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Issues Involved: Validity of demand for service charges by Municipality from Railways u/s 135 of Railways Act and Article 285 of the Constitution.
Summary: The Supreme Court granted leave in the case where the Municipality demanded service charges from the Railways for the years 1993-94 and 1994-95. The Division Bench upheld the demand, leading to this appeal. The Court referred to a previous case, Union of India v. Purna, Municipal Council, which held that Section 135 of the Railways Act is subject to Article 285 of the Constitution, restraining the Municipality from demanding such payments. The Municipality argued a contract existed between them and the Central Government, but the Court found no valid contract in this case. Despite a previous dismissal of a related case, the Court ruled that the dismissal did not constitute res judicata due to the recurring nature of the liability. Consequently, the appeal was allowed, the writ was issued as requested, and any amount already paid could not be recovered from the Municipality. No costs were awarded in this matter.
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