UNION OF INDIA Vs. BHAVNAGAR SALT AND INDUSTRIAL WORKS PRIVATE LIMITED
LAWS(SC)-1988-7-37
SUPREME COURT OF INDIA (FROM: GUJARAT)
Decided on July 27,1988

UNION OF INDIA Appellant
VERSUS
BHAVNAGAR SALT AND INDUSTRIAL WORKS PRIVATE LIMITED Respondents

JUDGEMENT

Ranganath Misra, J. - (1.) This appeal by certificate under Article 133(1)(a) and (c) of the Constitution is by the defendants against the reversing judgment of the Gujarat High Court. The plaintiff-respondent filed a suit in the Court of Civil Judge, Senior Division, at for:(i) declaration that the contract dated 5th of May, 1943 between it and the ex-State of Bhavnagar valid for a period of 51 years commencing from 5th of May 1943 fixing the charges for carrying salt in wagons from the siding to the Concrete Jetty was binding on the defendants and they had no right to revise the terms thereof; (ii) The agreement dated 29th of March, 1951, was valid, subsisting and binding on the defendants and the stipulated rates were not liable to be varied except in the manner provided in clause 8A of the agreement.
(2.) On the basis of the aforesaid contentions a claim for refund of Rs. 1,49,667.09 was made. The defendants maintained that the suit was not maintainable as under the provisions of the Indian Railways Act, 1890, the matter came within the purview of the Statutory Rates Tribunal; the agreement was not binding and at any rate was available to be unilaterally modified and the plaintiff had no cause of action.
(3.) The trial court dismissed the suit by finding all the material issues against the plaintiff but the High Court in appeal by the plaintiff reversed the judgment and decreed the suit for a sum of Rs. 1, 25,264.87.;


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