The Municipal Corporation of the City of Ahmedabad (hereinafter referred to as 'the plaintiff') filed Civil Suit No.2448 of 1968 against the Union of India owning and representing the Western Railway (hereinafter referred to as the defendant No.1) and another in the Court of Small Causes at Ahraedabad for recovering a sum of Rs.1344.34 p. on account of damage suffered by the plaintiff's vehicle allegedly due to the gross and negligent driving by the defendant No.2 of a vehicle belonging to the defendant No.1. The suit was instituted by the plaintiff on 25th June 1968. In 1969 the Motor Vehicles Act, 1939 was amended by the Parliament. Inter alia, the amending statute - The Motor Vehicles (Amendment) Act, 1969 - has amended Section 110 which deals with the question of jurisdiction of the Claims Tribunals. Relying upon this amendment the defendant No.1 has contended that the Court of Small Causes at Ahmedabad has no jurisdiction to proceed with the suit.

2. The learned Trial Judge raised the preliminary issue in that behalf and by his order dated 17th February 1971 he held that the Court of Small Causes at Ahmedabad had jurisdiction to proceed with the suit and directed accord