Case Note & Summary
The Supreme Court of India considered an appeal by special leave filed by Union of India against an order of the Division Bench of the Guwahati High Court in a batch of writ petitions. The dispute concerned the railway administration's preferential traffic scheme for allotment of goods wagons for carriage of coal and other priority articles. The respondents, including M/s. Sharma Coal Co., had challenged the deletion of non-sponsored coal from the priority categories under the scheme, contending that the deletion violated Article 19(1)(g) of the Constitution. The High Court did not set aside the deletion but directed that after all priority articles were exhausted, any unutilised wagons should be kept at the disposal of non-priority articles for carriage. The Union of India appealed against this direction. The Railway administration had prepared a preferential traffic scheme by General Order No.71, classifying priority articles from A to E. Sponsored coal movement was Category C, non-sponsored coal was Priority E. By proceedings dated 1 March 1989, the Railways modified the scheme and issued General PTS Order No.77 with effect from 1 April 1989; priorities were redetermined and non-priority coal item E was deleted from the priority scheme. The respondents and others challenged the deletion before Guwahati High Court. The Division Bench, without disturbing the validity of the order, directed that after all priorities enumerated in the scheme were exhausted and if wagons remained unutilised, the unutilised wagons may be kept at disposal of non-priority articles for carriage. The Union of India filed special leave petition, and the Supreme Court granted leave. The Supreme Court observed that in Order No.75, priorities A to E included sponsored coal and non-sponsored coal in Priority E for allotment of wagons. Non-priority item E was subsequently deleted as per paragraph E of the special leave petition: "the Order No.77 relates to PTS for allotment of wagons which came into force from 16.7.86, but non-sponsored coal referred to in priority E of PTS No.75 was removed". Thus, non-priority coal was removed from priorities A to E. The High Court intended to direct that if after wagons allotted for movement to priority articles remained available, the same may be allotted for non-priority articles for carriage. The Supreme Court held that there was no impediment in the way of the administration to give such allotment, instead of keeping the wagons idle. It noted that such allotment would be in the commercial interest of the Railway administration. The Supreme Court disposed of the appeal with no order as to costs, effectively affirming the High Court's direction. It held that the railway administration could allot unutilised wagons to non-priority articles after priority movements were completed.
Headnote
A) Constitutional Law - Freedom of Trade and Commerce - Article 19(1)(g) of Constitution of India - Challenge to deletion of non-priority coal from Preferential Traffic Scheme - Railway administration's deletion of non-priority coal from priority categories was challenged as violative of Article 19(1)(g), but High Court upheld scheme validity and only directed that surplus wagons after priority allotments be made available to non-priority articles - Supreme Court held that there is no impediment in the railway administration allotting unutilised wagons to non-priority articles as it would be in commercial interest (Paras 1-2).
Issue of Consideration
Whether the High Court's direction requiring unutilised railway wagons after serving priority articles to be made available to non-priority articles was valid; whether deletion of non-priority coal from the preferential traffic scheme violated Article 19(1)(g) of the Constitution.
Final Decision
The Supreme Court disposed of the appeal, holding that there is no impediment in the railway administration allotting unutilised wagons to non-priority articles after priority allotments are exhausted, as it would be in the commercial interest of the Railway administration. No costs.
Law Points
- Preferential traffic scheme for railways
- priority categories A to E
- deletion of non-priority coal from scheme
- direction to allot surplus wagons to non-priority articles
- no legal impediment in allotting unutilised wagons
- commercial interest of railway administration
- Article 19(1)(g) of Constitution
