, J.

1. Messrs. Amin Chand Payare Lal, respondent in this appeal, filed a suit against the Union of India representing Northern Railway, Delhi, and Eastern Railway, Calcutta, for the recovery of Rupees 5,195.93 as the price of short delivery of pig iron which had been despatched by Messrs. Hindustan Steel Ltd., after it had been purchased by the plaintiff firm. The suit was contested by the Union of India but was decreed by the learned Senior Subordinate Judge by judgment dated 17th February 1962. Being aggrieved, the Union of India has challenged this judgment and decree through the present appeal.

2. The appeal was first placed before a learned Single Judge but as the main question canvassed, which related to the interpretation of the provisions of Section 77 of the Indian Railways Act, was of considerable importance the matter was referred to a Division Bench and this is how this appeal is before us now.

3. In appeal before us only the findings on Issue No. 2 which is as follows were challenged:-

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"Whether notices issued under Section 77 of Indian Railways Act were not served within time?

4. The facts necessary for decision of this appeal are not in dispute. Notice unde