The plaintiffs filed this suit against the Union of India represented by General Managers of B.B. and C.I.,G.I.P. and Southern Railways for recovery of Rs. 1,453-13-6 as compensation for the damage done to six bales of cotton cloth consigned by the Surat Cotton Spinning and Weaving Mills, Ltd., to the plaintiffs. The Surat Cotton and Spinning Mills, Ltd. consigned six bales of cotton cloth on 25th August, 1950 to the plaintiffs. When the bales reached Madras they were found wet and thereupon delivery was taken on 21st September, 1950, in the presence of the Railway Inspector who made an endorsement to the effect that all the six bales were found damaged by water on all sides. Water had penetrated far into the bales and wettage could be felt on the gunny covering. Packing was gunny covering with brown paper packing inside. The plaintiffs took delivery on 21st September, 1950 in the expectation that the compensation of Rs. 1,453-13-6 which was fixed as damages to the goods would be paid by the railway authorities. There was correspondence between the plaintiffs and the railway company and by a letter, dated 26th December, 1950, the railway company rejected the claim for