Jagannatha Shetty, J. - (1.) This appeal, with Special Leave, is against the order and judgment dated July, 13, 1973, of the Railways Rates Tribunal, Madras, in complaint filed by the appellant under S. 41(1), Railways Act No. 9 of 1890. The background facts are these:
(2.) The appellant is a company. It has set up a fertilizer factory at Kota in Rajasthan. It is said to be an industrially backward area. The factory manufactures Urea for which the main raw material is Naptha. Naptha has to be transported from Koyali Refinery of Indian Oil Corporation. The nearest railway station is Bajuva near Baroda. The nearest railway station serving company's factory is Dadhevi in Rajasthan. The distance between Bajuva and Dadhevi is about 520 Kms. For transportation, the Naptha has been classified by the Railway under Clause 110-B of the tariff.
(3.) Before the actual setting up of the factory, the company, by its letter dated September 5, 1966 requested the Railway Board for a concessional freight rate for the carriage of Naptha. It requested the Railway Board for fixed Station to Station rate equivalent to classification 62.5-B. That would have meant reduction of about 43% in the normal tariff under Clause 110-B. In that letter it was pointed out that if such concessional rate was not fixed, the company would be put to disadvantageous position as against the other factories located at ports or near the refineries. The Railway Board by its letter Ex.C5 dated November 5, 1966 agreed to quote station to station rate equal to 85-B (Special). In the said letter it was also stated that as the special rate was being quoted ahead of the actual setting up of the factory the freight rate need to be reviewed when the traffic actually begins to move.;