(1) If any goods entrusted for carriage to any notified station by a train intended solely for the carriage of goods are not removed from such station by a person entitled to do so within a period of seven days after the termination of transit thereof at such station, the railway administration may, subject to the provisions of sub-section (2), sell such goods by public auction and apart from exhibiting, in accordance with the provisions of sub-section (3) of section 89, a statement containing a description of such goods, it shall not be necessary to give any notice of such public auction, but the date on which such auction may be held under this sub-section may be notified in one or more local newspapers, or where there are no such newspapers, in such manner as may be prescribed:
Provided that if at any time before the sale of such goods under this sub-section, the person entitled thereto pays the freight and other charges and the expenses due in respect thereof to the railway administration, he shall be allowed to remove such goods.
(2) If any goods which may be sold by public auction under sub-section (1) at a notified station, being essential commodities, are required by the Central Government or the State Government for its own use or if the Central Government or such State Government considers that it is necessary for securing the availability of all or any such essential commodities at fair prices so to do, it may, by order in writing, direct the railway servant in-charge of such auction to transfer such goods to it or to such agency, co-operative society or other person (being an agency, co-operative society or other person subject to the control of the Government) engaged in the business of selling such essential commodities as may be specified in the direction.
(3) Every direction issued under sub-section (2) in respect of any essential commodity shall be binding on the railway servant to whom it is issued and the railway administration and it shall be a sufficient defence against any claim by the person entitled to the goods that such essential commodities have been transferred in compliance with such direction:
Provided that–
(a) such direction shall not be binding on such railway servant or the railway administration
(i) if it has not been received by the railway servant sufficiently in time to enable him to prevent the sale of the essential commodities to which it relates; or
(ii) if before the time appointed for such sale, the person entitled to such goods pays the freight and other charges and the expenses due in respect thereof and claims that he be allowed to remove the goods; or
(iii) if the price payable for such goods (as estimated by the Central Government or, as the case may be, the State Government) is not credited to the railway administration in the prescribed manner and the railway administration is not indemnified against any additional amount which it may become liable to pay towards the price by reason of the price not having been computed in accordance with the provisions of sub-section (4);
(b) where directions are issued in respect of the same goods both by the Central Government and the State Government, the directions received earlier shall prevail.
(4) The price payable for any essential commodity transferred in compliance with a direction issued under sub-section (2) shall be the price calculated in accordance with the provisions of sub-section (3) of section 3 of the Essential Commodities Act, 1955 (10 of 1955).
Provided that–
(a) in the case of any essential commodity being a food-stuff in respect whereof a notification issued under sub-section (3A) of section 3 of the Essential Commodities Act, 1955 (10 of 1955) is in force in the locality in which the notified station is situated, the price payable shall be calculated in accordance with the provisions of clauses (iii) and (iv) of that sub-section;
(b) in the case of an essential commodity being any grade or variety of foodgrains, edible oilseeds or edible oils in respect were of no notification issued under sub-section (3A) of section 3 of the Essential Commodities Act, 1955 (10 of 1955), is in force in the locality in which the notified station is situated, the price payable shall be calculated in accordance with the provisions of sub-section (3B) of that section;
(c) in the case of an essential commodity being any kind of sugar in respect whereof no notification issued under sub-section (3A) of section 3 of the Essential Commodities Act, 1955 (10 of 1955), is in force in the locality in which the notified station is situated, the price payable shall, if such sugar has been booked by them producer to himself, be calculated in accordance with the provisions of sub-section (3C) of that section.
Explanation.— For the purposes of this clause, the expressions “producer” and “sugar” shall have the meanings a signed to these expressions in the Explanation to sub-section (3C) of section 3, and clause (e) of section 2 of the Essential Commodities Act, 1955 (10 of 1955), respectively.
Simplified Explanation
Section 90 of The Railways Act, 1989, deals with the disposal of goods at notified stations that remain unclaimed or unremoved within a specified period. This section outlines the procedure for public auctioning of such goods, special provisions for essential commodities, and rules for pricing when such commodities are requisitioned by the government. Below is a detailed explanation:
1. Public Auction of Unremoved Goods
(1) Timeframe for Removal
- If goods at a notified station are not removed within seven days of their arrival, the railway administration has the authority to sell these goods via public auction.
- A public statement of such goods is displayed at the station under Section 89(3), but no individual notices to consignees are required.
- The auction date is published in local newspapers or, where unavailable, as prescribed by rules.
Right to Remove Before Auction
- Before the auction, the rightful owner can reclaim the goods by:
- Paying all freight charges, other applicable fees, and expenses incurred by the railway administration.
2. Provisions for Essential Commodities
(2) Government Requisition
- If the unremoved goods are essential commodities, the Central or State Government can requisition them for:
- Government use or distribution at fair prices to ensure public welfare.
- This requisition can also extend to government-controlled agencies, cooperative societies, or other authorized distributors.
Compliance by Railway Officials
- Railway officials conducting the auction are bound to transfer the goods as per the government’s directive.
Exceptions to Compliance
- Railway officials are not obligated to comply if:
- The directive is not received on time to stop the auction.
- The rightful owner reclaims the goods before the auction by paying due charges.
- The estimated price of the goods is not deposited in advance, and the railway administration is not indemnified against further liabilities.
Conflicting Directives
- If directives are issued by both the Central and State Governments for the same goods, the directive received first will prevail.
3. Pricing of Essential Commodities
(4) Price Determination
- The price for requisitioned essential commodities is determined under the Essential Commodities Act, 1955:
- General Rule: The price is calculated per Section 3(3) of the Essential Commodities Act.
- Special Cases:
- For foodstuffs, the price is calculated based on specific provisions under Section 3(3A) or Section 3(3B), depending on whether government notifications are in force.
- For sugar booked by the producer, the price is determined under Section 3(3C) of the Essential Commodities Act.
Explanation of Terms
- Producer: As defined in the Essential Commodities Act.
- Sugar: Includes various forms as defined under the Essential Commodities Act.
4. Key Features and Implications
- Transparency:
- Public auctions and displayed statements ensure transparency in the disposal process.
- Safeguard for Owners:
- Owners can reclaim goods by paying dues before the auction.
- Special Focus on Essential Commodities:
- Government intervention ensures availability of critical goods at fair prices during shortages.
- Protection Against Claims:
- Railway officials and administrations are protected against claims from owners when goods are requisitioned under government directives.
- Prevention of Congestion:
- Quick disposal of goods ensures that notified stations remain functional and prevent logistical delays.
5. Conclusion
Section 90 provides a systematic approach to managing unclaimed goods at notified stations. It balances the need for operational efficiency with provisions for protecting public interest, especially regarding essential commodities. The section emphasizes timely communication, government oversight, and accountability in handling and disposing of goods.
