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UPPER DOAB SUGAR MILLS LTD versus SHAHDARA (DELHI) SAHARANPUR LIGHT RAILWAY COMPANY LTD.

Citation: [1963] 2 S.C.R. 333 · Decided: 23-04-1962 · Supreme Court of India · Bench: J.L. KAPUR · Disposal: Dismissed

Cited by 2 judgment(s) · see the full citation network in Lexace

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Judgment (excerpt)

·, 
2 S.C.R. 
SUPREME OOUR'.t REPORTS 
UPPER DOAB SUGAR HILLS LTD. 
ti. 
SHAHDARA (DELHI) SAHARANPUR 
LIGHT RAILWAY OOMPANY LTD. 
(J,L~ K.il>UB, K.C. DAs GUI'T.6. and 
RAGHUBAR DAYAL, JJ.) 
Rail.,,-ay Trib1mal-Oomplaint agaimt railway adminis· 
tratio,._;,,urisdiclion-lf empowered to· order refmed-lnttrpro-
tation of words "is charging" and "i• ~vying"-Tht Indian 
Railways Act, 1890 (9 of 1890) iUJ amended by the Indian 
Railways (Amendment) Act, 1967 ( 63 of 1957), •· 34, 41. 
A complaint was made by the appellant to the Railway 
Rates Tribunal against station to station rates as being 
unreasonable 
on sugarcane imposed 
by the respondent 
Rail way Co. by their rates circular No. 8 of 1953 with cll'ect 
from October 1, 
1953. The Railway company in their 
answer pointed ·out that the rates impC>S..d by the rates 
circular 8 of 1953 had long before the date of the complainant 
ceased to be in force and a new rate had come into operation 
from Feburary IO, 1960. Thereafter the complainant was 
allowed to amend the complaint. The prayers were for a 
declaration that the rates .charged were unreasonable, that a 
direction of refund of the e:1ccss collected or which may be 
collected after the date of the amendment of the complaint 
over the reasonable rates that may be futcd by the Tribunal 
and, lastly, for fixation of the rates. 
The main contentions of the respondent were that the 
Tribunal had no jurisdiction to entertain the complaint as 
regards the reasonableness of rates prior to the institution of 
the complaint and that the Tribunal had no jurisdiction to 
grant -refund. 
The Indian Railways Act underwent several amendments 
and by the amendment in December 1957, s. 41 was changed. 
As !'result of t~e change~!.. 1 of. s. 41 read_ thus: "Any com-
plaint that a railway adm1mstrat1on-(a) 1s contravening the 
provisions of•· 28, or (b) is charging for the carriage of any 
commodity between two stations a rate which is unreasonable 
or ( c} is levying any other charge which is unreasonable 
-'I 
shall hear and decide any such complaint in accordance with 
the provisions of this Chapter." 
· 
IHI --
-
VHtr Doob Sutor 
Jt111, Ltd. 
v. 
Sllal>licra ( Dtlhi) 
s.Jw-1.Uh• 
111.1. C.. L1ii. 
334 
SUPREME OOURT REPORTS [1963] 
The Tribunal held that it had no jurisdiction to enter-
tain or try the complaint as regards the rates and charges to 
prior to the Institution of the complaint and it had no 
jurisdiction to grant any refund. The appellants came up in 
appeal to the Supreme Court. 
Htld, that the words "is charging" in clause (b) and "is 
levying" in clause (c) of s. 41 (I) of the Act must be construed 
to mean "is demanding a price at the preient time for 
services to be rendered''. The Railway Rates Tribunal had 
no jurisdiction to entertain or try the complaint as regards the 
reasonableness or otherwise of rates and charges made prior 
to the institution of the complaint. 
When the Tribunal had no jurisdiction to consider the 
reasonableness or otherwise of any charges made prior to the 
institution of the complaint, it follows necessarily that it could 
have no occasion to order any refund. 
For the question of 
refund could arise only after a decision that the charges 
made were more than what was reasonable. 
Held, further, that neither expressly nor by necessary 
implication has the Railway Rates Tribunal been given any 
jurisdiction to make any order for refund. 
Soullwn 
Railway v. Tho Railu:ag llatu Trilnmal, 
A.I.R. 1955 (Madras) 676, referred to. 
After a complaint is made the Tribunal shall hear and 
decide the complaint. The complaint being that something 
is unreasonable all that the Tribunal has to decide is whether 
that thing is unreasonable or not. 
A finding that it is unreasonable docs not involve any 
co:isideration or decision of what would flow from the Jinding. 
In other words, in making the complaint the complainant can 
ask only for a declaration that the rate or charge is unreason-
able and it is only this declaratory relief which the Tribunal 
has been authorised to give. 
There is no provision that the 
Tribunal caa also give a consequential relief. 
The only other thing which the Tribuna I b authorised 
to do in connection with the complaint b to fix "such rate or 
charge as it considers reasonable." In the absence of any-
thing to indicate to the contrary it is reasonable to think that 
this fixation can only be prospective, that is, the Tribunal in 
making thiJ order fixing the rea

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