KANHAIYA SINGH, J.:- These two appeals involve common questions of law and have, therefore, been heard analogously, and this judgment will govern both.

2. The suit in which Second Appeal 1497 of 1957 arises was brought by the respondent for recovery from Union of India a sum of Rs.2500, being the amount of the security deposited by him with the Divisional Superintendent, Dinapur of the East Indian Railway (now the Eastern Railway) for due performance of a contract. Shortly put, the facts are these. On 25th November 1947, the defendant (sic) entered into a contract with the Divisional Superintendent for supply of 340 maunds of Zira at the rate of Rs.72/5/- per maund by 25th December, 1947, at Dinapur Reserve Department. In respect of this contract, the plainstiff deposited with the Divisional Superintendent Rs.2500 as security money. On 4th December 1947, the plaintiff booked at Jumna Bridge station 340 maunds of Zira to be delivered at Dinapur. The wagon containing the Zira, however, was despatched through inadvertence to some other place, instead of Dinapur, with the result that the wagon could not reach Dinapur earlier than 3rd March 1948. In other words, the consignment