Birla Cement Works
v.
G.m., Western Railways
(Supreme Court Of India)
Special Leave to Petition (Civil) No. 21448 Of 1994, 22051-52 And 22038-42 Of 1994 | 02-01-1995
Ramaswamy, K.
1. The petitioner is a manufacturer of cement at Chittorgarh in Rajasthan. It transported cement to various destinations through railway carriages. Prior to 3-5-1989, the petitioner got the cement transported through metre-gauge from the railway siding at Chanderia. After conversion into broad-gauge the railway siding was at Difthkola Chittor Broad-Gauge Rail Link. In consequence 34 kilometres distance was added to levy freight charges. Thereafter, between May-June 1989 and March 1990 the petitioner had various consignments booked and transported the cement to diverse destinations and paid the freight charges. Later, on 21-1-1991, the petitioner has sent a notice to the Western Railway under Section 78-B of the Indian Railways Act, 1890 (for short " the"), claiming refund of different amounts. Since it was rejected, on 23-12-1991 the petitioner laid the claim under Section 16 of thebefore the Railway Claims Tribunal at Jaipur, which by its order dated 25-11-1992, dismissed the petition holding as being barred under Section 78-B of the. When it was challenged in Civil Appeal No. 84 of 1993 and batch the Single Judge of the High Court by this order dated 25-1-1994 dismissed the same. On further Appeal No. 76 of 1994, the Division Bench by order dated 3-10-1994 confirmed the same. Thus, these special leave petitions
2. The principal contention raised by the petitioner is that it had discovered the mistake when the railway authorities confirmed by their letter dated 12-10-1990 that they had committed a mistake in charging excess freight on wrong calculation of distance. The limitation starts running from the date of discovery of mistake and, therefore, stands excluded, by operation of Section 17(1) (c) of the Limitation Act, 1963 (Act 21 of 1963) and that Section 78-B has no application to the facts in this case. In consequence, the High Court and the Tribunal have committed error of law in rejecting the claim for refund. We find no force in the contention
3. Section 17(1) (c) of the Limitation Act, 1963 would apply only to a suit instituted or an application made in that behalf in the civil suit. The Tribunal is the creature of the statute. Therefore, it is not a civil court nor the Limitation Act has application, even though it may be held that the petitioner discovered the mistake committed in paying overcharges and the limitation is not saved by operation of Section 17(1) (c) of the Limitation Act
4. Section 78-B of theprovides that a person shall not be entitled to refund of overcharge or excess payment in respect of animals or goods carried by Railway unless his claim to the refund has been preferred in writing by him or on his behalf to the Railway Administration to which the animals or goods were delivered to be carried by Railway etc. within six months from the date of the delivery of the animals or goods for carnage by Railway. The proviso has no application to the facts of this ease. An overcharge is also a charge which would fall within the meaning of Section 78-B of the. Since the claims were admittedly made under Section 78-B itself but beyond six months, by operation of that provision in the section itself, the claim becomes barred by limitation. Therefore, the Tribunal and the High Court have rightly concluded that the petitioner is not entitled to the refund of the amount claimed
5. We do not find any ground for our interference with the orders challenged in SLPs. The special leave petitions are accordingly dismissed.
1. The petitioner is a manufacturer of cement at Chittorgarh in Rajasthan. It transported cement to various destinations through railway carriages. Prior to 3-5-1989, the petitioner got the cement transported through metre-gauge from the railway siding at Chanderia. After conversion into broad-gauge the railway siding was at Difthkola Chittor Broad-Gauge Rail Link. In consequence 34 kilometres distance was added to levy freight charges. Thereafter, between May-June 1989 and March 1990 the petitioner had various consignments booked and transported the cement to diverse destinations and paid the freight charges. Later, on 21-1-1991, the petitioner has sent a notice to the Western Railway under Section 78-B of the Indian Railways Act, 1890 (for short " the"), claiming refund of different amounts. Since it was rejected, on 23-12-1991 the petitioner laid the claim under Section 16 of thebefore the Railway Claims Tribunal at Jaipur, which by its order dated 25-11-1992, dismissed the petition holding as being barred under Section 78-B of the. When it was challenged in Civil Appeal No. 84 of 1993 and batch the Single Judge of the High Court by this order dated 25-1-1994 dismissed the same. On further Appeal No. 76 of 1994, the Division Bench by order dated 3-10-1994 confirmed the same. Thus, these special leave petitions
2. The principal contention raised by the petitioner is that it had discovered the mistake when the railway authorities confirmed by their letter dated 12-10-1990 that they had committed a mistake in charging excess freight on wrong calculation of distance. The limitation starts running from the date of discovery of mistake and, therefore, stands excluded, by operation of Section 17(1) (c) of the Limitation Act, 1963 (Act 21 of 1963) and that Section 78-B has no application to the facts in this case. In consequence, the High Court and the Tribunal have committed error of law in rejecting the claim for refund. We find no force in the contention
3. Section 17(1) (c) of the Limitation Act, 1963 would apply only to a suit instituted or an application made in that behalf in the civil suit. The Tribunal is the creature of the statute. Therefore, it is not a civil court nor the Limitation Act has application, even though it may be held that the petitioner discovered the mistake committed in paying overcharges and the limitation is not saved by operation of Section 17(1) (c) of the Limitation Act
4. Section 78-B of theprovides that a person shall not be entitled to refund of overcharge or excess payment in respect of animals or goods carried by Railway unless his claim to the refund has been preferred in writing by him or on his behalf to the Railway Administration to which the animals or goods were delivered to be carried by Railway etc. within six months from the date of the delivery of the animals or goods for carnage by Railway. The proviso has no application to the facts of this ease. An overcharge is also a charge which would fall within the meaning of Section 78-B of the. Since the claims were admittedly made under Section 78-B itself but beyond six months, by operation of that provision in the section itself, the claim becomes barred by limitation. Therefore, the Tribunal and the High Court have rightly concluded that the petitioner is not entitled to the refund of the amount claimed
5. We do not find any ground for our interference with the orders challenged in SLPs. The special leave petitions are accordingly dismissed.
Advocates List
For
For Petitioner
- Shekhar Naphade
- Mahesh Agrawal
- Tarun Dua
For Respondent
- S. Vani
- B. Sunita Rao
- Sushil Kumar Pathak
Bench List
HON'BLE JUSTICE K. RAMASWAMY
HON'BLE JUSTICE N. VENKATACHALA
Eq Citation
(1995) 2 SCC 493
[1995] 1 SCR 5
AIR 1995 SC 1111
1995 ACJ 459
2 (1995) ACC 467
JT 1995 (2) SC 59
1995 (1) UJ 452
1995 (1) SCALE 386
2 (1996) CLT 238
1995 (25) ALR 464
LQ/SC/1995/4
HeadNote
Railways — Claims — Refund of overcharge or excess payment — Claim under S. 78-B, Indian Railways Act, 1890 — Time-bar — Limitation Act, 1963 — S. 17(1)(c) — Applicability to claims before Railway Claims Tribunal — Held, not applicable — Tribunal is not a civil court — S. 16, Indian Railways Act, 1890
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