- (1.) The two appeals which are being disposed of by this common Judgement have a chequered history of litigation. The West Coast Paper Mills Limited, Dandeli and Dandeli Ferro Alloys Limited, Dandeli, the two plaintiffs arrayed as respondents in the two appeals (and which would include their predecessors) have their mills situated at Dandeli in the State of Karnataka. They were required to transport their goods between Alnavar and Dandeli by railways. They were being charged at a flat rate from Alnavar to Dandeli irrespective of the commodity carried and they were not given the benefit of telescopic system of rates which was allowed by the Railways to others and in respect of other goods. The effect of the benefit of telescopic system of rates being denied to the respondents was that they had to pay freight on certain goods at three times compared to what would have been payable in case the benefit of telescopic system of rates was allowed to them.
(2.) On 24th June, 1963, West Coast Paper Mills Limited filed a complaint (registered as complaint no. 4/1963) against the Railway Administration complaining of illegality on account of contravention of the provisions of section 28 of the Indian Railways Act, 1890 (hereinafter referred to as "the Act") and of unreasonability on the part of the Railway Administration in charging the freight at the impugned rates. The period for which the complaint related was 26th April, 1963 to 1st October, 1966 (both dates inclusive and inclusive of the period introduced into the complaint by way of amendment). By order dated 18th April, 1966, the tribunal held that in devising the freight rates the Railway Administration had contravened the provisions of section 28 of the Act and the complainant i.e. the respondent West Coast was treated with discrimination and unreasonableness. In spite of holding so, the tribunal did not" direct the amount of freight illegally and unreasonably collected by the Railway Administration, to be refunded in view of the holding of this Court in Upper Doab Sugar Mills Ltd. V/s. Shahdara (Delhi) Saharanpur Light Railway Company Ltd., 1963 2 SCR 333 wherein this Court has taken the view that the Tribunal is competent only to grant declaratory relief and there is no provision which authorises the Tribunal to grant the consequential relief also.
(3.) The Union of India preferred an appeal by special leave to this Court laying challenge to the decision of the tribunal dated 18th April, 1966 under Art. 136 of the Constitution of India. By Judgement dated 14th October, 1970 in Union Of India V/s. West Coast Paper Mills Limited, 1971 2 SCR 594 the appeal preferred by the Union of India was dismissed and the decision of the tribunal was affirmed. During the course of its judgment, this Court also recorded a finding that the freight charges levied by the Railway Administration were in contravention of section 28 of the Act and were unreasonable.;