RAJASTHAN HIGH COURT AT JAIPUR BENCH
Sangeet Lodha, J.
Kailash Chandra Modi - Appellant
Versus
Union of India & Anr. - Respondent
S. B. Civil First Appeal No. 51 of 1989.
Decided On : 18-09-2007
(a) Sales of Goods Act, 1930 – S. 2(4) – title of Goods documents – consignee made endorsement of disputed goods in favor of plaintiff on railway receipt – held, where endorsed receipt handed on goods payment there’s absolute transfer of goods with delivery right – endorsee consignee entitled action for delivery and damage to consignment on failed performance of contract – goods stand transferred to plaintiff – loss liable on Railway as bailee.
(b) Indian Railways Act, 1890 – S. 73 and 76 – Dispatch of goods on 12.9.1978 from Tindivanam, Madras to Sikar – goods train in accident on 18.11.1979 between Dalauda and Mandsaur station – open delivery to plaintiff after demurrage – damages quantified as money by Railway before plaintiff – when damages claimed by plaintiff – accident contended as Act of God so no liability for damages – no evidence by railway to prove accident as act of god – hence, no escape for railway – plaintiff entitled to damaged at 6% annual interest from goods delivery date till date of actual payment of damages – with costs appeal allowed.
M/s. Dungarmal Shyam Sunder of Surajgarh district Jhunjhunu entered into an agreement with M/s. Yaladam Lakshmaih & Co., Madras to purchase 160 bags of millet for consideration of a sum of Rs. 16,000/-. It is alleged that before the goods were actually transshipped from Tindivanam Railway Station, the plaintiff-appellant purchased the ownership of the goods after making full payment to M/s. Dungarmal Shyam Sunder. Accordingly, the original seller at Tindivanam was instructed to direct the goods for delivery to the plaintiff-appellant at Sikar. The goods were dispatched from Tindivanam for Sikar vide railway receipt No. 739095 dated 12.9.1978 in railway wagon no. 2604. The goods were not delivered by the railway to the plaintiff- appellant at the destination within the reasonable time. The plaintiff- appellant contacted the authorities of the Railway at Sikar time and again but, the authorities informed that the goods have not reached the destination so far. On 19.1.1979, the plaintiff-appellant was informed about the arrival of the goods at Railway Station, Sikar. Instead of wagon no. 2604, the goods were brought to Sikar in wagon on 31326. A slip pasted outside the wagon disclosed that during transit some accident had taken place somewhere between Railway Stations Dalauda. and Mandsaur, therefore, the goods were transshipped to wagon No.31326. Apparently, the goods were in highly damaged condition, therefore, suspecting foul play, the plaintiff-appellant claimed open delivery. The railway agreed to open delivery only after receiving a sum of Rs. 2055/- as demurrage. The amount was deposited by the plaintiff-appellant. During the course of open delivery, the bags were found in torn condition and the goods in highly damaged condition. Most of the consignment was no more fit for corksumption of even animals what to say for human consumption. On open delivery, the assessment of the damages was made by the railway authorities and for this purpose the damaged goods were categorised in three grades. The quantity of the goods in the different grades, percentage of damage and the loss in terms of money were determined as under:- Grade weight Percentage of damage Loss quantified 37.17 qunitals 40.00% र 1665.20 40.76 quintals 70.00% र 3195.58 48.23 qunitals 90.00% र 4861.84
The goods were found short by 33.84 qunitals, value whereof was quantified at Rs. 3779.08. Thus, the plaintiff-appellant claimed that he was entitled for the damages quantified at Rs. 13,512.20. The plaintiff-appellant also claimed interest w.e.f. 12.9.178 to 11.10.1980 @ 1% per month quantified at Rs. 3378/-. The plaintiff-appellant served a notice through his counsel on the authorities of the railway under Section 80 of the Civil Procedure Code read with 78-B of the Indian Railways Act, 1890. Since, the notice was not responded, the plaintiff-appellant preferred a suit for recovery against the defendants-respondents before the District Judge, Sikar.
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