Railways Need To Upgrade Themselves With Technology To Avoid Disputes On Consignment Excess Weight : Supreme Court

The Supreme Court recently observed that the Railways must update themselves with the latest technology to avoid disputes regarding charges for excess weight of cargo consignments.The Court suggested using a mechanism like automatic videography of the loaded weight along with the weight measurement at the time of off-loading, which can save parties from avoidable litigation.A bench comprising Justice Surya Kant and Justice NK Singh made this observation while deciding an appeal filed by the Railways in 2018 against a 2017 full bench decision of the Gauhati High Court, which held that an opportunity of hearing ought to be given before imposing penalty on account of excess weight being detected in a consignment.The issue related to the demand notice of Rs.10,61,250/- issued to Megha Technical and Engineers Pvt Ltd for excess weight for a rake consignment of dry fly ash booked in 2010.The Court noted that the appeal had become virtually academic as the penalty was subsequently paid by the respondent. The Court also observed that it was not possible for the railways to issue a show-cause notice before imposing a penalty for excess weightage. Further, it was held in Jagjit Cotton Textile Mills vs. Chief Commercial Superintendent, N.R. and others, (1998) 5 SCC 126 that a demand for penal freight without prior notice was not violative of Article 14 of the Constitution."In the very nature of things, on raising such a demand when excess weightage has been detected at the time of off-loading, it would be practically difficult, if not impossible, for the appellant-Railways to issue a show-cause notice to the consignor or consignee and to hold a mini-trial to determine the question of excess weightage and consequential levy of compensatory charges," the Court observed.The Court then made the suggestion for technological upgradation."Nevertheless, the appellant-Railways needs to update and upgrade themselves with the advancement of technology. There is no gainsay that a mechanism like automatic videography of the loaded weight along with the weight measurement at the time of off- loading, can save the parties from easily avoidable litigation. In the event any consignor or consignee disputes the liability towards charges for excess weightage, such electronically-collected proof can be supplied to redress the grievances. We are quite sure that, by now, the Railways must have introduced some effective scientific method to meet with such challenges."The Court went on to add that it was only making an illustrative suggestion to sensitise the Railways."However, what we have observed above is only on an illustrative basis and to sensitize the Railways. We hope and trust that with a view to incentivize its consumers and customers, the Railways will continue to upgrade regularly."As regards the High Court's judgment, the Court set it aside, saying that it has now become "obsolete and redundant."Case Title : Union of India v. Megha Technical and Engineers Pvt LtdCitation : 2025 LiveLaw (SC) 670Click here to read the order

Railways Need To Upgrade Themselves With Technology To Avoid Disputes On Consignment Excess Weight : Supreme Court

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Railways Need To Upgrade Themselves With Technology To Avoid Disputes On Consignment Excess Weight : Supreme Court

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