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2025 Supreme(Gau) 1058

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MARLI VANKUNG, J. 
Union Of India - Appellant 
Versus
M/s G.P. Sales Corporation - Respondent
MC 682 of 2012, MFA 19 of 2012
Decided On : 16-05-2025

Advocates Appeared:
For the Appellant : MR.N K DAS, MR.B SARMAH, MS B DEVI, MS.R R BORAH, MS.K KALITA, MS. M CHATTERJEE, MRS. UMA CHAKRABORTY
For the Respondent: MR.B MAHESHWARI, MR.K P MAHESWARI, MR.A GOYAL,MR.A CHOUDHURY

The railway administration is liable for damages unless proven otherwise, even when consigned goods display inherent defects during transit.

Headnote:(A) Railway Claims Tribunal Act, 1987 - Section 23 - Railway Act, 1989 - Sections 65, 93, 106, and 110(a) - Claim for compensation for damaged cement bags - Tribunal awarded Rs. 7,51,025/- for 2731 damaged bags based on Rs. 275/- per bag, which was contested by the appellant, claiming non-liability due to loading procedures not followed and inherent defects in goods - Tribunal found substantial evidence of damage while in railway custody, thus applicable liability established under statutory provisions. (Paras 2, 3, 15, 21, 30, and 34)

Facts of the case:
The respondent claimed compensation for 2731 bags of cement damaged during transit, arguing that the railway was liable due to negligence and improper handling of the consignment. The appellants contended that the loading was unmonitored and that inherent defects caused damage.

Findings of Court:
The court upheld the tribunal's decision, confirming that the railway carries responsibility unless sufficient proof of due diligence can be demonstrated.

Issues: 1. Is the awarded sum a consent decree? 2. What is the liability regarding the damage caused? 3. Was there negligence on part of the railway?

Ratio Decidendi: The court ruled that the claim was not a consent decree as there was no mutual agreement on settlement; it emphasized that the railway's liability prevails unless it unequivocally proves careful handling during transit.

Result: Appeal dismissed and tribunal's order upheld.

Table of Content
1. key facts of the case and initial claims. (Para 1)
2. claim for damages on consignment. (Para 2 , 3 , 4)
3. arguments on liability and loading supervision. (Para 5 , 7 , 8 , 10 , 11 , 15)
4. court findings on service of notice. (Para 6 , 12 , 13 , 18 , 19)
5. counsel's submissions addressing the liability and responsibility. (Para 9)
6. arguments presented by the appellant. (Para 14)
7. determination of consent decree status. (Para 21 , 22 , 23 , 24)
8. interpretation of railway liability laws. (Para 25 , 26 , 27 , 30 , 31)
9. final judgment and dismissal of appeal. (Para 32 , 33 , 34)

JUDGMENT :

MARLI VANKUNG, J.

Heard Mrs. U. Chakraborty, learned Special Senior Railway Advocate for the appellant. Also heard Ms. M. Sharma, learned counsel for the respondent/claimant.

2. This is an appeal filed under Section 23 of the Railway Claims Tribunal Act, 1987 against the Judgment & Order dated 29.11.2011, passed by the Railway Claims Tribunal, Gauhati Bench in Case No. O.A-1/33/2010 filed by the present respondent as the applicant, claiming compensation at the rate of Rs. 348.75/- per bag for 2731 bags of cement, which were damaged during the trans-shipment of the said goods.

3. The learned Claims Tribunal had allowed the claim application and ordered that the claimant/respondent was entitled to get a sum of Rs. 7,51,025/- along with Rs. 5709/- as application fee and Rs. 2000/- as advocate fee. The appellant/ Railway was directed to pay the decreetal amount to the claimant/respondent within 2 (two) months from the date of the impugned order, failing which the amount was to carry simple interest at the rate of 6% per annum till the date of realization. Aggrieved, the N.F. Railway has filed the instant appeal.

4. Brief facts of the case is that the respondent had filed a claim application that a consignment of cement containing 25,140 bags of cement was booked under the Railway Risk Rate of freight under Invoice/R.R. No. 06/212000715 dated 28.07.2009, which was made over to the Railway Administration for its safe carriage and delivery to the consignee from LIPL/AKT to SPTR intercepted at NLP at Railway Risk Rate. The said train note consignment was shipped from BG to MG at Railway Trans-shipment Point at Rangiya for MG destination SPTR (Silapathar). According to the claimant/respondent, all the BG wagons of the train arrived at the trans-shipment point without having Railway seals and card labels and all the BG wagons were in open door condition. The suit consignment also arrived at the destination point after a delay of more than 70 days without seals and door opened condition. At the time of unloading, the MG wagons were found roof leaky and in a body broken condition as a result of which 5745 bags of cement were found wet and in a damaged condition. The damage bags were kept in the Railway premises for granting assessment delivery. On 17/18 10.2009, the loss was assessed by the Railway after a delay of about another 20 days and as such, the total loss was estimated to the cost of 2731 bags of cement. Accordingly, the respondent/claimant filed the application claiming a sum of Rs. 9,52,436/- along with application fee and advocate’s fee and pendant elite interest.

5. The claim application was contested by the Railway by filing their written statement. It was the contention of the N.F. Railways that the service of notice under Section 106 of the RAILWAYS ACT , is not valid as it was served by some Kedar Prasad on behalf of the M/S G.P. Sales Corporation without any power of attorney. It was also contended that the loading of the suit consignment was not supervised by the appellant/N.F. Railways. The N.F. Railway also contended that the subject consignment arrived at the shipment point with seal rivet intact condition without any interference en-route and received 115 bags damaged for which the N.F. Railway was not liable for the alleged loss. The N.F. Railway contended that the alleged damage to the goods/cement bag was due to in

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