JAGJIT COTTON TEXTILE MILLS vs CHIEF COMMERCIAL SUPERINTENDENT N.R. & OTHERS

The Supreme Court addressed the issue of penal charges imposed by the Railways for overloading coal in goods wagons, determining that the consignees cannot be held liable for such charges if the Railways permitted overloading at the collieries. The Court emphasized that the responsibility lies with the consignors (collieries) and not the consignees. The Court ruled in favor of the appellants, ordering the refund of penal charges and prohibiting future collections from consignees under similar circumstances.