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Allahabad HC Refuses Deemed Approval for New Railway Concrete Sleeper Plant, Dismisses Company's Plea Against Railways

Shivam Y.

The Allahabad High Court held that a pending applicant for a Railway Concrete Sleeper Plant cannot claim deemed approval or policy relaxation meant exclusively for already approved plants.

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Allahabad HC Refuses Deemed Approval for New Railway Concrete Sleeper Plant, Dismisses Company's Plea Against Railways
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The Allahabad High Court has dismissed a petition filed by M/s Calcutta Springs Limited, holding that a company seeking approval to establish a new Railway Concrete Sleeper Plant (CSP) cannot claim a "deemed approval" merely because its application is pending. The Court also ruled that the relaxation granted by the Railways for commissioning railway sidings applies only to already approved or existing CSPs, not to new applicants.

Background of the Case

M/s Calcutta Springs Limited approached the High Court seeking directions to the Ministry of Railways to grant approval for its proposed Concrete Sleeper Plant at Bilaspur, Chhattisgarh. The company also requested permission to participate in Railway tenders and argued that it should receive the benefit of revised Railway guidelines issued in May 2026, which extended the deadline for commissioning railway sidings in certain cases.

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According to the company, it had applied for approval in April 2025 and had completed almost all required formalities by March 2026. It contended that the extended timeline granted under the revised policy should also be made available to its proposed plant.

The Railways opposed the plea, submitting that the petitioner had not yet received approval to establish the plant and, therefore, could not seek the benefit meant for existing approved CSPs.

Court's Observations

A Division Bench of Justice Shekhar B. Saraf and Justice Abdhesh Kumar Chaudhary observed that approval for a Concrete Sleeper Plant involves several technical stages, including document scrutiny, inspection of machinery, testing of materials and assessment of production capability.

The Bench observed,

"This Court being bereft of any technical expertise cannot step into the shoes of the approving authority to make a technical assessment and grant approval to the petitioner."

It further held that issuing such a direction would effectively amount to granting approval through judicial intervention, which is not permissible.

The Court also noted that the revised Railway policy granting additional time to commission railway sidings was specifically intended for already approved or operational CSPs. Since the petitioner's plant had not yet been approved, it could not rely on those relaxations.

The Bench remarked,

"There is no concept of deemed approval," adding that the petitioner could not indirectly secure approval through a writ petition when the statutory approval process was still pending.

Decision

Finding no merit in the petition, the Allahabad High Court dismissed the writ petition. At the same time, it clarified that it had not expressed any opinion on the merits of the company's pending approval application and directed that the competent Railway authority should decide the application independently in accordance with law.

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Case Details

Case Title: M/s Calcutta Springs Limited Through Authorized Signatory Nirmal Kumar Gope v. Union of India Through Its Secretary, Ministry of Railways, New Delhi & Another

Case Number: WRIT - C No. 6335 of 2026

Judge: Justice Shekhar B. Saraf and Justice Abdhesh Kumar Chaudhary

Decision Date: 17 July 2026

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