A railway administration is not liable for damage to goods carried by it unless negligence or misconduct on its part is proved.

ISMAIL, C.J. :- This is a defendant's appeal against the judgment and decree of Ratnavel Pandian, J. rendered in C.S. No. 116 of 1972, on the file of the Original Side of this court. Since most of the facts are not in controversy, we are not elaborately referring to the pleadings as well as the evildence and we shall refer only to that part of the pleadings and the evidence which will enable us to concentrate on the crucial questions involved for decision in this appeal.

2. There were two plaintiffs in the suit, the first being the Insurance company and the second being a company by name Algappa Textiles (Cochin) Ltd. The admitted facts are - 50 Bales of fully pressed cotton were despatched by Messrs E.I.C. Khamgoan on 21-1-1971 for delivery to the second plaintiff in the suit at Pudukad railway station between Cochin and Shoranur. The goods arrived at the Pudukad railway station on 12-2-1971. The goods were unloaded with the help of coolies engaged by the second plaintiff itself on 13-2-1971. After the goods were unloaded, they were kept adjacent to the goods shed as there was no space in the covered goods shed for stacking these 50 bales. On 28-2-1971, at about 3-45 p. m. fire was noticed in these 50 bales and the station Master on duty as well as the railway staff and others attempted to put out the fire and fire brigades also were summoned and the first Brigade arrived at 4-27 p. m. and the second Brigade arrived at 6-30 p. m. After the fire, the goods were assessed and according to the plaintiffs, the salvage value of the goods was only Rs. 15,000. They instituted the present suit for recovery of a sum of Rs. 65,53170 with interest at the rate of 6 per cent per annum from the date of presentation of the plaint till date of payment. In paragraph 4 of the plaint it was stated that the second plaintiff came to know that on 28-2-1971 there was a fire accident at Pudukad railway station and the entire 50 bales of cotton belonging to the second plaintiff were destroyed by fire, in the custody of the defendant; the second plaintiff immediately deputed a surveyor to assess the damage as well as to know the cause of the fire accident: all the bales of cotton were totally unfit for the purpose for which they were bought by the second plaintiff: they managed to sell the salvage for Rs. 15,000, being the best price available for the same. In paragraph 6 of the plaint, they averred that the loss occurred entirely due to the negligence and/or misconduct of the servants of the defendant who failed to exercise reasonable care as is expected of it in law, in safeguarding the consignment against any fire accident, and in having the reasonably required equipments to extinguish the fire. In paragraph 6 of the plaint, it was averred that the total loss suffered by the second plaintiff was Rs. 78,658-54 being the value of the 50 bales of the cotton plus Rs. 1573-16 being the surveyor's fees and giving credit to Rs. 15,000 being salvage value, they have suffered a net loss of Rs. 65,531-70 and only with reference to this amount, they instituted the suit.

3. In the written statement filed by the defendant appellant herein, among other pleas, the defendant stated in paragraph 2 that 50 bales of fully pressed cotton were consigned by East lndia Corporation on 21-1-1971; and the railway receipt was taken in the name of 'self'; the railway receipt was endorsed in favour of the second plaintiff; the consignment was received at destination on 12-2-1971; and as there was no space in the covered goods shed, these 50 bales of fully pressed cotton were unloaded and kept adjacent to the goods shed; the station master immediately informed the second plaintiff to take delivery of the goods; but the second plaintiff did not take delivery of the goods in spite of several reminders from the station master; the bales were fully covered with Tarpaulins and special watch was kept in respect of the bales kept adjacent to the goods shed; on 28-2-1971 in the a