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[Cites 25, Cited by 5]

Madhya Pradesh High Court

M/S Maihar Cement vs Union Of India on 25 April, 2012

Equivalent citations: AIR 2012 MADHYA PRADESH 104, (2012) 4 ACC 549

         HIGH COURT OF MADHYA PRADEESH  JABALPUR

                         (Writ Petition No.469/2009)

                              M/s. Maihar Cement

                                         Vs.

                          Union of India and others

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         PRESENT  :  HON'BLE SHRI JUSTICE SANJAY YADAV
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Counsel for Petitioner



                                               Shri Aditya Adhikari, Advocate
Counsel for respondents                        Shri Atul Choudhary, Advocate.

O R D E R (25/4/2012) PER SANJAY YADAV, J   This   order   shall   lead   to   final   disposal   of   writ   petition   Nos.  459/2009   -   M/s.   Maihar   Cement   v.   Union   of   India   and   others;  460/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others;  461/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others;  463/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others;  464/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others;  466/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others;  468/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others;  470/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others;  472/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others;  473/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others 2 W.P. NO. 469/2009 and others 474/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others;  4083/2009­M/s.   Maihar   Cement   v.   Union   of   India   and   others;  4086/2009­ M/s. Maihar Cement v. Union of India and others and  14784/2008 M/s. Maihar Cement v. Union of India and others as the  issue raised in these writ petitions being similar.

2. Issue which crops up for consideration is whether respondent  Railways are justified in declining to entertain the claim put forth by  the petitioner in respect of the over charge which accrued because of  the   goods   booked   for   transportation   to   destination   station   were  taken through shorter route than the route through which it were  booked, which led to claim for the difference.

3. To be specific, the facts on record as are not disputed by either  of the parties, are carved out from writ petition No. 466/2009 for the  purpose of proper appreciation of the issue.

4. On 8.2.2008 rakes were booked for transportation of cement  from Satna to Haibergaon.   For   that, the petitioner paid freight of  Rs.34,11,516/­   against   the   Railway   Receipt   Nos.   212005672   to  212005679 dt. 8.2.2008.   It is not in dispute in all the cases that the  cement were transported through a shorter route.   The freight was  paid   for   a   distance   of   1590   k.ms.   And   the   same   was   taking   into  consideration   that   between   Katihar   Junction   and   Barsoi   Junction  there existed a meter gauge railway track, therefore, the consignment  used to be transported from Katihar to Barsoi via Kumedpur.  That,  w.e.f.   11.12.2007,   meter   gauge   was   converted   into   broad   gauge  between Katihar and Barsoi as a result of which consignment could  be   transported   directly   from   Katihar   to   Barsoi.     The   chargeable  distance being 38.72 whereas the freight was charged as 59.99 k.ms.  3 W.P. NO. 469/2009 and others Between   the   said   stations.     Thus   extra   freight   in   respect   of   21:27  k.ms. was charged.  It was the difference of amount/excess amount  charged   for   aforesaid   k.ms.,   which   was   claimed   as   refund   on  25.8.2008.

5. The claim was repudiated on the ground of delay.  The reliance  was placed on the provisions of Section 106 (3) of the Railways Act,  1989, which stipulates:    

106.   Notice   of   claim   for   compensation   and   refund   of  overcharge.­  "(1) A   person   shall   not   be   entitled   to   claim  compensation against a railway administration for the loss,  destruction,   damage,   deterioration   or   non­   delivery   of  goods carried by railway, unless a notice thereof is served  by him or on his behalf,­ 
(a) to the railway administration to which the goods are  entrusted for carriage; or 
(b) to the railway administration on whose railway the  destination   station   lies,   or   the   loss,   destruction,  damage or deterioration occurs, within a period of  six   months   from   the   date   of   entrustment   of   the  goods. 

(2) Any information demanded or enquiry made in writing  from,   or   any   complaint   made   in   writing   to,   any   of   the  railway administrations mentioned in sub­ section (1) by or  on behalf of the person within the said period of six months  regarding the non­ delivery or delayed delivery of the goods  with particulars sufficient to identify the goods shall, for the  purpose of this section, be deemed to be a notice of claim  for compensation. 

(3)  A   person   shall   not   be   entitled   to   a   refund   of   an  overcharge in respect of goods carried by railway unless a  notice therefor has been served by him or on his behalf to  the   railway   administration   to   which   the   overcharge   has  been paid within six months from the date of such payment  or   the   date   of   delivery   of   such   goods   at   the   destination  station, whichever is later."                       (emphasis supplied)

6. The impugned order states that "with reference to your letter  quoted above, it is advised that your claim has been received in this  4 W.P. NO. 469/2009 and others office after six (6) months from the date of booking of consignment/ payment   of   freight/delivery   of   consignment   and   is   "Time­Barred" 

under section 106 (3) of the Indian Railways Act, 1989.  Your claim is  therefore repudiated.
In  case   if documentary  evidence   about  submission  of  claim  "In­time" is produced, then your claim will be considered on merit.
This is without prejudice."

7. The orders are being challenged on grounds:

(a)  That, the claim for refund based on the ground that though  the goods which were booked for charging from longer route and  carried   through  a   shorter   route  is   not   a   claim   for   refund   for   over  charge within the meaning of Section 106 of Railways Act, 1989 as  such Section 106 (3) of the Railways Act, 1989 has no application in  the facts and circumstances of the case.
(b)   Secondly,   that   by   virtue   of   Railway   Board's   Circular   No.  T.C.   IV/94/4950/Policy   Matters   dated   11.1.1995   there   being  delegation of power regarding settlement of delayed claim of refund  in favour of Zonal General Manager, respondents were not justified  in rejecting the claim put­forth by the petitioner being time barred  without invoking the powers delegated vide aforesaid letter.  
(c)  It is further contended that Section 61 of the Railways Act,  1989 which deals with maintenance of rate books etc. for carrying of  goods provides for that "every railway administration shall maintain,  at each station and at such other places where goods are received for  carriage, the rate­ books or other documents which shall contain the  rate authorised for the carriage of goods from one station to another  and make them available for the reference of any person during all  5 W.P. NO. 469/2009 and others reasonable   hours   without   payment   of   any   fee",     having   not   been  adhered   to   by  the   Railways,  they   are   not   justified   in  rejecting   the  claim for refund of overcharge by the petitioner being time barred.

8. In  substantiation therefor  reliance  is placed  on the decision  rendered in the Associated Cement Co. Ltd. v. Union of India (AIR  1998   MP   241).     It   is   urged   on   the   basis   of   said   decision   that,  overcharge having been held to be that it does not include excess  money   charged   on   supposition   that   goods   are   carried   by   longer  route for refund of such excess money notices are not required.  On  the   strength   of   the   aforesaid   proposition   learned   counsel   for   the  petitioner   reiterates   that   the   respondents   were   not   justified   in  treating   the   claim   for   refund   of   excess   money   as   refund   of  overcharge and rejecting the same being barred by time as stipulated  under Section 106 (3) of the Railways Act.

9. In   furtherance   of   the   submission   that   there   was   valid  delegation   of   power   in   favour   of   Zonal   General   Manager   to   have  considered   the   time   barred   claim,   it   is   contended   that   the  notification having been issued in exercise of power under Section 3  of Railways Board Act, 1989, the respondents were not justified in  not exercising the discretion conferred. 

10. For these reasons the petitioner seeks quashment of the order  rejecting   the   claim   of   the   petitioner   for   refund   on   the   ground   of  limitation and a command to respondents to refund the amount due  to the petitioner together with interest at the rate of 12 %.

11. The   respondents   on   being   noticed   have   raised   preliminary  objection.     It   is   contended   that   since   the   claim   for   refund   of  overcharge falls within the meaning of Section 106 of 1989 Act which  6 W.P. NO. 469/2009 and others provides for notice of claim for refund of overcharge, the petitioner  has   an   alternative   remedy   of   approaching   the   Railway   Claims  Tribunal.  It is further contended that the claim for refund having not  been preferred within a period of six months from the date of such  payment or the date of delivery   of such  goods at the destination  station whichever is later is barred by time as per sub­section (3) of  Section   106  of   1989   Act.    The   respondents   in  furtherance  of   their  submissions have placed reliance on the decision of Supreme Court  in M/s. Birla Cement Works V. G.M.  Western Railway : (1995) 2 SCC 

493.     On   the   basis   whereof   it   is   contended   that   the   provisions   of  Limitation Act, 1963 are not applicable for refund under 1989 Act.  Regarding delegation of power in favour of Zonal General Manager  the respondent Railways vide I.A. No. 3999/2012 has filed circular  issued by the Railway Board No. TC­4/07/RP/1 dated 22.2.2010; on  the   strength   whereof   it   is   contended   that,   the   circular   dated  11.1.1995 which authorized the Zonal General Manager to take up  the time barred cases of refund has been withdrawn.  It is contended  that since the circular dated 11.1.1995 does not exist no relief can be  granted   to   the   petitioner.     Furthermore,   while   contradicting   the  factual aspect adumbrated  on Section 61 of 1989 Act, it is contended  on behalf of respondent Railways that the information that there will  be   a   change   in   distance   (resulting   in   change   of   freight)   was  circulated by the Railways on 11.12.2007 and thereafter on 18.1.2008.  Denying the allegation that it was on 22.8.2008 that the petitioners  came to know about change, it is contended that the petitioner, is a  regular customer, and is expected to know about circular issued on  11.12.2007 and 18.1.2008.  It is contended that it is to overcome the  7 W.P. NO. 469/2009 and others issue of limitation that the petitioner has cooked up a story of having  received the information regarding change of rate on 22.8.2008.   In  furtherance  to the said submissions it is asserted that notification  dated 11.12.2007 was circulated to all Station Masters and out agents  of the Railway concerned and the petitioner should have known it as  wide publicity was given to the notification.

12. The issues which crop up for consideration is that (i) whether  will   not   the   claim   of   excess   money   charged   on   supposition   that  goods are carried by longer route for refund be on overcharge as is  provided under Section 106 which restricts the claim by embargo of  limitation under sub­section (3). (ii) Secondly, if an overcharge, the  claim for refund being expressly time barred, whether obligatory it  was for the Zonal General Manager to have exercised the discretion  of entertaining the time barred claim as conferred vide circular No.  TC.IV/94/4950   Policy   matters   dated   11.1.1995.     And   the   effect   of  subsequent   circular   No.   TC.4/07/RP/1   dated   22.2.2010.     And   (iii)  thirdly, the effect of Section 61 of the Act of 1989.

13. Regarding the first issue reliance being placed on the decision  in Associated Cement Co. Ltd. (supra), wherein it is held by learned  Single Judge of this Court:

"8. It is obvious that this section is mandatory in nature  and, therefore, the claims of the appellant must fail if claim  is for overcharge of freight.  The service of notice under S.78­ B   of   'the   Act   of   1890"   is   a   must,   before   person   can   claim  refund   of   "over   charge"   or   compensation   for   loss,  destruction   or   deterioration   or   non­delivery   of   animals   or  goods.  Now, the word "overcharge" has not been defined in  'the Act of 1890'.  Therefore, ordinary dictionary meaning of  the word has to be applied.  Overcharge means charge more  8 W.P. NO. 469/2009 and others than   what   is   actual   value   of   anything.     Strictly   speaking,  overcharge   means   to   charge   more   than   what   is   due   to   a  thing or a transaction.   The appellant in this case says the  value of freight should be measured by distance to which the  goods were in fact, carried and not on the hypothetical basis  that   goods   were   to   be   carried   in   accordance   with   the  supposed   rationalization   scheme.     The   longer   rationalized  route was different than the actual shorter route as chalk is  different   from cheese.   The  longer  route was  costly to  the  appellant.  The shorter was cheaper.  The appellant was not  charged more for the same thing.   It was charged more for  some thing different.   Thus, the appellant was not charged  more   than   the   due   charge   for   1294   kilometers.     It   was  charged for 1315 kilometers on a supposition that it was due.  The extra charge was some thing undue, for this reason, the  refund cannot be said for an 'over­charge'.
9. Here,   the   excess   of   money   recovered   from   the  appellant   is   not   of   the   same   'genus   or   class'.     Excess   of  freight charged was not permitted by law.  The excess charge  belonged to different 'genus or class' because it was charged  on a supposition that goods are liable to be carried by longer  route under the rationalized scheme.  It was actually not so.  Thus,   it   falls   in   the   category,   i.e.,   'money   recovered   when  nothing was due'.  To such a case, S. 78­B of 'the Act of 1890'  did not apply."

14. However,   it   appears   that   the   decision   in   M/s.   Birla   Cement  Works (supra) was not taken note of, which was also a case of refund  of excess money charged as freight.  

15. It is held in V. Kishan Rao v. Nikhil Super Specialty Hospital : 

(2010) 5 SCC 513:
"54. When a judgment is rendered by ignoring the provisions  of the governing statute and earlier larger Bench decision on  the point such decisions are rendered `Per incuriam'. This  concept   of   `Per   incuriam'   has   been   explained   in   many  9 W.P. NO. 469/2009 and others decisions of this Court. Justice Sabyasachi Mukharji (as his  Lordship then was) speaking for the majority in the case of  A. R. Antultulay v. R.S. Nayak and another [(1988) 2 SCC 602]  explained the concept  in the following  words: (SCC p.652,  para 42) "42.   .......'Per   incuriam'   are   those   decisions   given   in  ignorance or forgetfulness of some inconsistent statutory  provision   or   of   some   authority   binding   on   the   court  concerned,   so   that   in   such   cases   some   part   of   the  decision   or   some   step   in   the   reasoning   on   which   it   is  based,   is   found,   on   that   account   to   be   demonstrably  wrong."

Subsequently   also   in   the   Constitution   Bench   judgment   of  this   Court   in   Punjab   Land   Development   and   Reclamation  Corporation Ltd. vs.  Labour Court (1990) 3 SCC 682, similar  views   were   expressed   in   paragraph   40   at   page   705   of   the  report."

16. In State of M.P. v. Narmada Bachao Andolan (2011) 7 SCC 639,  it is observed:

67.   Thus,   "per   incuriam"   are   those   decisions   given   in  ignorance   or   forgetfulness   of   some   statutory   provision   or  authority binding on the Court concerned, or a statement of  law   caused   by   inadvertence   or   conclusion   that   has   been  arrived at without application of mind or proceeded without  any reason so that in such a case some part of the decision or  some step in the reasoning on which it is based, is found, on  that account to be demonstrably wrong.

17. Thus, clear it is that, the decision on an issue by the Supreme  Court has the binding effect.   In M/s. Birla Cement Works (supra),  which was not taken note of in Associated Cement Co. Ltd., the case  was also of refund of excess charge as will be evident from the fact of  the said case reproduced in toto:

10 W.P. NO. 469/2009 and others

"1. The petitioner is a manufacturer of cement at Chittorgarh  in   Rajasthan.   It   had   transported   cement   to   various  destinations through railway carriages. Prior to 3.5.1989, the  petitioner got the cement transported through meter gauge  from the railway siding at Chanderia. After conversion into  broad   gauge   the   railway   siding   was   at   Difthkola   Chittor  Broad   Gauge   Rail   Link.   In   consequence   34   kilometers'  distance   was   added   to   levy   freight   charges.   Thereafter,  between May­June, 1989 and March, 1990 the petitioner had,  various consignments, booked and transported the cement  to diverse destinations and paid the freight charges. Later, on  January   21,   1991,   the   petitioner   has   sent   a   notice   to   the  Western Railway under Section 78­B of the Indian Railway  Act, 1890, (for short, 'the Act'), claiming refund of different  amounts. Since it was rejected, on 23.12.1991 the petitioner  laid   the   claim   under   s.   16   of   the   Act   before   the   Railway  Claims   Tribunal   at   Jaipur,   which   by   its   Order   dated  25.11.1992,   dismissed   the   petition  holding  as  being   barred  under   s.78B   of   the   Act.   When   it   was   challenged   in   Civil  Appeal   No.84/93   and   batch   the   Single   Judge   of   the   High  Court by his order dated 25.1.1994 dismissed the same. On  further appeal No.76/94, the Division Bench by order dated  3.10.94   confirmed   the   same.   Thus,   these   Special   Leave  Petitions.
2. The principal contention raised by the petitioner is that it  had   discovered   the   mistake   when   the   railway   authorities  have   confirmed   by   their   letter   dated   12.10.1990   that   they  have committed mistake in charging excess freight on wrong  calculation   of   distance.   The   limitation   starts   running   from  the   date   of   discovery   of   mistake   and,   therefore   stands  excluded   by   operation   of   s.17(1)(c)   of   the   Limitation   Act,  1963 Act 21 of 1963 and that s.78­B has no application to the  facts in this case. In consequence, the High Court and the  Tribunal have committed error of law in rejecting the claim  for refund. We find no force in the contention.
11 W.P. NO. 469/2009 and others
3. Section 17(1)(c) of the Limitation Act, 1963, would apply  only to a suit instituted or an application made in that behalf  in the civil suit. The Tribunal is the creature of the statute.  Therefore, it is not a civil court nor the Limitation Act has  application, even though it may be held that the petitioner  discovered the mistake committed in paying 'over charges'  and the limitation is not saved by operation of s. 17(1)(c) of  the Limitation Act.
4. Section 78­B of the Act provides that a person shall not be  entitled   to   refund   of   over­charge   or   excess   payment   in  respect   of   animals   or   goods   carried   by   railway   unless   his  claim to the refund has been preferred in writing by him or  on   his   behalf   to   the   railway   administration   to   which   the  animals or goods were delivered to be carried by railway etc.  within   six   months   from   the   date   of   the   delivery   of   the  animals or goods for carriage by railway. The proviso has no  application to the facts of this case. An over charge is also a  charge which would fall within the meaning of s.78­B of the  Act.   Since   the   claims   were   admittedly   made   under   s.78­B  itself but beyond six months, by operation of that provision  in the section itself, the claim becomes barred by limitation.  Therefore,   the   Tribunal   and   the   High   Court   have   rightly  concluded that the petitioner is not entitled to the refund of  the amount claimed.
5. We do not find any ground for our interference with the  orders challenged in S.L.Ps. The Special Leave Petitions are  accordingly dismissed."

18. Thus, even a case where refund of excess amount paid towards  the freight the same would be a refund of overcharge and is governed  by   the   provisions   under  Section  106  of   1989   Act.     Sub­section   (3)  whereof   clearly   stipulates   that   a   person   shall   not   be   entitled   to   a  refund of an overcharge in respect of goods carried by railway unless  a   notice   therefor   has   been   served   by   him   or   on   his   behalf   to   the  12 W.P. NO. 469/2009 and others railway administration to which the overcharge has been paid within  six months from the date of such payment or the date of delivery of  such goods at the destination station, whichever is later.

19. It is not in dispute that in bunch of these cases that the claim  preferred was after expiry of six months from the date of payment/  delivery of such goods at the destination station. Thus the law laid  down by this Court in M/s. Associated Cement Co. Ltd. (supra) is not  binding   in   view   of   decision   by   the   Supreme   Court   in   M/s.   Birla  Cement (supra).

20. The question next is whether the General Zonal Manager was  under an obligation to have exercised the discretion conferred vide  notification dated 11.1.1995.  The notification was in following term:

"Government of India Ministry of Railways, Railway Board NO.TCIV/94/4950/Policy Matters  New Delhi dt. 11.1.1995 The General Manager/Refunds All Indian Railways, Sub: Relegation   of   powers   regarding  settlement   of   time   barred   refund  cases.
Please   refer   to   Board's   letter   No.   94/TC.III/3/1   dt.  12.10.1994   which   is   in   supersession   of   Boards   letter   No.  77/TC.iii/94/4 DT. 20.6.1977 under which Board have decided  to delegate full powers to General Managers to settle FASCAO  irrespective of the monetary limits.
Since the instruction issued on 20th  June 1977 were made  applicable in settlement of time barred claims for refund of  overcharge   also   vide   Board's   letter   No.   CIV/77/4950/22   dt.  02.11.1977, it is clarified that the delegation of powers referred  13 W.P. NO. 469/2009 and others to in Board's letter No. 94/TC­III/3/1 dt. 12.10.1994 extends  not only to time barred claims for refund of overcharge. The receipt of this letter may pleased to acknowledged. (It   disposes   of   Eastern   Railway's   letter   No.  CC/RS/Policy/94 dt. 14.11.1994.).

21. Apparent   it   is  from   the  notification   that  the   same   has   been  issued by the Railway Board which is in purported exercise of powers  conferred by Section 3 of the Indian Railway Board Act, 1905, which  stipulates:

"3.Mode   of   signifying   communications   from   the   Railway  Board.     Any   notice,   determination,   direction,   requisition,  appointment, expression of opinion, approval or sanction, to  be given or signified on the part of the Railway Board, for any  of the purposes of, or in relation to, any powers or functions  with which it may be invested by notification under section  2, shall be sufficient and binding if in writing signed by the  Secretary   to   the   Railway   Board,   or   by   any   other   person  authorized by the said Railway Board to act in its behalf in  respect   of   the   matters   to   which   such   authorization   may  relate; and the said Railway Board shall not in any case be  bound in respect of any of the matters aforesaid unless by  some writing signed in manner aforesaid. 

22. The Railway Board empowering the General Manager to settle  the time barred refund cases, the General Manager could not have  abdicated the power so conferred upon him; as he was bound by it.  The question now is what would be effect of subsequent notification  issued on 22.2.2010, which is in the following term:

Government of India (Bharat Sarkar) Ministry of Railways (Rail Mantralaya) (Railway Board) No.TC­IV/2007/RP/1       New Delhi, Dated 22­02­2010 The General Managers (Claims), 14 W.P. NO. 469/2009 and others All Indian Railways Sub:  Settlement of time barred claims for refund of excess  freight and goods compensation claims.
Ref: Board's letter Nos.
77/TC­III/4 dated 20.6.1977 94/TC­III/3/1 dated 12.12.1994 TC­IV/94/4950/Policy Matters dated 11.01.1995. A   doubt   has   been   raised   by   some   Railways   regarding  settlement   of   time   barred,   claims   for   refund   of   over   charge   and  goods compensation claims.
2. In   case   of   refund   of   overcharge,   which   is   covered   under  Section 106(3) of Railways Act 1989, a clear notice identifying  the goods (RR No; Originating & destination station and date  of booking) should be received by the Railway Administration  (GM/CCM/CC0)   within   six   months   from   the   date   of   such  payment   or   the   date   of   delivery   of   such   goods   at   the  destination station, whichever is later.  A mere complaint that  a particular party was being over charged can not be taken as a  notice under section 106(3).  In case of claim for compensation  for   the   loss,   destruction,   damage,   deterioration   or   non­ delivery of goods, a notice should be received within a period  of six month from the date of entrustment of goods.
3. It is further clarified that GMs have been delegated powers by  Railway Board vide above referred letters for settlement of only  time barred Goods compensation claims, and refund of over  charge, which are barred by limitation as per section 17(1) (a)  of the Railway Claims Tribunal   Act 1987.   These powers are  subject to compliance of provisions contained in Section 106  of the Railways Act, 1989.
4. The   limitation   period   for   filling   of   a   claim   for  damage/deficiency/non   delivery   or   refund   of   overcharge   is  three years from the date of entrustment of goods to Railway  for carriage, or payment of such overcharge, as per the Section  17(1)(a) of the Railway Claims Tribunal Act 1987.   However,  15 W.P. NO. 469/2009 and others this is subject to compliance of the provisions of  Section 106  of the Railway Act, 1989.
5. In   case   a   customer   has   given   a   valid   notice   as   per   the  provisions of Section 106 of Railways Act 1989, but could not  approach   Railway   Claims   Tribunal   within   three   years,   the  General   Manager   of   the   concerned   Railway   Zone   can   settle  such   claims   on   merits   of   the   case.     However,   these   powers  delegated to General Managers for settling suit barred claims/ claims for refund of over charge are subject to receipt of a valid  notice,   as   per   the   provisions   of   section   106   of   the   Railways  Act,1989.
6. In case a customer has failed to give a valid notice to Railway  administration,   as   per   the   provisions   of   Section   106   of   the  Railways Act 1989, he can not claim a relief from the General  Manager and also will not get any relief from Railway Claims  Tribunal/any   other   court,   as   compliance   of   section   106   is  mandatory in nature.
7. However,   in   case   of   compensation   claims   for   damage,  deficiency     or   non   delivery   of   goods,   the   interpretation   of  'notice'   is   liberal   in   the   Act.     As   per   Section   106(2)   of   the  Railway Act 1989, any information demanded or enquiry made  in   writing   or   any   complaint   made   in   writing   to   any   of   the  Railway   Administrations   within   the   stipulated   time   period  with particulars sufficient to identify the goods, shall for the  purpose of this section, be deemed to be a notice of claim for  compensation.
8. In view of the above, notwithstanding anything contained in  Board's   circular   letters   referred   to   above,   any   claim   for  compensation   or   refund   of   overcharge   beyond   six   month  becomes   barred   by   limitation   by   operation   of   the   provision  contained   in   Section   106   of   the   Railways   Act,   1989   and   the  Railway administration has no power to entertain any time­ barred claim in absence of any provision in this regard in the  Railways Act itself. 
16 W.P. NO. 469/2009 and others
9. As   such,   Board's   letters   referred   to   above   are   hereby  withdrawn with immediate effect. 
10.This issues with the concurrence of the Finance of Ministry of  Railways.
11.Please acknowledge receipt of this letter.

(S.R. Sett) Director Traffic Commercial (Claims),        Railway Board."

23. Close reading of the aforesaid circular reveals that, the same is  clarificatory   and   withdraws   the   circular   dated   11.1.1995   from   a  prospective     date   but   not   the   powers   conferred   on   the   General  Manager.   The General Manager still enjoys the power to consider  time   barred   claims   for   refund   of   excess   freight   and   goods  compensation claims.

24. Since   the   circular   dated   22.2.2010   is   not   effective   from   a  retrospective   date   and   the   right   having   accrued   in   favour   of  petitioner   for   consideration   of   time   barred   claim   for   refund   of  overcharge  vide   circular   dated   11.1.1995,   the  respondent  Railways  are   not   justified   in   their   stand   that   the   General   Zonal   Manager  doesnot   have   the   power   to   consider.     Since   the   claim   of   the  petitioner   was   declined   much   before   advert   of   circular   dated  22.2.2010,   when   the   circular   dated   11.1.1995   was   in   vogue.     The  General Manager being bound by the said circular dated 11.1.1995  was under an obligation to have considered even a time barred claim  for refund of overcharge.

25. In   respect   of   retrospectivity   of   the   circular,   it   is   held   in   Sri  Vijayalakshmi   Rice   Mills,   New   Contractors   v.   State   of   Andhra  Pradesh (AIR 1976 SC 1471), that:

17 W.P. NO. 469/2009 and others

5. .... ...It is a well recognized rule of interpretation that in  the absence of express words or appropriate language from  which   retrospectivity,   may   be   inferred,   a   notification   takes  effect from the date it is issued and not from any prior date. 

The principle is also well settled that statutes should not be  construed   so   as   to   create   new   disability   or   obligations   or  impose   new   duties   in   respect   of   transactions   which   were  complete at the time the Amending Act came into force. (See  Nani Gopal Mitra v. State of Bihar, [(1969) 2 SCR 411] = (AIR  1970 SC 1636).

26. In   Chairman,   Railway   Board   and   others   v.   C.R.  Rangadhamaiah and others (AIR 1997 SC 3828), it is held:

"24.   In   many   of   these   decisions   the   expressions   "vested  rights"   or   "accrued   rights"   have   been   used   while   striking  down   the   impugned   provisions   which   had   been   given  retrospective operation so as to have an adverse effect in the  matter of promotion, seniority, substantive appointment, etc.  of the employees. The said expressions have been used in the  context of a right flowing under the relevant rule which was  sought   to   be   altered   with   effect   from   an   anterior   date   and  thereby taking away the benefits available under the rule in  force at that time. It has been held that such an amendment  having retrospective operation which has the effect of taking  away a benefit already available to the employee under the  existing rule is arbitrary, discriminatory and violative of the  rights   guaranteed   under   Articles   14   and   16   of   the  Constitution. We are unable to hold that these decisions are  not in consonance with the decisions in Roshan Lal Tandon  (AIR   1967   SC   1889)   (supra);   B.   S.   Yadav   (AIR   1981   SC   561)  (supra)   and   Raman   Lal   Keshav   Lal   Soni   (AIR   1984   SC   161)  (supra)."

27. The aforesaid decision is though in the realm of the service  conditions, however, has the relevance in the context of accrual of  right in favour of petitioner vide circular dated 11.1.1995.  In the case  18 W.P. NO. 469/2009 and others at hand the right of the petitioners' claim for refund of time barred  dues   towards   overcharge   being   covered   by   the   notification   dated  11.1.1995, the respondents were not justifying in not referring the  same   to   the  General  Manager  who   was   empowered   to   decide  the  time barred claim.

28. In   view   whereof   while   holding   that   the   claim   of   excess  payment   of   freight   charge   being   a   claim   for   overcharge   and   is  governed by the provisions contained under Section 106 of 1989 Act,  and   that   the   circular   dated   11.1.1995   issued   by   Railway   Board   in  purported exercise of its powers under Section 3 of 1905 Act which  empowered the General Manager to take into consideration the time  barred claim for refund of overcharge as per the circular in existence  then   and   subsequent   circular   dated   22.2.2010   being   not   effective  from retrospective date will not abdicate the General Manager of his  powers as it existed in the year 1995, it is directed that the General  Manager shall consider the claim of the petitioner for refund of time  barred claim towards overcharge and shall pass reasoned and cogent  order   while   taking   into   consideration   the   contention   of   the  petitioner   qua   Section   61   of   1989   Act.     The   impugned   order   is  accordantly quashed.  

29. The petition is allowed to the extent above.  There shall be no  costs.

 (SANJAY YADAV) JUDGE Vivek Tripathi