JUDGMENT : This is a plaintiff's second appeal from the decree of the 1st Additional Civil Judge of Meerut dismissing their suit for recovery of damages from the respondent Union of India. The plaintiff-appellant, Messrs Amrit Vanaspati Limited, is a company carrying on business in Ghaziabad and the defendant is the Union of India as the owner of the Central and Northern Railways. The plaintiff-appellant alleged into a plaint that a wagon containing ground-nut oil was booked from Sholapur to be delivered at Ghaziabad and the railway receipt was endorsed in its favour. It is common ground that the wagon was never delivered. The plaintiff then claimed a sum of Rs. 26472/11 as the cost price of the oil which was lost. Before this amount could be paid by the railway, the plaintiff made a second additional claim for Rs. 5556/- on account of losses alleged to have been suffered as a result of the rise in the price of the oil. The respondent Railway sent a sum of Rs. 26338.12 np. by a cheque dated 19th September 1957. The appellant Company cashed the cheque and sued for the balance.

The Railway resisted the claim on the ground that the cheque had been sent in full and final settlement of t

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