consignees raised a plea in rejoinder that they had to pay 
'penal charges' on account of defective weighbridges and not on accou/1/ of 
extra load-No such plea raised either in the High Court or in the SLP-
Held: Such a plea not permilled to be raised for the first time in Supreme 
Cou
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