( 1 ) THIS reference to a larger Bench is made because two divergent constructions of section 77-C (1) of the Indian Railways Act, 1890 (hereinafter referred to as the Act) seem to be possible. One construction results in making the Railway Administration liable for any damage, deterioration, leakage or wastage of goods carried by it, while the other construction exempts the Railway from such liability. We are to consider which of the two construction is to be preferred and why.

SUB-SECTIONS (1) and (4) of section 77-C of the Act, which alone are relevant, are reproduced below :

" (1) When any goods tendered to a railway administration to be carried by railway-

(A) are in a defective condition as a consequence of which they are liabl eto damage, deterioration, leakage or wastage, or

(B) are either defectively packed or packed in a manner not in accordance with the general or special order, if any issued under sub-section (4), and as a result of such defective or improper packing are liable to damage. deterioration, leakage or wastage, and the fact of such condition or defective or improper packing has been recorded by a sender or his agent in the forwarding note, then,