RAMANUJAM, J. :- The defendant in O. S. No. 69 of 1960 on the file of the Sub Court, Salem, is the appellant before us. The suit was filed by the plaintiffs, Sri Rajendra Mills Limited, Salem and the Eagle Star Insurance Company Limited, Bombay against the Union of India, representing Southern Railway and Central Railway for damages in a sum of Rs. 10,128/- being the loss suffered by them as a result of the damage to the first plaintiff's goods by fire. The facts which gave rise to the suit are not in dispute.

The first plaintiff was a consignee of 100 bales of pressed cotton from Messrs. Naran Das Rajaram (Private) Limited, Bombay. The bales were securely packed and delivered in good condition at Banosa in the Central Railway and were accepted for carriage at railway risk to be delivered to the plaintiff at Salem in Southern Railway, under invoice No. R. R. No. 9120/34 dated 2-3-1959. Out of the said consignment of 100 bales, 90 bales were loaded in one wagon and 10 bales were loaded in another. The wagon containing 90 bales arrived at Salem and the contents were found to be damaged by fire. The remaining 10 bales were however received later in good condition and accepted