UNION OF INDIA vs E.I.D. PARRY (INDIA) LTD.

The Supreme Court held that the High Court erred in declaring the Goods Tariff Rule as ultra vires the Railways Act, 1890, as this issue was not part of the pleadings and thus could not be decided. The Court emphasized that the trial court's decree for demurrage charges was valid since the entire group of wagons was treated as one unit under the applicable rules. Consequently, the judgment of the High Court was set aside, and the trial court's decree was restored.