HIGH COURT OF NAGPUR
Bose, J
FIRM SITARAM BINDRABAN – Appellant
Versus
GOVERNOR-GENERAL IN COUNCIL AND ORS – Respondent
Decided on : 09-01-1947
Railway Administration - Damages - Railways Act, Section 72 - Contract Act, Section 161 - Limitation Act, Article 30, Sections 23 and 24
Fact of the Case:
The plaintiff sued the railway administration for damages due to the negligent handling of consignments of cotton-seed bags. The lower appellate Court found in favor of the plaintiff on all material questions of fact but held the claim to be barred by limitation under Article 30 of the Limitation Act.
Finding of the Court:
The court found that the plaintiff's claim was within limitation as the loss was a result of a continuing wrong, and the responsibility of the railway administration was established under Section 72 of the Railways Act. The court also held that the plaintiff was entitled to damages for the entire period of deterioration until the date he was permitted to remove his goods.
Issues: The main issue was whether the plaintiff's claim was barred by limitation under Article 30 of the Limitation Act.
Ratio Decidendi: The court held that the loss was a result of a continuing wrong, and the plaintiff was entitled to claim damages for the entire period of deterioration until the date he was permitted to remove his goods. The court also emphasized the application of Sections 23 and 24 of the Limitation Act in cases of continuing breach of contract and continuing wrong independent of contract.
Final Decision: The appeal was allowed, the decrees of both lower Courts were reversed, and a decree was passed in the plaintiff's favor for the claimed damages.
Bose, J—This is a plaintiff's appeal arising out of a suit against the Governor-General in Council representing the Great Indian Peninsula Railway Administration. The suit is for damages, and the claim can be divided into two parts. In one part, the plaintiff seeks compensation for injury caused to a portion of certain consignments of cotton-seed bags which the plaintiff made over to the defendant. The other relates to damages for loss of the remaining portion of those consignments. The facts are as follows:
2. On 28-4-1942 the plaintiff handed over 300 bags of cotton seed to the Station Master at Khamgaon railway station for despatch to Rewari. This consignment was accepted by the railway authorities and registered. On 16-5-1942 a second consignment of 350 bags was handed over at Khamgaon for despatch to New Delhi. This was also accepted and registered. These are the two consignments with which we are concerned in appeal.
3. The plaint also included another consignment of 280 bags tendered to the railway authorities on 18-5-1942. There is, however, a finding of fact in respect of this to the effect that the authorities refused to accept the consignment, and accordingly the matter was excluded from the scope of this suit in the lower Courts. That finding is accepted here, and we are not concerned with these 280 bags.
4. The plaint alleges that the railway authorities were maliciously negligent and allowed his goods to be injured by rain, theft and damage from cattle in spite of his protests, and further that they would not permit him either to remove these goods and place them under cover at the railway station, cover being available, nor would they allow him to take them away in order to minimise the loss. Eventually, he was permitted to remove them on 3-9-1942 and he did so. He claims damages in respect of the deterioration upto this date. Also on that date, according to the plaintiff, 44 bags were found to have been lost, and he sues for the value of the cotton-seed in these bags.
5. The lower appellate Court has found in the plaintiff's favour on all material questions of fact, but the learned Judge holds that the claim is governed by Article 30, Limitation Act and holds that it is barred by limitation.
6. The following provisions of law fall for consideration. In a case of this kind, the responsibility of the railway administration is fixed by Section 72, Railways Act. That section is as follows: The responsibility of a railway administration for the loss, destruction or deterioration of goods delivered to the administration to be carried by railway shall, subject to the other provisions of this Act, be that of a bailee under Sections 152 and 161, Contract Act, 1872.
Section 161, Contract Act, which is the relevant section here provides: If by the default of the bailee the goods are not returned, delivered or tendered at the proper time, he is responsible to the bailor for any loss, destruction or deterioration of the goods from that time.
Next follow the provisions of the Limitation Act. Article 30 provides that in a case against a carrier ''for compensation for losing or injuring goods'' the limitation shall be one year and will run from the date when ''the loss or injury occurs.'' Sections 23 and 24, Limitation Act, are also in point. Section 23 provides that: In the case of a continuing breach of contract and in the case of a continuing wrong independent of contract, a fresh period of limitation begins to run at every moment of the time during which the breach or the wrong, as the case may be, continues.
Section 24 is in the following terms: In the case of a suit for compensation for an act which does not give rise to a cause of action unless some specific injury actually results therefrom, the period of limitation shall be computed from the time when the injury results.
7. The facts are as follows: The goods were consigned for carriage over the railway system to certain stations. In the ordinary course they ought to h
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