RAIGARH JUTE MILLS LTD. vs EASTERN RAILWAY AND ANOTHER

The Supreme Court held that under Section 28 of the Indian Railways Act, 1890, a complaint of undue preference requires proof of competition between the goods of the complainant and those of the competitor. The appellant's claim that the railway administration offered special rates to Kanpur mills, resulting in unreasonable freight charges, was dismissed as no competition was established. The Court emphasized that the reasonableness of freight charges must consider the railway's working costs, not the appellant's geographical location or production costs.