Section 39: Reference to the Tribunal

Notwithstanding anything contained in section 37, the Central Government may make a reference to the Tribunal in respect of any of the matter specified in that section and where any such reference is made in respect of any such matter, the Tribunal shall make an inquiry into that matter and submit its report thereon to the Central Government.

Simplified Explanation

Section 39 of the Railways Act, 1989 provides a mechanism through which the Central Government can refer specific matters to the Railway Claims Tribunal (RCT) for inquiry. This provision allows the government to seek the Tribunal’s expertise in situations where it is necessary to investigate certain issues, even if those issues are not typically under the Tribunal’s jurisdiction as outlined in Section 37.

Detailed Explanation:

1. Central Government’s Power to Make a Reference:
   • Authority to Refer: Section 39 empowers the Central Government to refer certain matters to the Railway Claims Tribunal, even if those matters fall under the exclusions listed in Section 37.
   • Matters Not Typically Within Jurisdiction: Section 37 outlines matters such as classification of commodities, fixation of fares, and charges (wharfage, demurrage, and lump sum rates) that the Tribunal is not ordinarily authorized to address. However, Section 39 provides the Central Government the discretion to refer such issues to the Tribunal for investigation.
   • Exception to Section 37’s Limitations: This reference mechanism allows for a more flexible approach, as the government can involve the Tribunal in inquiries about issues beyond its usual jurisdiction when it sees fit.
2. Tribunal’s Role Upon Receiving a Reference:
   • Inquiry and Report: When the Central Government makes a reference to the Tribunal, the Tribunal is required to conduct an inquiry into the matter and submit a report to the government with its findings and recommendations.
     • The inquiry will likely involve gathering evidence, hearing submissions from relevant parties, and examining the issue at hand in detail.
     • The Tribunal does not make a binding decision, but rather provides a report that the Central Government can consider when making its final decision.
3. Nature of the Reference:
   • The reference is a form of investigation into specific matters rather than a direct adjudication of a legal dispute. The Tribunal, acting as an investigative body, assesses the issue, gathers facts, and produces a detailed report for the government.
   • This could involve technical or regulatory issues that require expert examination or public input, and the Tribunal’s role is to provide an informed perspective to the Central Government for decision-making.

Why is this Section Important?

• Flexibility in Handling Railway Issues: Section 39 allows the Central Government to leverage the Tribunal’s expertise even in matters outside its usual scope. This flexibility helps ensure that complex or contentious issues related to the railway system are thoroughly examined by an impartial body.
• Government Decision-Making: The provision helps inform government decisions by providing detailed insights into specific issues. The Tribunal’s inquiry and report can guide the Central Government in making policy or regulatory decisions that are based on facts, data, and expert recommendations.
• Transparency and Accountability: By referring matters to the Tribunal, the government ensures that inquiries are conducted in a transparent manner. The Tribunal’s role as a neutral body adds credibility to the process, ensuring that the final decision is grounded in thorough analysis and inquiry.

Legal and Practical Implications:

• Advisory Role of the Tribunal: The Tribunal’s role here is advisory. It provides the government with its findings, which may or may not influence the government’s final decision. Legal professionals and businesses must understand that the Tribunal’s report is not a binding ruling but a form of expert advice for the government.
• Government Oversight: The reference process allows the Central Government to maintain oversight over railway-related issues that may require more investigation or consideration, even if those issues are outside the usual remit of the Tribunal.
• Practical Impact on Railway Operations: For issues involving regulatory decisions such as pricing, charges, or commodity classification, the government may rely on the Tribunal’s inquiry to ensure that the decisions are in line with industry standards and are fair to all parties involved.

Conclusion:

Section 39 of the Railways Act, 1989 grants the Central Government the authority to refer certain matters, even those outside the Tribunal’s usual jurisdiction, to the Railway Claims Tribunal for investigation. Upon receiving a reference, the Tribunal conducts an inquiry and submits a report to the government. This mechanism allows the government to seek expert input on specific issues, ensuring that decisions are well-informed and grounded in an impartial examination of the facts. Although the Tribunal does not issue binding decisions in such cases, its inquiry serves as a valuable tool for shaping policy and regulatory decisions in the railway sector.