M/S Sadguru Engineers And Allied Service PVT LTD vs. The Union Of INDIA And 3 Ors

Held

The Court held that the second appeal was not entertained by the appellate authority on two grounds: failure to deposit the unwaived Demurrage Charges and the absence of a condonation of delay application. The Court noted that the Consolidated Guidelines require an appeal to be preferred within 30 days and the unwaived amount to be deposited before filing an appeal for waiver. However, given that the petitioner has since deposited the entire amount and the writ petition has been pending, the Court allowed the petitioner to file a fresh appeal against the order dated March 18, 2019, seeking full waiver, along with an application for condonation of delay. The appellate authority is directed to consider this fresh appeal on its merits and dispose of it with a speaking order within 30 days, granting a personal hearing if requested. Furthermore, the Court directed the release of the 199 bitumen barrels held as lien, as the petitioner has deposited Rs. 10,01,228/- against the outstanding amount, securing the railways' interest.

Facts

The petitioner, M/s Sadguru Engineers and Allied Service Pvt Ltd, a Carrying & Forwarding Agent for Indian Oil Corporation Limited, was engaged in handling bitumen drums at Salchapra Railway Station. On February 28, 2019, a rake of 42 wagons containing bitumen drums was placed, and the petitioner deposited Rs. 1,71,990/- as security for unloading. On March 2, 2019, the Commercial Supervisor (Goods) issued a bill for Rs. 1,63,800/- as Demurrage Charges plus Rs. 8,190/- GST. The petitioner appealed for waiver, and the respondent authorities waived 15% of the Demurrage Charges, directing payment of the remaining amount. The petitioner appealed again for full waiver, which was not entertained by the Chief Commercial Manager (CCM) on grounds of non-deposit of the unwaived amount and delay. Subsequently, a notice dated October 30, 2020, informed the petitioner of an outstanding Rs. 9,59,550/- for Demurrage and Wharfage Charges, threatening public auction of 199 bitumen barrels held as lien. Aggrieved, the petitioner filed a writ petition.

Key Issues

1. Whether the second appeal preferred by the petitioner against the order granting only 15% waiver of Demurrage Charges was rightly not entertained by the appellate authority on the grounds of non-deposit of the unwaived amount and absence of a condonation of delay application? Petitioner's contention: The petitioner argued that there were sufficient grounds to urge the second appeal on merits, citing incessant rain on February 28, 2019, as the reason for the delay in unloading. They also stated that the entire amount has since been deposited. They relied on the Consolidated Guidelines on Demurrage and Stabling, Waiver and Write Off issued by the Ministry of Railways. Revenue's contention: The respondent railways argued that the second appeal was not entertained because the petitioner failed to deposit the unwaived Demurrage Charges and did not file an application for condonation of delay beyond 30 days, as stipulated in the Consolidated Guidelines. They admitted the appeal was not considered on merits.