Railways Act, 1989

90. Disposal of unremoved goods at notified stations. 

(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 there of 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 they 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 defense 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 (31) 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 food grains, edible oil-seeds or edible oils in respect whereof no notification issued under sub-section (10 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 the 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 assigned 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.

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