High Court Patna High Court - Orders

Bajaj Hindusthan Ltd. vs East Central Railway &Amp; Ors on 1 September, 2010

Patna High Court – Orders
Bajaj Hindusthan Ltd. vs East Central Railway &Amp; Ors on 1 September, 2010
                   IN THE HIGH COURT OF JUDICATURE AT PATNA
                                 CWJC No.10840 of 2010
                     BAJAJ HINDUSTHAN LTD., A PUBLIC LIMITED COMPANY
                     INCORPORATED UNDER THE COMPANIES ACT, 1956
                     HAVING ITS UNIT AT GOLA GOKARNATH, P.O. & P.S.
                     GOLA, DISTT.- LAKHIMPUR KHERI (UTTAR PRADESH)
                     THROUGH ITS AUTHORISED AGENT SHREE RAM
                     BHALOTIA, S/O SRI S.G. BHALOTIA
                                           Versus
                  1. EAST CENTRAL RAILWAY HAVING ITS OFFICE AT B-
                     BLOCK     DIGHI, HAJIPUR, DISTT.- VAISHALI (BIHAR)
                     THROUGH ITS GENERAL MANAGER
                  2. THE CHIEF COMMERCIAL MANAGER, EAST CENTRAL
                     RAILWAY B-BLOCK, DIGHI, HAJIPUR, DISTT.- VAISHALI
                     (BIHAR)
                  3. SENIOR DIVISIONAL COMMERCIAL MANAGER          EAST
                     CENTRAL RAILWAY, DANAPUR, P.O. & P.S. DANAPUR,
                     DISTT.- PATNA (BIHAR)
                  4. CHIEF GOODS SUPERVISOR, EAST CENTRAL RAILWAY
                     FATUHA RAILWAY GOODS YARD, FATUHA, PATNA
                     (BIHAR)
                  5. GOODS SHED SUPERVISOR, EAST CENTRAL RAILWAY
                     FATUHA RAILWAY GOODS YARD, FATUHA, PATNA
                     (BIHAR)
                  6. THE STATION HOUSE OFFICER, RAILWAY PROTECTION
                     FORCE, FATUHA STATION FATUHA, DISTT.- PATNA

                    For the petitioner        :   Mr. Y.V.Giri, Sr. Advocate.
                                                  Mr. Raju Giri, Advocate.
                    For the Respondent no. 7 : Mr. Ravij Kr.Verma, Sr. Advocate.
                                                  Mr. Sanjeev Kumar, Advocate.
                    For the Railways          : Mr. Anil Kumar Sinha, Advocate.
                                             -----------

                                                  O R D E R

5. 01-09-2010 1. This writ petition has been filed by the petitioner

(Bajaj Hindusthan Ltd.) challenging the Letter (Annexure-5) of Ex-

Goods Shed Supervisor, E.C. Railway, Fatuha written to M/s Pratik

Enterprises (Respondent no. 7) detaining 5 wagons (3058.5

quintals) of sugar of the petitioner company kept at open railway

yard at Fatuha until he produces railway receipts of 12 wagons

sugar, which was released in favour of Respondent No. 7 on earlier

consignment. Another relief sought for is for a direction to
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respondent authorities (Respondent nos. 1 to 6) to immediately

release the aforesaid 05 wagons sugar lying in open place which the

petitioner company had booked with the railways at Gola

Gorakhnath via Gonda to be transported to Fatuha Railway Station

so that the same may be delivered to intending purchasers.

2. The claim of the petitioner (Bajaj Hindusthan Ltd.)

is that it is a sugar factory which is a public limited company

incorporated under the Companies Act, 1956 and it booked 42

wagons of sugar from Gola Gorakhnath Railway Station for

Fatuha vide goods train reaching Fatuha on 27-06-2010. It is

further claimed by the petitioner that out of 42 wagons, 33 wagons

were for M/s Pratik Enterprises (Respondent no. 7) and the

remaining 09 wagons were for other purchasers and hence, when

the goods train reached Fatuha Station, 33 wagons of sugar were

received by the petitioner’s agent who gave it to M/s Pratik

Enterprises (Respondent no. 7). Further 04 wagons of sugar were

also received by the petitioner’s agent who supplied it to the other

purchasers, but the remaining 05 wagons of sugar, which were for

other purchasers, were not given by the authorities to the

petitioner’s agent on the ground that on some earlier occasion 12

wagons of sugar were received by M/s Pratik Enterprises

(Respondent no. 7) without showing any railway receipts merely on

the basis of indemnity bond.

3. Learned counsel for the petitioner (Bajaj Hindusthan

Ltd.) submitted that 05 wagons of sugar, which were blocked by

the railway authorities (Respondent nos. 1 to 6) were not concerned
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with M/s Pratik Enterprises (Respondent no. 7) rather they

belonged to the petitioner(Bajaj Hindusthan Ltd.), which was

intended for other purchasers and hence, the respondents authorities

were not justified in blocking 05 wagons of sugar, although the

petitioner had produced all the 42 rent receipts for the present

consignment. It was also argued that the name of the consignees

were not written in the railway receipts and it transpires that the

railway authorities had subsequently included the name of M/s

Pratik Enterprises (Respondent no. 7) on all those 42 railway

receipts, which was obviously for illegal purpose.

4. On the other hand, learned counsel for the

respondent Nos. 1 to 6 vehemently opposed the contentions of the

learned counsel for the petitioner and submitted that all rights and

liabilities of the consignment had passed to M/s Pratik Enterprises

(Respondent no. 7), who was the consignee noted in all the 42

railway receipts, which reached Fatuha Station on 27-06-2010. It

was further stated that railway is not concerned with the internal

arrangement between the petitioner and Respondent no. 7 and it

was M/s Pratik Enterprises, who was liable for all the 42 wagons of

sugar. It was also averred by learned counsel for the respondent

authorities( Respondent no. 1 to 6) that on earlier occasion also 42

wagons of sugar had come in the name of M/s Pratik Enterprises

(Respondent no. 7), but it produced only 30 railway receipts and

took away all the 42 wagons of sugar producing indemnity bond

for the remaining 12 wagons of sugar whereafter Respondent no. 7

had to produce rent receipt for the remaining 12 wagons of sugar,
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which it never did and hence, the authorities concerned were quite

justified in blocking the delivery of 05 wagons of sugar in the

present consignment. Learned counsel for the said contesting

respondents also relied upon Section 83 of the Railways Act, 1989,

which empowered the authorities concerned to detain any

subsequent consignment of such person for whose earlier

consignment he had failed to pay on demand any freight or other

charges due from him and the authorities were even entitled to sell

the item if it was perishable in nature.

5. M/s Pratik Enterprises (Respondent no. 7) also

appeared in the case and supported the claim of the petitioner(Bajaj

Hindusthan Ltd.) stating that earlier consignment was not of the

petitioner or of Respondent no. 7 rather it belonged to Prakash

Bhalotia & Bros. of Kolkata who was the consignee as would be

apparent from Annexure-R/2 of the counter affidavit filed by the

respondent authorities. He further submitted that M/s Pratik

Enterprises (Respondent no. 7) is of Patna whereas the said

consignee of the earlier consignment was M/s Prakash Bhalotia &

Bros. of Kolkata which had no concern with Respondent no. 7 and

the said earlier consignment had come from Sangli which was

unconnected with the petitioner.

6. From the aforesaid facts and circumstances of the

case as well as the pleadings of the parties and the materials on

record, it is quite apparent that earlier consignment which is

annexed as Annexure-R/2 to the counter affidavit of respondent

authorities, was in the name of Prakash Bhalotia & Bros. of
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Kolkata, which was unconnected with the petitioner (Bajaj

Hindusthan Ltd.). The indemnity bond with respect to the earlier

consignment was also issued by the said Prakash Bhalotia & Bros.

of Kolkata and there is nothing to show from the said indemnity

bond that M/s Pratik Enterprises (Respondent no. 7) had any

connection with the said indemnity bond with respect o the earlier

consignment.

7. So far the present consignment is concerned,

admittedly, it was sent by the petitioner (Bajaj Hindusthan Ltd.)

from Gola Gorakhnath to Fatuha and all the requisites including the

excise duty etc. had already been paid and there were no dues with

respect to the entire 42 wagons of sugar of the present

consignment. Hence, there was no occasion at all for the

Respondent authorities to block 5 wagons of sugar due to non-

production of railway receipts of the previous consignment when

for the present consignment all the railways receipts including for

the 5 blocked wagons were already produced.

8. It is quite strange that the respondent authorities are

claiming that M/s Pratik Enterprises (Respondent no. 7) had not

produced railways receipts for 12 wagons of the earlier

consignment, but in spite of that the railways authorities had

blocked only 5 wagons of sugar of the present consignment without

giving any reason as to why only 5 wagons of sugar were blocked

and not 12 wagons of sugar. No valid explanation has been given

by the respondent authorities in the counter affidavit or in any

documents annexed therewith.

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9. In the said circumstances, 42 railway receipts

having already been produced by the petitioner (Bajaj Hindusthan

Ltd.) for the present consignment, there was no occasion for the

respondent authorities to block 5 wagons of sugar on such frivolous

ground. Hence, Section 83 of the Railway Act, 1989 is not attracted

to the facts and circumstances of this case.

10. It may be interesting to note that the impugned

order has been passed by an Ex-Goods Shed Supervisor of Fatuha

about whom Respondent no. 7 had specifically claimed that he had

already been suspended earlier. This claim has not been denied by

the respondent authorities. Furthermore, from the impugned order,

it is also apparent that he had put his signature below which his

designation has been mentioned as Ex-Goods Shed Supervisor,

Fatuha. This fact not only shows that the order issued and steps

taken by such person is absolutely without jurisdiction, but is also

very surprising as to how the authorities of the railways are

tolerating such illegal activities by such person.

11. In the aforesaid facts and circumstances, it is quite

apparent that the entire acts of the authorities concerned, is

absolutely illegal, arbitrary and perverse. Accordingly, impugned

order/direction (Annexure-5) issued by the Ex-Goods Shed

Supervisor of East Central Railway at Fatuha is hereby quashed

and the respondent authorities are directed to immediately release

the aforesaid 5 wagons (3058.5 quintals) of sugar in favour of the

petitioner (Bajaj Hindusthan Ltd.), who had booked the same with

the railways at Gola Gorakhnath and had already produced receipts
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with respect thereto.

12. However, if the said sugar has been damaged, stolen

or has perished due to the latches and negligence of the respondent

railways authorities, the petitioner (Bajaj Hindusthan Ltd.) shall be

entitled to be adequately compensated by the railways authorities

and if the said authorities fail to adequately compensate the same,

the petitioner (Bajaj Hindusthan Ltd.) shall be entitled to raise the

issue before the appropriate forum, which will decide the matter in

accordance with law.

13. However, the relevant authorities shall be entitled to

take appropriate steps against concerned persons with respect to 12

wagons of sugar of the earlier consignment for which railway

receipts were not produced by the consignee concerned.

14. With the aforesaid observations and directions, this

writ petition is allowed.

Sujit                                                           (S.N.Hussain, J.)