A claim under Section 77 of the Indian Railways Act must reach the railway administration within six months from the date of the delivery of goods for carriage by railway.

, 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 under Section 77 of the Indian Railways Act(hereinafter called the Act) was despatched through post to the Railway Authorities on 17th August, 1960, and was received after the expiry of six months period. The question which needs consideration in this case is whether a notice under Section 77 of the Act has to reach the railway administration within six months from the date of the delivery of goods for carriage by railway or has merely to be posted by a registered post within the period of six months. It may be stated at the outset that there is a conflict of authorities on this point inasmuch as the Patna and Madhya Pradesh High Courts have taken the view that if the notice was forwarded by a registered post within the prescribed time it would be presumed that the service has been effected in time while the Allahabad, Kerala and Nagpur High Courts have taken the contrary view.

5. In order to appreciate the rival contentions reference will have to be made to Section 77, 140 and 142 of the Act which are set down below.

"77. Notification of claims to refunds of over-charges and to compensation for losses. A person shall not be entitled to a refund of an overcharge in respect of animals or goods carried by railway or to compensation for the loss, destruction or deterioration of animals or goods delivered to be so carried, unless his claim to the refund or compensation has been preferred in writing by him or on his behalf to the railway administration within six months from the date of the delivery of the animals or goods for carriage by railway.

140. Service of notices on railway administrations.-- on the Agent in India of the railway company-- (a) by delivering the notice or other document to the Manager or Agent; or

(b) by leaving it at his office; or

(c) by forwarding it by post in a prepaid letter addressed to the Manager or Agent at his office and registered under Part III of the Indian Post Office Act 1866(14 of 1866).

142. Presumption where notice is served by post--Where a notice or other document is served by post, it shall be deemed to have been served at the time when the letter containing it would be delivered in the ordinary course of post, and in proving such service it shall be sufficient to prove that the letter containing the notice or other document was properly addressed and registered."

Section 77 of the Act provides that unless a claim to a refund or compensation has been preferred in writing to the railway administration within six months from the date of the delivery of goods for carriage by railway a person shall not be entitled to compensation. In Ram Gopal Marwari V/s. Bengal and North-Western Rly. Co; AIR 1927 Pat 241, the view taken was that when a letter is posted the claim is preferred as contemplated in Section 77. Support for