In Brief
HPCL (Hindustan Petroleum Corporation Limited) paid railway freight charges for transporting petroleum products based on a notified distance of 125 km between Asaudah and Partapur. When the Railway's computerized system (TMS) later reduced the notified distance to 100 km in February 2011, HPCL sought refund of the excess freight paid. The Railways paid claims for only the last six months before the notification correction, citing the six-month limitation in Section 106(3) of the Railways Act, 1989. The Supreme Court allowed HPCL's appeal, holding that the limitation applies only to 'overcharge' (miscalculation), not 'illegal realization' where freight was paid per a valid but subsequently corrected distance notification.
The lawyer headnote and full judgment text are available to registered users.