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  • section 80 of the Indian Railways Act and sec. 80 of the Code of Civil Procedure
  • sections 3(6) and 140 of the Indian Railways Act.4.
  • dismissed.3. Section 77 of the Indian Railways Act
  • Section 80 of the Code of Civil Procedure
  • Section 140 of the Indian Railways Act
  • Section 3(6) of the Indian Railways Act
  • section 77 of the Indian Railways Act.
  • section 80 of the Indian Railways Act
  • sections of the Indian Railways Act,
  • sec. 77 of the Indian Railways Act
  • SECTION 77 RAILWAYS ACT
  • sec. 77 of the Railways Act
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  • section 80 of the Indian Railways Act and sec. 80 of the Code of Civil Procedure
  • sections 3(6) and 140 of the Indian Railways Act.4.
  • dismissed.3. Section 77 of the Indian Railways Act
  • Section 80 of the Code of Civil Procedure
  • Section 140 of the Indian Railways Act
  • Section 3(6) of the Indian Railways Act
  • section 77 of the Indian Railways Act.
  • section 80 of the Indian Railways Act
  • sections of the Indian Railways Act,
  • sec. 77 of the Indian Railways Act
  • SECTION 77 RAILWAYS ACT
  • sec. 77 of the Railways Act
Smart Summary

Structured Summary of the Opinion (Lahiri, J.)

Factual and Procedural Background

The plaintiffs were consignees of two consignments of handkerchiefs shipped from Ahmedabad to Barakar under Railway Receipts No. 45622 and 45623 dated 12.9.51. On arrival at Barakar, the plaintiffs received short-delivery receipts recording shortages of 29 dozens in one consignment and 13 dozens in the other. The plaintiffs alleged the shortages resulted from gross and wilful neglect and misconduct by the defendant Railway and that the consignments had been "tampered with and contents taken away" while in the custody of the defendant. The plaintiffs sued for Rs. 174-14-6 as compensation.

In the plaint the defendant was described as the Union of India representing (1) Eastern Railway, (2) Western Railway and (3) Northern Railway because transit required carriage over those Railways. The suit was contested only by the Eastern Railway. In its written statement the Eastern Railway pleaded that no valid statutory notice under section 77 of the Indian Railways Act or under section 80 of the Code of Civil Procedure had been served and that for that reason the suit should be dismissed.

The record shows a notice under section 77 was served only upon the Chief Commercial Manager of the Eastern Railway and not upon the other two Railways. The Small Cause Court Judge overruled the defence, held that serving one notice upon the Union of India as a single entity sufficed, and decreed the plaintiffs' claim against all defendants. The Eastern Railway obtained the present Rule challenging that decree.

Legal Issues Presented

  1. Whether a single notice under section 77 of the Indian Railways Act, served on the Chief Commercial Manager of one railway (Eastern Railway), suffices where the defendant is described as the Union of India representing multiple railways.
  2. Whether, for government-administered railways, a notice under section 77 must be served upon the Railway "Manager" (General Manager) as defined by the Indian Railways Act and section 140 of the Act.
  3. Whether section 77 of the Indian Railways Act applies to short delivery of consignments (i.e., whether short delivery can constitute a "loss" attracting section 77).
  4. Whether, under section 80 of the Indian Railways Act, a plaintiff who sues a particular railway (and omits the contracting railway) must prove that the loss, destruction or deterioration took place while the consignments were in the custody of the railway sued.

Arguments of the Parties

Petitioner's Arguments (Mr. Bose for the Eastern Railway)

  • Service of notice upon the Chief Commercial Manager of the Eastern Railway does not comply with the requirements of section 77 of the Indian Railways Act; notice must be served on the Manager (General Manager) in the case of Government-administered railways.
  • Under section 80 of the Indian Railways Act the plaintiffs were not entitled to a decree in the absence of a finding that the loss/destruction/deterioration took place while the consignments were in the custody of the Eastern Railway; if the contracting railway is omitted, the plaintiff bears the strict onus of proving the loss occurred on the railway sued (relying on Dominion of India v. Firm Museram Kishunprasad).

Opposite Parties' Arguments (Mr. Ghose for the plaintiffs)

  • Relied on a Division Bench judgment (Union of India v. Gujrat Tobacco Co.) and earlier decisions indicating that service of notice on a Chief Commercial Manager may be sufficient.
  • Contended that section 77 does not apply to short delivery of a consignment (i.e., that no notice under section 77 was necessary for short delivery).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Dominion of India v. Jagadish Prosad Pannalal (A.I.R. 1949 Cal. 622) Discussed whether different Railways are to be treated as a single entity or separate entities; Harries, C.J. observed different results would follow depending on that characterization but did not decide that all Railways had lost independent existence. The Court held this decision does not support the Small Cause Court's conclusion that the three Railways constitute one legal entity; it was relied on but found not decisive for treating all Railways as a single entity.
Samsul Haq v. Secretary of State (I.L.R. 57 Cal. 1286; Lort-Williams, J.) Held that notice under section 77 served upon the Chief Commercial Manager was sufficient compliance with the section. The Court noted this decision but treated it as part of earlier conflicting authorities and did not adopt it, preferring later Division Bench decisions requiring service on the Manager/General Manager.
Srislidhar (Snstidhar) Mondal v. Governor-General in Council (49 C.W.N. 240; Henderson, J.) Supported the view that notice served on a Chief Commercial Manager is sufficient for section 77. The Court acknowledged this authority but observed it was part of a line of conflicting decisions and declined to follow it, preferring decisions requiring service on the General Manager/Manager.
Surendra Nath Poddar v. Governor-General of India in Council (Civil Revision No. 1353 of 1947; A.I.R. 1952 Calcutta 341; Sen, J.) Expressed dissent from decisions holding that notice on Chief Commercial Manager was sufficient; indicated notice must be on the General Manager. The Court treated Sen, J.'s view as persuasive and noted it was approved and followed by later Division Bench decisions; the Court followed this line requiring service on the Manager.
Union Of India v. Indumati Saha (55 C.W.N. 662; Mookerjee & Guha, JJ.) Approved Sen, J.'s dissent that the notice contemplated by section 77 must be given upon the General Manager and not any sectional or departmental head. The Court regarded this Division Bench decision as binding and followed its reasoning that notice must be served upon the General Manager (or Manager) rather than a sectional head.
Assam Bengal Rly. Co., Ltd. v. Radhica Mohan Nath (28 C.W.N. 438) Held that for company-managed railways the notice under section 77 must be served upon the Agent, and that service upon a Traffic Manager was not sufficient. The Court treated this Division Bench decision as binding authority supportive of the proposition that notice must be served on the statutory head (Agent/Manager) and followed it.
Union of India v. Gujrat Tobacco Co. (59 C.W.N. 278; P.N. Mookerjee, J.) Reviewed the authorities on the point; expressed preference for Henderson, J.'s view but did not decisively overrule the competing line; refused to interfere in revision because substantial justice had been done in the particular case. The Court read this decision as not overruling the Division Bench view requiring service on the Manager and therefore did not accept it as authority that Indumati Saha was incorrect; it did not change the Court's conclusion that service on Chief Commercial Manager was insufficient.
Dominion of India v. Firm Museram Kishunprasad (A.I.R. 1950 Nagpur 85) Held that a plaintiff who omits the contracting railway and sues another railway undertakes the burden of strictly proving that the loss occurred on the railway he sues. The Court acknowledged the force of this proposition (relied upon by petitioner) but declined to decide the point finally because it was unnecessary to resolve it in the present case; it reserved the issue.

Court's Reasoning and Analysis

The Court's analysis proceeded from a plain reading of the relevant statutory provisions and from an examination of the authorities on whether notice under section 77 may be served on a sectional head such as the Chief Commercial Manager.

Statutory framework relied upon:

  • Section 77 of the Indian Railways Act requires that a claim for compensation for loss, destruction or deterioration of goods delivered for carriage must be preferred in writing to the Railway Administration within six months.
  • Section 3(6) of the Indian Railways Act defines "Railway Administration", where a railway is administered by Government, as the Manager of the Railway.
  • Section 140 of the Indian Railways Act provides that any notice or other document required or authorised by the Act to be served on a Railway Administration may be served, in the case of a Government-administered railway, on the Manager.
  • Section 80 of the Indian Railways Act permits a suit for compensation to be brought either against the Railway Administration to whom goods were delivered (the contracting railway) or against the Railway Administration on whose railway the loss occurred.
  • Section 80 of the Code of Civil Procedure (as referenced in the opinion) prescribes requirements for suits against the Central Government relating to railways, including service of notice on the General Manager of that Railway.

Applying these provisions, the Court reasoned that the statutory language unmistakably contemplates that the Railway Administration for Government-administered railways is the Manager and that service on the Manager is what the statute contemplates. Consequently, the Court held there was no warrant for the proposition that a single notice under section 77 served upon the Union of India as one entity (or upon a sectional head such as the Chief Commercial Manager) satisfied the statutory requirement where multiple railways were involved.

On the authorities, the Court observed conflicting lines of decisions. Some earlier single-judge decisions had held service on the Chief Commercial Manager sufficient, while later Division Bench decisions (including Indumati Saha and Assam Bengal Railway Co. v. Radhica Mohan Nath) had held that notice must be given to the statutory head (General Manager or Agent). The Court found the Division Bench authorities binding and persuasive because they gave effect to the unambiguous statutory language of sections 3(6) and 140. The Court therefore preferred and followed those decisions.

Regarding the contention that section 77 did not apply to short delivery, the Court examined the plaint and noted that the plaintiffs pleaded that consignments were "tampered with and contents taken away" while in the defendant's custody. The Court held that this allegation amounted to a loss of part of the consignment and therefore attracted section 77.

On the separate point that, under section 80 of the Indian Railways Act, the plaintiffs (having omitted to serve notice on the contracting railway) had the onus of proving the loss occurred on the Eastern Railway, the Court acknowledged the argument and the supporting Nagpur High Court authority but declined to decide the point finally because it was unnecessary, the defendant having succeeded on the primary (notice) point.

Holding and Implications

Core Ruling: The decree of the Small Cause Court Judge is set aside and the plaintiffs' suit is dismissed.

Direct consequences:

  • The Rule obtained by the Eastern Railway (petitioner) was made absolute and the Small Cause Court decree was quashed.
  • The plaintiffs' suit for Rs. 174-14-6 was dismissed.
  • Each party was ordered to bear their own costs ("In the circumstances of the case, the parties will bear their own costs").

Broader implications: The Court followed Division Bench authorities holding that, for Government-administered railways, the notice under section 77 of the Indian Railways Act must be served on the Manager (General Manager/Agent) rather than on a sectional or departmental head (such as the Chief Commercial Manager). The opinion did not purport to announce any broader or novel precedent beyond applying and following the existing Division Bench decisions and the plain statutory language.

    Union Of India v. Durgadutt Poddar And Ors. Opposite Parties.

    The Judgment of the Court was delivered by

    Lahiri, J.:— This Rule has been issued at the instance of the Union of India representing the Eastern Railway and it is directed against a decree for a sum of Rs. 174-14-6 together with costs and interest passed by the Small Cause Court Judge, Asansol. The facts of the case which are not in dispute may be stated as follows:— The plaintiffs opposite parites were consignees of two consignments of handkerchiefs from Ahmedabad to Bara-kar under Railway Receipts No. 45622 and 45623 bearing the same date, viz., 12.9.51 The consignments arrived at Barakar and when the plaintiffs went to take delivery, they were granted short delivery receipts of 29 dozens of handkerchiefs in one consignment and 13 dozens in another consignment. The plaintiffs alleged that this shortage in both the consignments was due to gross and wilful neglect and misconduct on the part of the defendant Railway and that the consignments were found to be “tampered with and contents taken away” while the consignments were in the charge and custody of the defendant. The plaintiffs accordingly claimed to recover a sum of Rs. 174-14-6 as compensation for the price of the handkerchiefs which were not delivered to them. In the plaint the defendant was described as Union of India representing (1) The Eastern Railway, (2) The Western Raliway and (3) the Northern Railway, because in the course of transit the consignments had to be carried over all these Railways. The suit was contested only by the Eastern Railway and in paragraph 7 of their written statement, they raised the plea that no legal, valid and sufficient notice either under sec. 77 of the Indian Railways Act or under sec. 80 of the Code of Civil Procedure had been served on the defendant and for the non-service of statutory notices, the suit was liable to be dismissed. It appears from the materials on the record that notice under section 77 of the Railways Act was served only upon the Chief Commercial Manager of the Eastern Railway and no notice) under the said section was served upon the other two Railways. The learned Small Cause Court Judge overruled the defence and decreed the plaintiff's claim against all the defendants holding that it was enough for the plaintiffs to cause only one copy of the notice under section 77 of the Indian Railways Act to be served on the Union of India as one entity instead of three such notices on Union of India representing the three Railways. Against that decree of the Small Cause Court Judge the defendant has obtained the present Rule. In the first place, it is to be observed that the learned Small Cause Court Judge was not right in holding that the three Railways constituted one entity under the law. The decision upon which he relied for this purpose, namely, the decision of this Court in the case of Dominion of India v. Jagadish Prosad Pannalal (1) [A.I.R (1949) Cal. 622], does not really decide that point. In that case Harries, C.J, pointed out that a particular result would follow if it were held that the different Railways in India were owned by the Government of India alone and quite a different result would follow if the Railways be treated as different entities. His Lordship did not actually decide that as a matter of law the different Railways had lost their independent existence as a result of the acquisition by the Central Government of all the different Railways of India. As a matter of fact, such a conclusion is impossible, so long as section 80 of the Indian Railways Act and sec. 80 of the Code of Civil Procedure are on the Statute Book. section 80 of the Indian Railways Act provides that a suit for compensation for loss, destruction or deterioration of goods may be brought either against the Railway Administration to which the goods were delivered by the consignor or against the Railway Administration on whose railway the loss, destruction or deterioration occurred. Section 80 of the Code of Civil Procedure provides that “no suit shall be instituted against the Government…………….. until the expiration of two-months next after the notice in writing has been delivered or left at the office…………..(b) in the case of a suit against the Central Government where it relates to a Railway, the General Manager of that Railway”. These two sections, in my opinion, definitely contemplate that for the purpose of a suit, the different Railways of India must be treated as separate legal entities and there is no warrant for the proposition that it is sufficient to serve one notice under section 77 against the Union of India as representing all the Railways.

    2. Mr. Bose appearing for the petitioner contended before me that the service of a notice upon the Chief Commercial Manager of the Eastern Railway is not a sufficient compliance with the requirements of section 77 of the Indian Railways Act and as such the suit instituted by the plaintiffs is liable to be dismissed.

    3. section 77 of the Indian Railways Act provides that a person shall not be entitled to compensation for the loss, destruction or deterioration of goods delivered to be carried unless his claim to compensation has been preferred by him in writing to the Railway Administration within six months from the date of delivery of the goods for carriage. Section 3(6) of the Indian Railways Act defines a Railway Administration, in the case of a Railway administered by Government, as the Manager of the Railway. Section 140 of the Indian Railways Act provides that any notice or other document required or authorised by this Act to be served on a Railway Administration may be served in the case of a Railway administered by the Government on the Manager. The language of the statute, therefore, leaves no room for doubt that a notice under section 77 is required to be served on the Manager of the Railway in the case of Railways which are administered by the Government, But it has been held in some of the cased decided by this Court that a notice under section 77 served upon the Chief Commercial Manager is sufficient compliance with the requirements of section 77 of the Indian Railways Act. See the cases of Samsul Haq v. Secretary of State (2) [I.L.R 57 Cal. 1286 (Lort-Williams, J.)]; Srislidhar Mondal v. Governor-General in Council (3) [49 C.W.N 240 (Henderson, J.]. These decisions were dissented from by Sen, J., in the case of Surendra Nath Poddar v. Governor-General of India in Council (4) (Civil Revision Case No. 1353 of 1947, decided on the 25th November, 1948 and reported in A.I.R 1952 Calcutta 341). The decision of Sen, J., was approved and followed by Mookerjee and Guha, JJ., in the case of Union Of India…Defendant, v. Indumati Saha…Plaintiff, Opposite Party. (5) (55 C.W.N 662). In this case it was pointed out that the notice contemplated by section 77 has to be given upon the General Manager and not to any sectional or departmental Head, because the General Manager can override the decision of all sectional Managers in the matter of compromising suits or allowing any claim. The view that a notice under sec. 77 of the Railways Act has to be served upon the Agent in the case of a company-managed railway and a notice upon the Traffic Manager is not sufficient for that purpose is also supported by a decision of another Division Bench of this Court in the case of The Assam Bengal Rly. Co., Ltd. v. Radhica Mohan Nath (6) (28 C.W.N 438). The decisions of these two Division Benches are binding upon me and I also agree with the reasons given by the learned Judges in those decisions and I prefer to follow them, more particularly because these decisions give effect to the unambiguous language of sections 3(6) and 140 of the Indian Railways Act.

    4. Mr. Ghose, appearing for the opposite parties, however, has placed strong reliance upon another Division Bench judgment of this Court in the case of Union of India v. Gujrat Tobacco Co., (7) (59 C.W.N 278). In this case P.N Mookerjee, J., with whom Guha Ray, J., concurred, has reviewed all the decisions on the point and has expressed his preference for the view taken by Henderson, J., in the case of Snstidhar Mandal v. Governor-General in Council (3) (49 C.W.N 240), but he has not dissented from the view taken by the Division Bench in the case of Union Of India…Defendant, v. Indumati Saha…Plaintiff, Opposite Party. (5) (55 C.W.N 662). He has expressly said that he was not prepared to say without a fuller consideration that the earlier view (that is, the view taken by Henderson, J.) was in law totally unacceptable. In the end, however, his Lordship refused to interfere with the decree passed by the Court below on the ground that as substantial justice had been done, he was not inclined to interfere in revision with that decree. As I read this case, it is no authority for the proposition that the view taken by Mookerjee and Guha, JJ., in the case of Union Of India…Defendant, v. Indumati Saha…Plaintiff, Opposite Party. (5) (55 C.W.N 662) was wrong. In this state of authorities and upon a plain construction of the different sections of the Indian Railways Act, I am inclined to hold that a notice of a claim under section 77 of the Indian Railways Act served upon the Chief Commercial Manager is not a sufficient compliance with the section.

    5. Mr. Ghose next contended that in this case no notice under section 77 was necessary, because section 77, according to him, does not apply to a case of short delivery of a consignment. Apart from authorities to the contrary, of which I may mention the case of The Assam Bengal Railway Co., Ltd. v. Radhica Mohan Nath (6) (28 C.W.N 438), I find that in paragraph 6 of the plaint the plaintiffs themselves were making a case that the consignments were tampered with and the contents taken away while they were in the charge and custody of the defendant-railways. This, in my opinion, means that according to the) plaintiffs themselves, upon the case made in their plaint, there was a loss of a part of the consignment and if it is a case of loss, it cannot be doubted that section 77 is attracted. For these reasons I am of the opinion that the decree made by the learned Small Cause Court Judge is contrary to law and as such is liable to be set aside.

    6. Mr. Bose appearing for the petitioner also raised a point that under section 80 of the Indian Railways Act the plaintiffs were not entitled to a decree in the absence of a finding that the loss, destruction or deterioration took place while the consignments were in the custody of the Eastern Railway. The argument of Mr. Bose is this: Section 80 gives the plaintiff an option of suing either the contracting railway or the railway, which is responsible for the loss, destruction or deterioration of the consignments, and in the present case, the plaintiffs did not choose to serve any notice under section 77 against the Western Railway which was the contracting railway, but the plaintiffs took upon themselves the onus of proving that the loss, destruction or deterioration of the consignment took place on the Eastern Railway. In support of this proposition Mr. Bose relied upon the decision of the Nagpur High Court in the case of Dominion of India v. Firm Museram Kishunprasad (8) (A.I.R 1950 Nagpur 85). In this case Bose, C.J, in delivering the judgment of the Bench made the following observations:

    “A plaintiff, who having his right's against the principal, (that is to say, the railway administration with whom he enters into a contract), chooses to omit that administration and sues the agent administration, undertakes a burden which he is required to discharge strictly.”

    7. According to Mr. Bose, if the plaintiff chooses not to proceed against the contracting raliway, he takes upon himself the onus of proving that the loss, destruction or deterioration took place in the railway which he chooses to sue. There is considerable force in this contention, but as it is not necessary for me to go into this question in this case, I refrain from giving my final opinion. The defendant succeeds on the first point raised by it.

    8. This Rule is made absolute. The decree made by the Small Cause Court Judge, Asansol, is set aside and the plaintiffs' suit dismissed.

    9. In the circumstances of the case, the parties will bear their own costs.

    A.K.D.G

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    Union Of India v. Durgadutt Poddar And Ors. Opposite Parties.
    (Jul 4, 1955)