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1981 Supreme(Del) 52

High Court Of Delhi
NEW INDIA ASSURANCE COMPANY LIMITED - Appellant
Versus
UNION OF INDIA - Respondent
First Appeal Order 276 of 1978
Decided On : 02/09/1981

Advocates Appeared:
B.R.SABHARWAL, D.V.PATEL, P.K.Jaitely, R.K.PARASARAN, REKHA AGARWAL

Section 80 of the Railways Act, as amended by Act 39 of 1961, is a specific provision dealing with the territorial jurisdiction of suits against Railways and excludes the applicability of Section 20 of the Civil Procedure Code in such cases.

Headnote:

RAILWAYS ACT - SECTION 80 - JURISDICTION - SUIT AGAINST RAILWAYS - TERRITORIAL JURISDICTION - SECTION 20 CPC - APPLICABILITY - AMENDMENT ACT 39 OF 1961 - EFFECT.

Fact of the Case:

The plaintiff delivered a consignment of machinery at Cernac Bridge on the Western Railways Administration. The destination station was Kiratpur Saheb (in the Northern Railway Administration) which is outside the jurisdiction of Delhi Courts. Instead of six cases which were booked, 5 cases were received. The loss did not occur at Delhi. The suit was filed in Delhi courts, which have no jurisdiction over either of three places, namely where the goods were delivered or the destination station, or the place where the loss is said to have occurred.

Finding of the Court:

The court held that after the amendment of Section 80 by Act 39 of 1961, the suits for compensation against the Railways can only be instituted in a court having jurisdiction over the place in which the goods were delivered for carriage or over the place in which destination station lies or the loss or damage occurred. As none of the said places fall within the jurisdiction of Delhi Courts, the suit was wrongly filed in Delhi Courts.

Issues: Whether Section 80 of the Indian Railways Act, as amended by Parliament Act 39 of 1961, excludes the applicability of Section 20 of the Civil Procedure Code in determining the territorial jurisdiction of courts in suits against the Railways.

Ratio Decidendi: The court held that Section 80 of the Railways Act is a specific provision dealing with the territorial jurisdiction of suits to be filed against Railways and Section 20 of the Civil Procedure Code which is a general provision is inapplicable in these cases. Section 80 though it uses the expression "may" has the effect of mandatory direction, and that this provision has been made not only to assist any suitor for compensation but also to afford protection to the Railways and that the plaintiff must sue one or more particular railway administrations under Section 80 of the Act.

Final Decision: The court dismissed the appeal and upheld the order of the trial court, directing the return of the plaint to the plaintiff for presentation to a proper court.

SACHAR

( 1 ) WHAT is the effect of Section 80 of Indian Railways Act (to be called the act) as amended by Parliament Act 39 of 1961 viz-a-viz Section 20 of Civil Procedure Code is the question for decision by us. This is an appeal against the order of Sub- Judge 1st Class dated 11-7-1978 by which he directed the return of the plaint on the ground that Delhi Courts have no jurisdiction. The matter originally came up for hearing before S. S. Chadha, J. who doubted the correctness of the view expressed by Prakash Narain, J. (as his lordship then was) when disposing of preliminary objection in Suit No. 961971 decided on 8-2-72 and REFERRED TO the matter to a larger bench. That is how the matter has come up before us.

( 2 ) THE plaintiff delivered the consignment of 6 cases of machinery at Cernac Bridge on the Western Railways, Administration. The destination station was Kiratpur Saheb (in the Northern Railway Administration) which is outside the jurisdiction of Delhi Courts. Instead of six cases which were boomed 5 cases were received, It is not disputed that the loss did not occur at Delhi. That is why when the suit was filed the Railways took the preliminary objection that Delhi courts have no territorial jurisdiction in view of Section 80 of the Railways Act. This pica found favour with the trial court which held that under section 80 of the Indian Railways Act a suit can only be brought either in a court having jurisdiction over the place where the goods were delivered for carriage or over the place where the destination station lies or where the less occurred. As Delhi is not one of three places as contemplated by Sect ion 80 of the Act, Delhi Courts would not have jurisdiction. Mr. Patel, the learned counsel for the appellant naturally first relied on the decision of Prakash Narain. J. mentioned above which had held that the provisions of Section 80 of the Railways Act were not the only ones to determine the territorial jurisdiction of the courts and. that a suit could also be filed against a Railway Administration at a place where its Headquarters were situated. Now Kiratpur Saheb. the destination station though outside the jurisdiction of Delhi Courts is within Northern Railway Administration. The Headquarters of Northern Railway arc admittedly situated in Delhi. If, therefore, the test to determine the territorial jurisdiction would be the place of Headquarters of the Railway Administration which is being sued, Delhi Courts would have undoubted jurisdiction vide (AIR 1963 SC 1981) (l) Union of India and another V. Sri Ladulal Jain; wherein it was held that as the Union of India carries on the business of running Railways it could be used in the courts at a place within whose territorial jurisdiction the Headquarters of one of the Railways run by the Union of India is situated. This decision however, was given on the unamended Section 80 of the Railways Act. A very vital amendment of Section 80, however, was brought about by substitution of a new Section 80. Apart from adding the Railway Administration in which destination station lies as one of the Railway Administrations which could be sued, the following important addition was made, and in either case, the suit may be instituted in a court having jurisdiction over the place at which the passenger obtained his pass or purchased his ticket or the animals or goods were delivered for carriage, as the case may be or over the place in which the destination station lies, or the. loss, injury, destruction, damage or deterioration occurred. "

( 3 ) THE question has arisen in this case because the suit has been filed in Delhi courts which have no jurisdiction over either of three places, namely where the goods were delivered or the destination station, or the place where the loss is said to have occurred. The only justification for claiming Jurisdiction for a Delhi Court is said to be because of the destination station, Kiratpur being within the Northern Railway Administration an



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