IFB AGRO INDUSTRIES LIMITED Vs. CHIEF COMMERCIAL MANAGER (FM), EASTERN RAILWAY
LAWS(CAL)-2014-8-10
HIGH COURT OF CALCUTTA
Decided on August 08,2014

Ifb Agro Industries Limited Appellant
VERSUS
Chief Commercial Manager (Fm), Eastern Railway Respondents

JUDGEMENT

- (1.) This writ application has been preferred challenging, inter alia, the impugned demand of the respondents for demurrage charges on train-load basis from the petitioner no.1 up to September 8, 2008 including the letters dated January 5, 2009, January 19, 2009, January 22/27, 2009 and April 20, 2009 being Annexure "P-8" to the petition.
(2.) In the writ application it has, inter alia, been averred that the petitioner no.1 carries on business as manufacturer of Rectified Spirit which is made out of molasses. The entire production of Rectified Spirit is requisitioned by the State Government who directs the petitioner no.1 to supply the entire quantity of Rectified Spirit to Bottlers and is approved and licensed by the State Government. The petitioner no.1 imports molasses by railway rakes. The petitioner no.1 has a storage facility at Budge Budge in the land belonging to Kolkata Port Trust near the Budge Budge siding. Two railway tracks from the Budge Budge railway yard passes the said storage installation of the petitioner no.1 up to certain distance and the said tracks are used for unloading of their cargo by the petitioner no.1. Prior to September, 2008 the said two tracks could accommodate only 17 wagons. Subsequent thereto, such accommodation was extended for accommodation of 36 wagons but that was only half a rake since 65 wagons make a rake. The railways do not allow freight on rake-load basis but on wagonload basis which is much higher than rake-load basis. In respect of demurrage, the railways have charged the petitioner on trainload/ rake-load basis. From December, 2005 till February, 2009, the railways levied demurrage charges on train-load/rake-load basis amounting to Rs.47,59,505/-. According to the petitioners, the said demurrage ought to have been calculated on wagon-load basis and upon such calculation, the demurrage charge would have been Rs.9,51,291/-.
(3.) According to the petitioners since they have brought molasses on wagon-wise, para 2.1.2 of the Rates Circular No.74 of 2005 dated 19th December, 2005 was applicable. The said para 2.1.2 runs as follows :- "The entire group of wagons placed for loading/unloading shall be treated as one unit for the purpose of levy of demurrage charges i.e. even if one wagon out of the group is detained for loading/unloading beyond the prescribed free time, demurrage will be leviable on all the wagons in the group.";


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