SUPREME COURT URGES RAILWAYS TO EMBRACE TECHNOLOGY TO PREVENT DISPUTES OVER EXCESS CONSIGNMENT WEIGHT:

The Supreme Court recently emphasized the need for the Indian Railways to modernize and adopt the latest technology to prevent disputes arising over charges imposed for excess weight in cargo consignments. The Court recommended implementing mechanisms such as automatic videography of the loaded weight and recording of weight measurements during off-loading, which could help reduce avoidable litigation. This observation was made by a bench comprising Justice Surya Kant and Justice N.K. Singh while adjudicating an appeal filed by the Railways in 2018. The appeal challenged a 2017 full bench ruling of the Gauhati High Court, which had held that an opportunity for a hearing should be provided before levying a penalty for excess weight detected in a consignment.

The case concerned a demand notice of Rs.10,61,250 issued to Megha Technical and Engineers Pvt. Ltd. for excess weight in a rake consignment of dry fly ash booked in 2010. The Supreme Court noted that the issue had become largely academic since the respondent had subsequently paid the penalty. The Court further observed that it would not be practical for the Railways to issue a show-cause notice prior to imposing a penalty for excess weight. It also referred to the precedent established in Jagjit Cotton Textile Mills vs. Chief Commercial Superintendent, N.R. and others, (1998) 5 SCC 126, where it was held that demanding penal freight without prior notice does not violate 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."