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1952 Supreme(All) 305

IN THE HIGH COURT OF ALLAHABAD
Mukerji, J.
RAM NARAIN - Appellant
Versus
DOMINION OF INDIA, NEW DELHI - Respondents
Civil Revn. 595 Of 1950
Decided On : 12/04/1952

Advocates Appeared:
Gopi Nath Kunzru, J.Swarup, LALTA PRASAD, S.N.KACKAR

Headnote:

RAILWAYS ACT - SECTION 77 - NOTICE - NON-DELIVERY OF GOODS - CAUSES - LOSS, DESTRUCTION OR DETERIORATION - NOTICE REQUIRED - OTHER CAUSES - NOTICE NOT REQUIRED - ENDORSEMENT OF RAILWAY RECEIPT - TITLE TO GOODS - PASSES TO ENDORSEE.

Fact of the Case:

The plaintiff filed a suit against the Railway Administration for the recovery of damages for the loss of seven packages of betel leaves which had been consigned from railway station Danton to Allahabad. The consignment was despatched on 5-5-1947, and the plaintiff was the consignee of ten packages. Only three packages were delivered, and the remaining seven were not delivered. The plaintiff had endorsed the railway receipt in favor of Beni Prasad, who took delivery of the three packages and filed a claim against the Railway for damages. The Railway compromised the claim with Beni Prasad for a sum of Rs. 154/. The plaintiff came to know of this unauthorized activity and wrote to the Railway to stop making payment to Beni Prasad. The Railway stopped making payment, and the pay order drawn up in Beni Prasad's name was not given to him.

Finding of the Court:

The court held that the suit could not fail because notice under Section 77, Railways Act, had not been given. The court relied on two Full Bench decisions which held that where non-delivery of goods is due to loss, destruction, or deterioration, then only notice under Section 77, Railways Act, is necessary, but where non-delivery of goods is due to any other reason, then no such notice is required. The court also held that the plaintiff had the right to sue in respect of the consignment since there was no specific endorsement by the plaintiff in favor of Beni Prasad.

Issues: 1. Whether notice under Section 77, Railways Act, is required where non-delivery of goods is due to reasons other than loss, destruction, or deterioration. 2. Whether the plaintiff had the right to sue in respect of the consignment after endorsing the railway receipt in favor of Beni Prasad.

Ratio Decidendi: 1. The court held that notice under Section 77, Railways Act, is not required where non-delivery of goods is due to reasons other than loss, destruction, or deterioration. The court relied on two Full Bench decisions which held that where non-delivery of goods is due to loss, destruction, or deterioration, then only notice under Section 77, Railways Act, is necessary, but where non-delivery of goods is due to any other reason, then no such notice is required. 2. The court held that the plaintiff had the right to sue in respect of the consignment since there was no specific endorsement by the plaintiff in favor of Beni Prasad.

Final Decision: The court allowed the plaintiff's application in revision, set aside the decision of the trial court, and decreed the plaintiff's suit for the sum claimed.


MUKERJI, J.

( 1 ) THIS is a plaintiffs application in revision arising out of a suit filed in the Court of Small causes at Allahabad for the recovery of a sum of Rs. 285/13/6 as damages for the loss of seven packages of betel leaves which had been consigned from railway station Dan-ton to Allahabad. The consignment was despatched on 5-5-1947, and the plaintiff was the-consignee of ten packages, which were the number of packages, that had been despatched to him from Danton. In the usual course the packages were expected at Allahabad but when delivery was sought of the consignment only three packages out of a total of ten were delivered. Delivery of these three packages was taken by a person called Beni Prasad who happens to be a party to this revision also, as opposite party No. 2. It appears that Beni Prasad was a sort of an agent on behalf of the plaintiff to take delivery of his consignments. It appears further that Beni Prasad deeming himself competent to lay a claim for the non-delivery of the seven packages laid a claim against the railway for damages. The railway compromised the claim with Beni Prasad for a sum of Rs. 154/, and a "pay order" was actually drawn up bearing the date 23-11-1947, in favour of Beni Prasad. Fortunately, the plaintiff came to know of this unauthorised activity of Beni Prasad and he wrote to the Railway to say that they had no business to make payment to Beni Prasad in respect of the loss of a part of the consignment which had been booked in the plaintiffs name. On receipt of the plaintiffs letter which was dated 5-12-1047, the Railway stopped making payment to Beni Prasad and the amount of the pay order which had been drawn up in his name, on 29-11-1947, was not given to beni Prasad.

( 2 ) ON 5-7-1947, the suit out of which this revision has arisen was instituted by the plaintiff against the Dominion of India, which under the Adaptation Order has to be read as the Union of india, for the recovery of the sum which I have already mentioned earlier.

( 3 ) ON behalf of the Railway, several defences were raised. One such defence, which I must notice at the outset, was that Beni Pra-sad was a necessary party to the suit. On this objection, on behalf of the Railway, which defended the case in place of the Union of India, Beni Prasad was added as a defendant to the suit. The other defence, which I need notice, was that the claim was barred because notice under the provisions of Section 77, Railways Act, had not been served on the Railway Administration.

( 4 ) THE Trial Judge gave effect to the plea that the suit could not succeed because notice under section 77, Railways Act, had not been given The suit was, therefore, dismissed by the learned judge of Small Causes, Allahabad.

( 5 ) THE plaintiff has come up in revision and it has been contended on his behalf by Mr. Kackar that the view of the learned Judge of the Court below in regard to Section 77, Railways Act, is no more good law in view of two recent Full Bench decisions, in -- governor General in Council v. Mahabir Ram, reported in AIR 1952 All 891 (A) and -- mutsaddi Lal v. Governor General in council, AIR 1952 All 897 (B ). In the first noted Full Bench, it has been held that where non-delivery of goods is due to loss of goods by the Railway Administration or due to their destruction or deterioration, then only notice under Section 77, Railways Act, is necessary, but where non-delivery of goods is due to any other reason, then no such notice is required. The Full bench further held that where the claim is not based upon the loss of the goods by the Railway administration, but upon non-delivery for other causes and the evidence does not establish that there was loss of the goods by the "railway Administration, Section 77 does not apply and such a suit cannot fail for want of notice.

( 6 ) THE second Full Bench to which I have referred, namely the Full Bench in musaddi Lals case, it was held that non-delivery of goods may be due to a variety of ca





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