VIKLAID COAL MERCHANT, PATIALA, ETC. ETC. versus UNION OF INDIA & ORS.

Citation: [1984] 1 S.C.R. 657 · Decided: 28-10-1983 · Supreme Court of India · Bench: D.A. DESAI · Disposal: Dismissed

Cited by 4 judgment(s) · cites 1 · see the full citation network in Lexace

Judgment (excerpt)

•. 
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657 
VIKLAI) COAL MERCHANT, PATIALA, ETC. ETC. 
v. 
UNION OF INDIA & ORS. 
October 28, 1983. 
[D.A. DesA1 ANDO. CmNNAPPA REDDY, JJ.] 
Conslit1ltion of India Art. 19(1) (g)-Freedom to carry on trade or 
busines!-To exanzine whether restriction imposed 1easonable-:-Court to find out 
trade affected and keep in· view direct impact of r'estriction on trade and not 
ancilfary or indirect "e.ffec't. 
Indian Railways Act, 1890-Sec. 27A-Interpretation of-rVhether v;W/ativc 
of Art. 19(/)(g) of Con~titurion. ·preferential Traffic Schedule laying dolt'n priorities 
for movement of drfferent J:Oods issued by the Ministry OJ Railways under 
sec. 27A-Validi/y of-Wheth~r ultra Vire~ sec. 27A-Whether ultra Vires Arts. 14 
and 19(1) (g) of tire Conslitulion. · 
· 
• 
Indian Railways Act, 1890, section 28-lnterpretation of-Ministry of 
Railwa)'S order dated April _I, 1972-U?/iether violative of sec. 28 and A1 t. 19( I) (g) 
of th~ .Constitution. 
Section 27 of the Indian Railways Act, 1890 cast a duty on the railway 
administration to arrange for -receiving and forwarding traffic without 1:1nreason· 
able delay and without partiality; Sectiqn 28 prohibited the railway 
administration from giving undue or u.nreasonable preference or advantage to 
ally particular person or railw~·adrninistration or any particular description of 
traffic. Section 27A was inserted in the Act after 1950 to give power to the_ 
Central Governrr.ent to issue directions for giving speci3.1 facilities or preferen-
ti3.1 treatment in transport of goods or class of goods consigned to the Central 
Government or the Government of any State-or of such other goods or clasS of 
goods as may b~ specified in the order. 
The GovCtnment of India, Ministry of Railways issued aa order dated 
April 1, 1972 containing its decision to add an abbreviation 'GX' below the 
abbreviation 'G' in the list of abbreviations at page 14, Chapter VI of the IRCA 
Alphabetical list of Railway·Stations in India and asking the railway administ-
ration to decide and notify the-names of stations to which this new provisions 
would apply. Putting abbreviation 'GX' against a station meant that the station 
was not open for outward booking of coa1, coal shale etc. in wagon loads. 
Pursuant to this order; the abbreviation •a·X• was appended to all· way-side 
stations in the coat.belt. Thereafter- Qovernment of India, ·Ministry of Railways 
. by its order dB.ted April 27, 1972 revised ru.les J and 2 of the Eastern Railway 
Coal Traffic Part L T\1.,;; r~Yi$~d rules provided inter a!ia that all ttatfi~ i9 coal 
' 
' 
' 
A 
B 
c 
D 
E 
F 
G 
H 
• 
A 
B 
c 
D 
E 
F 
H 
658 
SUPREME COURT R.EPORTS 
[1984) 1 s.c.R. 
etc. in. wagon loads will. be loaded only fr;~ colliery sidings, coke oven . plant8 
_and washeries ~on the Eastern Railway, ·bui coal in wagons will not be permitted· 
'at the stations serving these colliery washeries. A further restdctiOn followed 
_with effect from December 4, t979 when the .Divisional Operating Superinten-
dent, Bilaspur for apparent reasQnS stopped booking of coal in smalls includina 
clubbing at all stations of North Eastern Railway. 
On February 11, . J980, a 
telegraphtc commup.ication was issued explaining that coal in wagon-loads can 
be booked from colliery sidings by the collierJcS concern_ed. 
~coking of slack 
· coal was wholly stopped as per a phone <all dated April 9, 1981. In exercise of 
the power conferred by sec. 27A ofthe Act, Union of India, the Ministry_ of 
Railways·issued Preferential Traffic Schedule. The schedufe pre~cribed five 
priorities 'A' to 'E' With inter se priorities amongst• A' to 'E' to .be accorded by 
the railways fo~ transport of certain· .goods or class. of g<?ods specified under 
each category. Different kinds of coal falls- under priority •C' (iii) which pro· 
vides for movement of coal 'froin cOIJieries -in acc~rdance with programmes and 
_movements -sponsored .or recommended by the Coal Controller and/or any 
Cot11i1ittee appointed by him and/or the State Government• and/or other 
recommending authorities and accepted by the Railway AdministratiOn·s -and/or 
Director, Movement (Railways),. Calcutta, and in·acccirdance with the Zon_al 
Scheme applicable to each field and the principles of transport rationalisation 
in f0rce fr0m tin1e to time. Priority 'E', a residu~y clause again involves coal 
fron1 collieries. 
The petitione~ who· were coal mer~hants: alleged that. sum. total of 
various rd'strictions including one dated A

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