Supreme Court Confirms Railways Can to Levy Penalty for Misdeclaration of Goods Even After Delivery

The Supreme Court has ruled that Indian Railways can impose penalties for misdeclaration of goods under Section 66 of the Railways Act, 1989, even after the delivery of consignments.

The bench clarified that Section 66(4) does not restrict the timing of penalty imposition, allowing Railways to recover correct charges before or after delivery, unlike Sections 73 and 7,8, which require pre-delivery penalties. 

The Court overturned the Gauhati High Court’s contrary view that limited the Railway's power before delivery, observing that Section 66 applies separately and “at either stage”. 

The judgment restores demand notices issued by the Railways and reinforces its authority to deter false declarations.