Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Sec. 80, C.P.C by the Central Amending Act No. 39 of 1961
  • Sec. 77 of the Railway Act. Sec. 77 if the Railways Act
  • Sec. 77 of the Indian Railways Act and Sec. 80, C.P.C
  • Amending Act of 1961 as follows:80. Suits
  • provisions of Sec. 8 of the Railways Act
  • Railway.8. Sec. 80 of the Railways Act
  • Sec. 60 of the Railways Act
  • Sec. 80 of the Railways Act.
  • Amending Act 39 of 1961
  • Sec. 80, Railways Act.12.
  • Order 10 Rule 2, C.P.C
  • Sec. 80, Railways Act
  • Amending Act, 1961,
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Sec. 80, C.P.C by the Central Amending Act No. 39 of 1961
  • Sec. 77 of the Railway Act. Sec. 77 if the Railways Act
  • Sec. 77 of the Indian Railways Act and Sec. 80, C.P.C
  • Amending Act of 1961 as follows:80. Suits
  • provisions of Sec. 8 of the Railways Act
  • Railway.8. Sec. 80 of the Railways Act
  • Sec. 60 of the Railways Act
  • Sec. 80 of the Railways Act.
  • Amending Act 39 of 1961
  • Sec. 80, Railways Act.12.
  • Order 10 Rule 2, C.P.C
  • Sec. 80, Railways Act
  • Amending Act, 1961,
Smart Summary

Structured Summary of the Opinion (Satish Chandra, J.)

Factual and Procedural Background

The plaintiff sued for recovery of Rs. 1,200 (specifically proved loss of Rs. 1,123.17) for non-delivery of one bale out of three bales of cloth booked at Ahmedabad Railway Station (Western Railway) on 12 January 1961 for delivery at Muzaffarnagar. The goods were delivered to the plaintiff at Muzaffarnagar on 24 January 1961 but only two bales were delivered; one bale was not delivered. The plaintiff alleged the missing bale contained 160 Dhoti-Jodas worth Rs. 1,123.17.

The plaintiff served a notice under Sec. 77 of the Indian Railways Act (and Sec. 80, C.P.C. is also referenced in the plaint) on the General Manager, Northern Railway, New Delhi, and, receiving no response, filed the suit on 14 August 1961. The plaint originally designated the defendant as "Indian Union through the General Manager, Northern Railway" but was amended by striking out the phrase "through the General Manager, Northern Railway"—apparently to sue the Union of India as owner of the involved railway administrations.

The Union of India contested the suit on several grounds (including invalidity of notices and alleged violation of Sec. 60 of the Railways Act) and argued that western or Northern Railways were not responsible because no loss occurred while the goods were on those administrations. The trial court dismissed the suit primarily because the loss was found to have occurred on the Central Railway and the destination railway (Northern) was held not responsible under the pre-amendment law. The trial court also held that amendments to Sec. 80 (by Amending Act No. 39 of 1961) were not applicable because the loss, notice and suit pre-dated the amendments coming into force on 1 January 1962.

On first appeal, the plaintiff succeeded: the appellate court held that the changes in law during the pendency of the suit could be taken into account and, relying on the amended section, held both the destination railway administration and the administration on which the loss occurred liable. It decreed the suit against the Union of India for Rs. 1,123.17.

The defendant (Union of India) filed a second appeal. At an earlier hearing before a learned single Judge the plaintiff (respondent in the second appeal) argued that the revised provisions related to jurisdiction and that Sec. 21, C.P.C. protected the suit unless there was a failure of justice; the single Judge referred the matter to a larger Bench for reconsideration of an earlier decision (P. Rai & Sons v. Union of India). The present opinion resolves the second appeal.

Legal Issues Presented

  1. How is Section 80 of the Railways Act to be construed in relation to liability when goods are carried over railways of two or more railway administrations (specifically: whether the destination railway becomes liable after the 1961 amendment)?
  2. Whether the 1961 amendment to Section 80 (by Amending Act No. 39 of 1961) operates retrospectively so as to affect loss, notice or suits arising prior to its commencement (1 January 1962)?
  3. Whether a suit is maintainable against a particular railway administration where the required statutory notice under Section 77 of the Railways Act was not served on that administration?
  4. Whether, and in what circumstances, the Union of India may be sued simply because it is the owner of the railway administrations involved, without specifying the capacity in which the State/Union is made liable?

Arguments of the Parties

Appellant's (Union of India) Arguments

  • The Union contended that the notices were invalid.
  • It relied on a contention that there had been a violation of Section 60 of the Railways Act and pleaded that the suit was liable to be dismissed.
  • The Union argued that the Western or Northern Railways were not responsible because no loss occurred while the goods were being carried by those administrations (the finding of fact was that the loss occurred on the Central Railway).
  • Before the learned single Judge the appellant relied upon the decision in P. Rai and Sons v. Union of India (A.I.R. 1967 Alld. 530) which, as presented to the court, holds that a railway administration other than the one which received the goods is liable only if it is proved that the loss occurred on that particular administration.

Respondent's (Plaintiff) Arguments

  • The plaintiff urged that the provisions of Section 80 of the Railways Act relate to jurisdiction (place of suing), and therefore, by virtue of Section 21, C.P.C., the suit should not fail unless failure of justice is proved.
  • The plaintiff relied on Chandra Mohan v. Union of India (A.I.R. 1953 Assam 193) in support of the jurisdictional argument.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Jotmull Bhojraj v. D.H. Railway, A.I.R. 1962 S.C. 1879 Interpreting Sec. 77 of the Railways Act: a notice under Sec. 77 must be given to every railway administration against whom a suit is eventually filed. The court applied this rule to hold that since notice under Sec. 77 was not served upon the Western and Central Railways, the suit could not proceed against those administrations.
Chandra Mohan v. Union of India, A.I.R. 1953 Assam 193 (also discussed as Chandra Mohan Saha v. Union of India, Full Bench) Clarifies that where a railway is administered by a State Government, a suit may be brought against the State government; the plaint must state in what capacity the State is sought to be made liable (owner of railway where goods consigned or where loss occurred). The court held that this authority does not support a proposition that a claimant can obtain a decree simply by impleading the Union of India without specifying the capacity in which liability is alleged. The plaint must state the cause of action and capacity precisely.
Prahlad Rai and Sons v. Union of India (P. Rai and Sons v. Union of India), A.I.R. 1967 Alld. 530 Holds that a railway administration other than the one which received the goods is liable only when it is proved that the loss occurred on that particular administration. The court observed that this decision lays down the correct law and applied that principle to deny liability to the destination railway when the loss occurred on the Central Railway.

Court's Reasoning and Analysis

The court proceeded by examining statute and facts, and applied precedent. The main analytical steps were:

  1. Statutory notice requirement (Sec. 77, Railways Act): The court relied on the Supreme Court's interpretation (Jotmull Bhojraj) that a claimant must serve the Sec. 77 notice on every railway administration against whom a suit is to be brought. In the present case, notice was served only on the Northern Railway; no notice was served on the Western or the Central Railways. Consequently, the suit could not be maintained against the Western and Central Railways.
  2. Facts as found by the courts below: Both courts below recorded the finding of fact that the loss occurred while the goods were in transit on the Central Railway (and not on the destination Northern Railway). The plaintiff also had, by statement under Order 10 Rule 2, C.P.C., given up his claim against the Western Railway.
  3. Construction of Section 80 (pre-amendment and post-amendment): The court reproduced the text of Section 80 as it stood before the 1961 amendment and as re-enacted by the Amending Act of 1961. The unamended provision made liable (a) the railway administration on which the goods were booked/delivered by consignor, or (b) the railway administration on whose railway the loss occurred. The amended Section 80 added liability of the destination railway and also added a clause specifying courts where suits may be instituted.
  4. Characterisation of the amendment as substantive (not procedural): The court held that the provision dealing with which railway administration is liable is substantive law, not merely procedural (territorial jurisdiction). The paragraph added to the amended Section 80 that deals with courts may be viewed as relating to territorial jurisdiction, but the change making the destination railway liable is substantive.
  5. Non-retrospectivity of the 1961 Amendment: The Amending Act (No. 39 of 1961) provided that the amendments would come into force on 1 January 1962. The court concluded that the amendment was prospective and not retrospective. Because the non-delivery occurred on 24 January 1961, the notices were served on 1 May 1961 and the suit instituted on 14 August 1961, the pre-amendment substantive law governed liability.
  6. Application of precedents regarding impleading and capacity: The court referred to Chandra Mohan Saha v. Union of India to stress that merely impleading the Union of India (owner of the railway administrations) without specifying the capacity in which liability is alleged is insufficient to obtain a decree. The court also approved the principle in Prahlad Rai and Sons that a railway administration other than the receiving administration is liable only if the loss occurred on that administration.
  7. Conclusion from facts and law: Given (a) that the loss occurred on the Central Railway, (b) that no Sec. 77 notice was served on the Central Railway (or Western Railway), and (c) that the amended Section 80 providing destination railway liability did not operate retrospectively to cover the January 1961 loss, the destination Northern Railway could not be held liable merely because it was the destination railway. Thus the suit failed against that administration as well.

Holding and Implications

Core Ruling: The appeal is allowed; the decree in favor of the plaintiff is set aside and the suit is dismissed.

Immediate consequences for the parties:

  • The decree previously granted by the lower appellate court (for Rs. 1,123.17) is set aside.
  • The plaintiff's suit is dismissed. The court ordered that, in the circumstances, the parties shall bear their own costs throughout.

Broader legal implications as derived from the opinion (as expressly stated by the court):

  • The 1961 amendment to Section 80 of the Railways Act that made the destination railway liable is a substantive change in law and is prospective in operation; it does not apply to losses that occurred prior to its commencement on 1 January 1962.
  • A claimant must serve the statutory notice under Section 77 on each railway administration against whom a claim or suit is to be made; failure to do so bars suit against those administrations.
  • The destination railway is not automatically liable for loss merely because it is the destination; liability of any railway administration other than the one which received the goods arises only when it is proved that the loss occurred on that administration.

The opinion thus resolves the dispute by applying the statutory notice rule, the contemporaneous substantive law (pre-amendment Section 80), and existing authorities regarding capacity and impleading. It does not announce any departure from the cited precedents; rather, it applies them to the facts and rejects retrospective application of the 1961 amendment.

Appeal allowed.

    Union Of India v. Bhagat Ram .

    Satish Chandra, J.:— This is a defendant's second appeal.

    2. It arises out of a suit for recovery of Rs. 1,200/- on ground of non-delivery of one bale out of a consignment consisting of three bales of cloth. This consignment was booked at Ahmadabad Railway Station belonging to the Western Railway on 12th January, 1961, for delivery at Muzaffarnagar. The goods were delivered to the plaintiff at Muzaffarnagar on 24th January, 1961, but the Railway Administration gave delivery of only 2 bales. One bale was not delivered at all. It was alleged that this bale contained 160 Dhoti-Jodas worth Rs. 1,123.17 P. The plaintiff served a notice under Sec. 77 of the Indian Railways Act and Sec. 80, C.P.C on the General Manager, Northern Railway, New Delhi; and not evoking any response, filed the present suit on 14th August, 1961. The plaint designated the defendant as Indian Union through the General Manager, Northern Railway, Headquarter office. New Delhi. By an amendment the phrase through the General Manager, Northern Railway’ was scored out. It appears that after the amendment the plaintiff intended to sue the Union of India as the owner of the western as well as the Northern Railways.

    3. The Union of India contested the suit on a variety of grounds which included that the notices were invalid, that there has been a violation of Sec. 60 of the Railways Act and pleaded that the suit was liable to be dismissed. It was alleged that the western or the Northern Railways were not responsible because no loss took place while the goods were being carried by these Railway Administrations. The trial court dismissed the suit principally on the ground that the loss having occurred on the Central Railway, the destination Railway was not responsible to compensate the plaintiff. It held that the amendment introduced to Sec. 80, C.P.C by the Central Amending Act No. 39 of 1961 were not applicable because in the instant case the loss took place prior to the coming into force of the amendment. The notice was also served before that date and the suit was also instituted before the coming into force of the Amendments on 1st January, 1962.

    4. The plaintiff went up in appeal and succeeded. The lower appellant court held that the court was entitled ??? take into consideration the changes in ??? during the course of the pendency of the suit. Consequently, the amended Sec. 8 would be applicable. Under the amendment section the destination Railway Administration as well as the one on which the loss took place were liable. The Union of India being the owner of all the Rai way Administrations involved in the carriage of goods in the present case, the suit was liable to be decreed against the Union of India. In the suit the plaintiff was liable to implead only the Union of Indian and as such the frame of the suit was no defective for not impleading the Central Railway as such. It held that the plaintiff has proved that it suffered loss to the extent of Rs. 1,123.17 P. and on these findings the appeal was allowed and the suit was decreed for that amount.

    5. When the second appeal came ??? for hearing before a learned single Judge it was urged on behalf of the plaintiff respondent that the provisions of Sec. 8 of the Railways Act relate to ??? jurisdiction, i.e, the place of suing and therefore, by virute of Sec. 21, C.P.C the suit could not fail unless failure of justic was proved. Reliance was placed upon Chandra Mohan v. Union of India A.I.R 1953 Assam 193.. The learned Judge agreed with this submission but on behalf of the appellant reliance was placed upon the case of P. Rai an Sons v. Union of India A.I.R 1967 Alld. 530. in which another learned single Judge of this Court expresse the opinion that the Railway Administration other than the administration from where the goods were sent was liable only if it is proved that the loss occurring while the goods were in transit on that particular administration. The learned sing Judge felt that the decision in P. Rai's case required reconsideration and on that view he referred the case to a larger Bench.

    6. The principal question relates to the construction of Sec. 80 of the Railways Act. However, before we consider this question we may observe that the suit was not maintainable against the western and Central Railways for lack of notice under Sec. 77 of the Railway Act. Sec. 77 if the Railways Act provided that a person shall not be entitled to a refund or compensation for, inter alia, non-delivery or short delivery of goods unless he prefers a claim in writing within six months form the date of the delivery of goods. Interpreting Sec. 77 as it stood prior to the Amending Act, 1961, the Supreme Court in Jotmull Bhojraj v. D.H Railway A.I.R 1962 S.C 1879., in paragraph 22, observed:

    “Upon the language of Sec. 77 it would appear that a notice thereunder must be given to every railway administration against whom a suit is eventually lied. No such notice was given by the appellant to the G.I.P Railway administration of the E.I Railway administration or the B.A Railway administration within six months of booking the consignment and, therefore, in so far as they are concerned the suit must be held to have been rightly dismissed.”

    7. It is thus clear that a notice under Sec. 77 has to be served upon each Railway administration which is sought to be made liable to pay compensation. In the present case the notice under Sec. 77 was served on the Northern Railway alone. No such notice was served either on the Western Railway or the Central Railway. For this reason the suit was bound to fail against the Western and the Central Railways. It appears that in the statement under Order 10 Rule 2, C.P.C the plaintiffs counsel stated that the plaintiff gives up his claim as against, the Western Railway. The finding of fact recorded by both the courts below is that the loss in the present case occurred while the goods were in trasit on the Central Railway administration not the destination namely the Northern Railway.

    8. Sec. 80 of the Railways Act was in the following terms before its amendment in 1961:—

    “80. Suit for compensation for injury to through booked traffic. Notwithstanding anything in any agreement purporting to limit the liablity of a railway administration with respect to traffic while on the railway of another administration, a suit for compensation for loss of the life of, or personal injury to a passenger, or for loss, destruction or deterioration of animals or goods where the passenger was or the animals or goods were through over the railways of two or more railway administrations, may be brought either against the railway administration from which the passenger obtained his pass or purchased his ticket or to which the animals or goods were delivered by the consignor thereof, as the case may be or against the railway administration on whose railway the loss, injury, destruction or deterioration occurred.”

    9. The Section was repealed and re-enacted by the Amending Act of 1961 as follows:—

    “80. Suits for compensation. A suit for compensation for loss of the life of, or personal injury to, a passenger or for loss, destruction, damage, deterioration or non-delivery of animals or goods may be instituted,—

    (a) if the passenger was, or the animals or goods were, booked from one station to another on the railway of the same railway administration, against that railway administration;

    (b) if the passenger was, or due animals or goods were, booked through over the railway of two or more railway administrations, against the railway administration from which the passenger obtained his pass or purchased his ticket or to which the animals or goods were delivered for carriage, as the case may be, or against the railway administration on whose railway the destination station lies, or the loss of injury, destruction, damage or deterioration occurred: and, in either case, the suit may be instituted in a Court having jurisdiction over the place at which the passenger obtained his pass or purchased his ticket or the animals or goods were delivered for carriage, as the case may be, or over the place in which the destination station lies, or the loss, injury destruction, damage or deterioration occurred.”

    10. Sec. 80 specifies as to which Railway Administration is liable to pay compensation to a person for injury, loss etc., viz. where goods are carried by more than one Railway administration. Under the old section the railway administration upon which the goods were booked or the fail-way administration where the loss, injury or destruction occurred alone were liable to pay compensation and a suit for compensation could be brought against them only.

    11. The destination Railway was not liable merely as such. After the amendment of Sec. 80, the destination Railway administration was also made liable. This provision dealing with the liability of the railway administration is, in our opinion, a provision relating to substantive law. It is not a provision dealing with procedure of Courts. It has nothing to do with the manner or method of the institution of the suit. After its amendment by the amending Act, 1961 a further paragraph in the shape of the last paragraph of Sec. 80 was added. Under it, provision as made in regard to courts where the suit may be instituted. This new provision may be held to be dealing with the territorial jurisdiction of courts to which Sec. 21, C.P.C may apply; but there was no such provision in the unamended Sec. 80, Sec. 21, C.P.C or the principle under-lying hence could not be made applicable to suits which were governed by the unamended Sec. 80, Railways Act.

    12. We have seen that the old Sec. 80, Railways Act was a substantive provision. Its amendment would normally be not retrospective. The Amending Act 39 of 1961 provides that the amendment introduced by that Act would come into force from 1st January, 1962. That would also show that the amendment made by that Act were not retrospective. There is nothing else in the Amending Act from which it could be inferred that the amendments introduce in Sec. 80 were to operate retrospectively.

    13. In the present case the non-deli very took place on 24th January, 1961. The notices were served on the railway administration on 1st May, 1961, and the suit was instituted on 14th August, 1961 The amendments introduced in Sec. 8 whereunder the Destination Railway be came liable came into force on 1st January 1962. This amendment being prospective would not govern the liability of the rail way administration to pay compensation to the plaintiff.

    14. The decision of the Full Bench in Chandra Mohan Saha v. Union of India only says that in the case of a railway ad ministered by the Government of a State the suit could be brought against the Government of the State concerned. The manager of the railway administration need not be impleaded as a party. It was observed that the plaint must, on the face of it, state the cause of action as to how and in what capacity the State is sought to be made liable whether as owner of the railway to which the goods were consigned, pr as owner of the railway on which the loss occurred or both. This case does not hold that a claimant can get a decree by merely impleading the Union of India. The suit cannot succeed against the Union of India without the mentioned clarification, merely on the ground that the Union of India is the owner of every railway administration involved in the loss or injury. The learned Single Judge in Prahlad Rai and Sons v. Union of India observed that the liability of the railway administration other than the railway administration which received the goods, but through which the goods were to pass arises only when it is proved that the loss occurred on that particular administration. In our opinion, this decision lays down correct law.

    15. The loss not having occurred on the Northern Railway and the relevant amendment of Sec. 80 not being retrospective that railway administration could not be held liable merely because it was the destination railway. The suit against this railway administration was liable to fail.

    16. In the result the appeal succeeds and is allowed. The decree is set aside and the suit is dismissed but in the circumstances of the case the parties may bear their own costs throughout.

    Appeal allowed.

    Use AI to get other relevant cases.

    Comments

    Union Of India v. Bhagat Ram .
    (Nov 5, 1971)