Section 86: Sales under sections 83 to 85 not to affect the right to suit

Notwithstanding anything contained in this Chapter, the right of sale under sections 83 to 85 shall be without prejudice to the right of the railway administration to recover by suit, any freight, charge, amount or other expenses due to it.

Simplified Explanation

Section 86 is a provision designed to clarify that the railway administration’s right to sell goods under Sections 83 to 85 does not limit or take away its right to recover dues through legal means. Here’s a detailed breakdown:

1. Context and Purpose

• Sections 83 to 85 empower the railway administration to sell consignments in certain circumstances, such as:
  • Unclaimed or undelivered goods (Section 83).
  • Perishable goods (Sections 83 and 85).
  • Perishable goods affected by interruptions in transportation (Section 85).
• However, selling goods and recovering dues from the sale proceeds is not the only recourse available to the railway administration. Section 86 ensures that the administration retains its legal right to recover any remaining dues.

2. Key Provisions

• “Notwithstanding anything contained in this Chapter”:
  • This phrase signifies that Section 86 overrides other provisions in this chapter of the Act, reinforcing the railway administration’s rights.
• “Right of sale without prejudice to the right to suit”:
  • Even if the railway administration sells goods under Sections 83 to 85, this does not restrict them from:
    • Filing a lawsuit to recover any outstanding freight charges, other amounts, or expenses due to them.
    • Pursuing legal action against the consignor, consignee, or any other liable party.

3. Practical Implications

For the Railway Administration:

• Additional Remedies:
  • Selling the goods is a practical measure for recovering dues, but if the sale proceeds are insufficient, the administration can initiate legal proceedings to recover the balance.
• Flexibility in Enforcement:
  • This section ensures that selling goods does not waive the right to sue, allowing the administration to enforce its claims comprehensively.

For Consignors/Consignees:

• Potential Legal Liability:
  • If the sale proceeds are inadequate to cover all dues, the consignor or consignee might still be legally liable for the shortfall.
• Protection of Rights:
  • This provision encourages the consignor/consignee to settle dues promptly to avoid litigation.

4. Example Scenario

Suppose a consignor ships a container of goods but fails to pay the required freight charges. The goods remain unclaimed, and the railway administration sells them under Section 83.

• The sale proceeds cover only part of the outstanding freight charges and expenses.
• Under Section 86, the railway administration can still file a lawsuit against the consignor to recover the remaining amount.

5. Significance

• Safeguards Railway Revenues: By allowing dual recourse (sale and suit), Section 86 protects the financial interests of the railway administration.
• Clarifies Legal Position: It eliminates ambiguity about whether selling goods limits the right to sue for dues.
• Encourages Compliance: Consignors and consignees are incentivized to pay freight charges promptly to avoid additional liability.

Conclusion

Section 86 ensures that the sale of goods by the railway administration under Sections 83 to 85 is not the final or exclusive remedy. The administration retains the right to recover any shortfall through legal action, providing a robust mechanism for addressing unpaid dues and protecting its financial interests.