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1984 Supreme(Ori) 6

High Court Of Orissa
B. K. Behera And R. C. Patnaik, JJ.
ORIENT PAPER MILLS LTD. - Appellant
Versus
UNION OF INDIA (UOI) - Respondent
First Appeal 213  Of  1972
Decided On : 01/02/1984

Advocates Appeared:
B.Pal, S.S.BASU

Under Section 76-C of the Railways Act, the railway administration is not liable for loss, damage, or non-delivery of goods to be delivered at a siding not belonging to the administration, provided that the wagon containing the goods has been placed at the point of interchange of wagons and the owner of the siding has been informed in writing.

Headnote:

RAILWAYS ACT - SECTION 76-C - LIABILITY OF RAILWAY ADMINISTRATION - GOODS TO BE DELIVERED AT SIDING NOT BELONGING TO ADMINISTRATION - CONDITIONS FOR EXEMPTION FROM LIABILITY - INTERPRETATION AND APPLICATION.

Fact of the Case:

The appellant, a consignee, sued the respondent railway administration for damages due to the non-delivery of a consignment of caustic soda lve. The consignment was loaded at the consignor's private siding without the supervision of railway staff and was placed at the appellant's siding with the seal intact. The appellant claimed that the wagon was empty and without a seal when it was placed at their siding.

Finding of the Court:

The court found that the appellant failed to establish the actual loading of the goods in the wagon and that there was no evidence to show that the wagon had no seal and label when it was placed at the appellant's siding. The court held that the railway administration was not liable for the loss or damage to the goods as the conditions under Section 76-C of the Railways Act were satisfied.

Issues: 1. Whether the appellant had established the actual loading of the goods in the wagon. 2. Whether there was evidence to show that the wagon had no seal and label when it was placed at the appellant's siding.

Ratio Decidendi: 1. The onus of proving the actual loading of the goods lay on the appellant, and the evidence led by the appellant was insufficient to establish this fact. 2. The appellant failed to produce evidence to show that the wagon had no seal and label when it was placed at their siding. The court drew an adverse inference from the appellant's failure to examine a material witness who would have been able to testify about the condition of the wagon when it was placed at the siding.

Final Decision: The appeal was dismissed, and the judgment and decree passed by the trial court were affirmed.

BEHERA, J.

( 1 ) THIS appeal has been directed against the judgment and decree passed by the learned Subordinate Judge, Sambalpur, dismissing the appellant's suit against the respondent for damages to the tune of Rs. 10. 729. 66 paise with costs and future and pendente lite interest, The case of the appellant was that a consignment containing a caustic soda lve in tank wagon No. CR-43595 was booked under invoice No. 31. R. R. No. 145457 dated 18-8-1969 by the consignor Jayshree Chemicals Ltd. and the wagon was loaded at the private siding of the consignor at Ganiam. This consignment was placed at the siding of the appellant-company on 23-8-1969 and it was found to be completely empty. The wagon was without any seal and label. The non-delivery of the entire caustic soda lve was, according to the appellant, due to the gross negligence and misconduct of the railway administration and after protracted correspondence with the railway administration claiming damages without any result, the suit was instituted for the aforesaid claims. The respondent denied any negligence or misconduct on the part of the railway administration and their servants and pleaded that the consignment of the tank wagon was loaded at the consignor's private siding not supervised by any railway staff after due repairs to the wagon and the same was handed over to the appellant (consignee) at the private siding of the appellant with the seal intact and therefore, the railway administration incurred no liability. On these pleadings, issues were framed and the parties went to trial and led oral and documentary evidence. Four witnesses were examined for the plaintiff-appellant and the respondent had examined one witness. The trial court was of the view that the onus lay on the appellant to establish the actual loading of the goods for the loss of which the claims had been made. After a discussion of the evidence in this regard, the trial court did not accept the case of the appellant about the loading of the goods in the wagon. The learned Subordinate Judge has taken notice of Section 76-C, Railways Act and held, with reference to the principles laid down in (1972) 2 Cut WR 1187. Union of India v. Straw Products Ltd. , Jaykaypur, that the liability of the railway is over the moment the wagon is placed at the private siding of the appellant. Notice has been taken of the fact that no immediate intimation had been given that the wagon had no seal and label after the wagon was placed at the private siding of the appellant. According to the trial court, there was no evidence from the side of the appellant that the seal and the label had been damaged or tampered with at the time the wagon was placed at the private siding of the appellant. Reference was made to the principles laid down by this Court in AIR 1965 Orissa 4, Union of India v. Cuttack Cycle Supply and Co. and by Madras High Court in AIR 1956 Mad 176. Union of India v. S. P. L. Lekhu Reddiar and it was held that in the circumstances of the case, the respondent could not be saddled with any liability. Thus the plaintiff's claims were disallowed.

( 2 ) MR. Basu, appearing on behalf of the appellant, has contended, with reference to the relevant oral and documentary evidence, that the findings recorded by the trial court against the appellant both with regard to the loading of caustic soda lve at Ganiam and with regard to the appellant's claim that at the Brajarajnagar siding of the appellant, the seal of the wagon was not intact and the wagon was empty are incorrect and unfounded and that an unreasonable view has been taken by the trial court. Mr. Pal has referred to the same decisions on which reliance has been placed by the trial court and has submitted that the findings recorded by the trial court are factually well founded and legally sound.

( 3 ) THE admitted case of the parties to the suit was that the loading of caustic soda lve had been done at the consignor's private siding without the supervision of












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