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Union Of India v. Ganpatrai Sagarmull And Another

Calcutta High Court
Apr 26, 1982
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Structured Summary of the Opinion (R.N. Pyne, J.)

Factual and Procedural Background

The respondents, Messrs Ganpatrai Sagarmull (plaintiff No.1) and K.P. Ramaswami Nadar (plaintiff No.2), filed Suit No. 456 of 1965 against the Union of India seeking a decree for Rs. 10,017/- or alternatively an enquiry into damages and such sum as might be found due, along with interest, costs and other reliefs. The plaint alleged that plaintiff No.1 acted as commission agent of plaintiff No.2 and, in any event, if plaintiff No.1 was not competent to maintain the suit, plaintiff No.2 claimed damages for non-delivery. Notices were served under Section 77 of the Railways Act and Section 80 of the Civil Procedure Code (C.P.C), and the suit was filed in the ordinary original civil jurisdiction of the High Court.

The Union of India, in its written statement, primarily denied the claims and pleaded that a prior assignment/endorsement of the Railway Receipt had passed property to a third party (K.P. Ramaswamy Nadar Sons & Co.), so that plaintiff No.2 no longer had any right, title or interest and thus could not maintain the suit. The Union also argued that the endorsement purportedly made in favour of plaintiff No.1 as commission agent of that third party meant plaintiff No.1 also lacked a right to sue.

At trial the court framed and settled six issues (including whether the goods were booked under the relevant railway receipt, whether the plaintiffs had a cause of action, and whether the Court had jurisdiction). The trial judge answered issues Nos. 1, 3 and 5 in the affirmative for the plaintiffs, and held that plaintiff No.2 (K.P. Ramaswami Nadar) had no cause of action (issue No.2). Issue No.4 was not pressed by the defendant. The trial court entered a decree in favour of plaintiff No.1 for Rs. 7,632/- with interest at 6% per annum and costs.

The Union of India appealed. The appeal focussed solely on jurisdictional questions — specifically whether any part of the cause of action arose within the High Court's ordinary original jurisdiction and whether Section 80 of the Railways Act affected the jurisdiction conferred by Clause 12 of the Letters Patent. The appellate court dismissed the appeal with costs, upholding the trial judge's conclusions on these points.

Legal Issues Presented

  1. Whether any part of the cause of action arose within the ordinary original (original side) civil jurisdiction of the High Court (so as to permit suit under Clause 12 of the Letters Patent with leave).
  2. Whether Section 80 of the Railways Act (as amended) affects or curtails the original side jurisdiction of the High Court conferred by Clause 12 of the Letters Patent in suits for loss, damage or non-delivery of goods covered by railway receipts.

Arguments of the Parties

Appellant (Union of India)

  • The endorsement of a railway receipt, even if for valuable consideration, does not entitle the endorsee to sue the Railway for loss, damage or non-delivery of the goods; therefore the endorsement does not form part of the cause of action against the Railway.
  • Section 80 of the Railways Act, as amended, has affected (or limits) the jurisdiction conferred by Clause 12 of the Letters Patent in respect of suits mentioned in Section 80 — i.e., the statutory forum provisions in Section 80 are operative and limit the High Court's original side jurisdiction.

Respondent No.1 (Ganpatrai Sagarmull)

  • The endorsement of the railway receipt for valuable consideration in favour of plaintiff No.1 conferred upon it a right akin to that of a pledgee; such a pledge-like right can be enforced against the Railway (relying principally on the Supreme Court's decision in Morvi Mercantile Bank v. Union of India).
  • Section 80 of the Railways Act has not affected the original jurisdiction of the High Court conferred by Clause 12 of the Letters Patent; Clause 12 remains available where part of the cause of action arose within the local limits and leave was obtained.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Morvi Mercantile Bank v. Union of India, AIR 1965 SC 1954 Held that an endorsee (Bank) who advanced money against railway receipts could be in control of goods as pledgee and could maintain a suit for full value; an owner can make a valid pledge by transferring the railway receipt; mercantile agents can make valid pledges; under Contract Act s.180 a pledgee has same remedy as owner against third parties. The trial judge mainly relied on this Supreme Court decision and concluded that plaintiff No.1 acquired a valuable right in the nature of a pledge and therefore had a valid cause of action; the appellate court respectfully agreed and adopted that conclusion.
Oghadmal Choudhury v. Union of India, 1974 Cal LJ 420 (Division Bench) Held that Section 20(c) of the C.P.C. would not apply to suits covered by Section 80 of the Railways Act; special provisions in the Railways Act should be read and the general provision (S.20) would not affect the special jurisdiction. Referred to as one of the conflicting decisions on whether S.20 C.P.C. is affected by Section 80; noted by the court in the survey of precedents and in discussing differing approaches to the interplay between general and special forum provisions.
Bengal Coal Co. Ltd. v. Union of India, (1979) 2 Cal LJ 363 (Division Bench) Held that Section 80 of the Railways Act does not override Section 20 of the C.P.C.; S.20 remains applicable and Section 80 provides additional forums rather than excluding S.20. Referred to as another decision in the conflicting line of authorities; the court observed this case dealt with S.20 C.P.C. (not Clause 12 of the Letters Patent) and that the effect of S.4 C.P.C. was apparently not considered in that decision.
Jagannath Chetram v. Union of India, Appeal No. 191 of 1966 (Division Bench, unreported) Held that endorsement for valuable consideration entitles the endorsee to a right to have delivery but not necessarily a right to sue on the basis of the original consideration; also held that provisions of Section 20 C.P.C. limiting or affecting Section 80 will have no application for determining forum for suits under Section 80. The present court noted this decision but observed it was not directly relevant because the trial judge had relied on Morvi Bank. The Division Bench in that earlier appeal dismissed the appeal because no part of the cause of action arose in the High Court's original jurisdiction.
Union of India v. C.R. Prabhanna & Sons, AIR 1977 Kant 132 Interpreted the substituted Section 80 (1961 amendment) as enacting a complete code regarding courts in which suits under Section 80 may be filed, thereby excluding operation of general provisions of Section 20 C.P.C.; special provisions exclude general provisions. Quoted with approval for the proposition that Section 80 specifies the courts before whom such suits could be filed and that special provisions exclude general provisions; the appellate court considered and discussed this reasoning as part of the wider authorities on forum selection.
South India Corporation (P.) Ltd. v. Secretary, Board of Revenue, Trivandrum, AIR 1964 SC 207 Cited for the legal principle that special provisions may exclude general provisions (example of special v. general rule). Referenced (via quotation in other judgments) as an authority for the maxim that special provisions exclude general provisions; considered in the context of arguments about whether Section 80 excludes Clause 12 jurisdiction.
Delhi Administration v. Ram Singh, AIR 1962 SC 63 Illustrative authority on interpretation where special statutory provisions can displace general provisions. Referred to in the chain of authorities discussed by the court when examining whether special statutory provisions (Section 80) exclude general jurisdictional provisions.
Dharni Dhar v. Dist. Co-op. Bank, (1969) 3 SCC 694 Cited for the rule that exclusion of jurisdiction of civil courts by statute is not to be readily inferred; presumption against exclusion. Used by the court to support the proposition that jurisdiction of civil courts (and superior courts) is not taken away except by clear words or necessary implication; part of the court's reasoning against implying ouster of Clause 12.
Abdul Wahid v. Bhawani, AIR 1966 SC 1718 Authority supporting the presumption against statutory exclusion of civil jurisdiction. Relied upon as part of the jurisprudence that exclusion of jurisdiction must be clearly and expressly stated or necessarily implied; formed part of the appellate court's reasoning.
Raichand v. Union of India, AIR 1964 SC 1268 Another decision cited for the general principle against readily inferring exclusion of civil jurisdiction by statute. Mentioned among a group of Supreme Court authorities used to bolster the presumption against implied ouster of jurisdiction.
Subbayya v. State of A.P., AIR 1964 SC 322 Authority cited in the same context (presumption against statutory exclusion of civil jurisdiction). Included by the court as part of the supporting authorities for the principle that exclusion of civil jurisdiction requires clear statutory language.
Sri Devagiri Temple v. Pattabhi Rami Reddi, AIR 1967 SC 781 Also cited for the presumption that statutes do not exclude civil courts' jurisdiction except by express words or necessary implication. Used with the other Supreme Court authorities to support the court's statutory interpretation on Clause 12 and Section 80.
Municipal Council, Palai v. T.J. Joseph, AIR 1963 SC 1561 Authority on the doctrine of implied repeal and the presumption against it — courts should try to give effect to both the old and new enactments unless they are irreconcilably inconsistent. Relied on by the court to support the conclusion that Clause 12 was not impliedly repealed by Section 80 and that both enactments should be harmoniously construed where possible.
Tabernacle Permanent Building Society v. John Knight, 1892 AC 298 Referenced for the general interpretive principle governing the relationship between special and general statutes. Quoted as part of the authorities that explain how to reconcile special and general enactments; applied in concluding there was no conflict requiring Section 80 to override Clause 12.

Court's Reasoning and Analysis

The court's reasoning unfolded in two linked stages: (A) the question whether plaintiff No.1 had a cause of action against the Railway, and (B) whether Section 80 of the Railways Act affected the High Court's original side jurisdiction under Clause 12 of the Letters Patent.

(A) Cause of action / entitlement to sue

  • The trial judge examined authorities on whether endorsement of a railway receipt for valuable consideration gives the endorsee a right to sue the Railway for loss, damage or non-delivery.
  • The trial judge relied mainly on the Supreme Court decision in Morvi Mercantile Bank v. Union of India (AIR 1965 SC 1954), which found that where the Bank advanced money and obtained endorsements and related documents the Bank effectively stood as pledgee in control of the goods and could sue for full value; that decision also held that an owner can pledge by transferring the railway receipt and mercantile agents and persons with defective title can make valid pledges.
  • Applying Morvi Bank, and on the evidence in the suit, the court concluded that plaintiff No.1 acquired a valuable pledge-like right and therefore had a valid cause of action against the Union of India. The appellate court expressly agreed with the trial judge's conclusion and reasoning on this point.

(B) Jurisdiction — Clause 12 of the Letters Patent v. Section 80 Railways Act

The court analysed the interaction between Clause 12 (general original jurisdiction of the High Court, permitting suits where cause of action arose in part within local limits on obtaining leave) and the amended Section 80 of the Railways Act (which prescribes courts in which suits for loss, damage or non-delivery of goods may be instituted).

The court surveyed conflicting authorities on whether statutory forum provisions in Section 80 displaced the general forum rules of the Civil Procedure Code (S.20) or the High Court's Clause 12 jurisdiction. It noted that many earlier decisions addressed S.20 C.P.C. rather than Clause 12 and that the earlier Division Bench decisions reached differing conclusions.

The appellate court then set out a series of legal propositions and applied them to conclude Section 80 did not curtail Clause 12:

  1. Textual and grammatical construction: Section 80 uses the word "may" (permissive) in describing the courts in which such suits "may be instituted." The court read this as creating additional forums, not an exclusive list. If Parliament had intended exclusivity it would have used stronger language.
  2. Absence of limiting clause analogous to S.4 C.P.C.: Unlike S.4 C.P.C., Clause 12 of the Letters Patent contains no express limiting clause that would be displaced by Section 80; in the absence of such a limiting provision the Court was unwilling to hold Clause 12 curtailed.
  3. Special vs general rules: Where possible, special and general enactments should be harmoniously construed; if irreconcilable, the special law prevails. The court found no irreconcilable conflict between Clause 12 and Section 80 and therefore gave effect to both — Clause 12 confers general jurisdiction while Section 80 confers additional, permissive forums for suits of the nature specified.
  4. Presumption against exclusion of jurisdiction: The court relied on established authorities to state the presumption that statutes do not exclude civil or superior court jurisdiction except by express words or necessary implication; exclusion is not to be readily inferred.
  5. Requirement for clear words to oust superior court jurisdiction: The court stressed that to oust the jurisdiction of a superior court there must be clear statutory language or necessary implication; absent that the Court's jurisdiction should not be assumed to be excluded.
  6. Presumption against implied repeal: The court observed the presumption against implied repeal and that the legislature's failure to insert an express repealing clause tends to indicate that earlier jurisdictional provisions were not intended to be displaced unless the two enactments are wholly repugnant. Applying that principle the court found Clause 12 was not impliedly repealed.

On these combined grounds the court concluded that Section 80 of the Railways Act did not affect the High Court's jurisdiction conferred by Clause 12 of the Letters Patent; Section 80 merely provides additional forums in which suits of the nature specified may be instituted.

Holding and Implications

Holding: The appeal was dismissed. The court held that (1) plaintiff No.1 had a valid cause of action by virtue of the endorsement and the pledge-like rights recognised in Morvi Mercantile Bank v. Union of India, and (2) Section 80 of the Railways Act does not curtail or oust the High Court's original side jurisdiction under Clause 12 of the Letters Patent; Section 80 provides additional, permissive forums for suits of the nature referred to therein.

Implications:

  • Direct effect on the parties: The trial decree in favour of plaintiff No.1 (Rs. 7,632/- with interest at 6% and costs) stands as the appeal was dismissed with costs.
  • Jurisdictional consequence: Claimants bringing suits for loss, damage or non-delivery of goods covered by railway receipts retain the option, where part of the cause of action arose within the local limits and leave under Clause 12 has been obtained, to sue in the High Court's ordinary original civil jurisdiction; Section 80 supplies additional permissible fora but does not, by itself, oust Clause 12 jurisdiction.
  • Precedential note: The court's reasoning rests on statutory interpretation principles (text, presumption against ouster, harmony of statutes, and presumption against implied repeal) and on the Supreme Court authority in Morvi Mercantile Bank. The opinion engages with conflicting local precedents but concludes Clause 12 remains available; the practical effect is to preserve the High Court's existing original-side jurisdiction in the circumstances described by the court.

Disposition: Appeal dismissed (S.C. Ghose, C.J., agreed).

Show all summary ...

R.N Pyne, J.:— The respondents Messrs Ganpatrai Sagarmull and K.P Ramaswami Nadar, as plaintiffs in the Court of the first instance, filed Suit No. 456 of 1965 against Union of India, the defendant in the suit and the appellant before us, for a decree for Rs. 10,017/- in favour of either or alternatively, an enquiry into demages and a decree for such sum as might be found due, interests, costs and other reliefs.

2-3. The respondents' case as stated in the plaint was as follows:—

The respondent No. 1, Ganpatrai Sagarmull acted as a commission agent of the respondent No. 2, K.P Ramaswami, that in any event if the respondent No. 1 was not competent to maintain the suit, the respondent No. 2 was entitled to the said sum by way of damages for non-delivery. After service of the due notices under Section 77 of the Railways Act, 1890 and Section 80 of C.P.C the respondents on or about 16th March, 1965 filed the said suit against the appellant in the ordinary original civil jurisdiction of this Court.

4. The written statement filed on behalf of the appellant (who was the defendant in the trial Court) mainly consists of denials. It was alleged that in view of the assignment of the Railway Receipt and the passing of property in the goods thereby by the respondent No. 2 in favour of the said K.P Ramaswamy Nadar Sons & Co., the respondent No. 2 ceased to have any right, title or interest in the said Railway Receipt or the goods thereunder. Therefore, the respondent No. 2 was not entitled to and could not maintain the action or claim any relief on the said Railway Receipt or in respect of the goods thereunder.

5. It was further alleged that the endorsement or assignment of the Receipt and the passing of the property having been made in favour of the respondent No. 1 as the commission agent of the said K.P Ramaswamy Nadar Sons & Co. and the respondent No. 1 having acted for or on behalf of the said K.P Ramaswamy Nadar Sons & Co. as such agents, the respondent No. 1 was also not entitled to and could not maintain any action or claim any relief on the said Railway Receipt or the goods covered thereby. According to the Union of India, the suit was not maintainable.

6. Following issues were raised and settled at the trial:—

(1) Were 8 bags of small cardamoms booked under the Railway Receipt No. C558753, dated 10th April, 1964?

(2) Have the plaintiffs Nos. 1 and/or 2 any cause of action against the defendant?

(3) Has this Court jurisdiction to entertain this suit?

(4) Were the goods lost due to circumstances beyond the control of the defendant as alleged in paragraph 9 of the written statement?

(5) Is the value of the said 8 bags of cardamoms Rs. 10,017/- as alleged?

(6) To what relief, if any, are the plaintiffs entitled?

7. Learned trial Judge answered issues Nos. 1, 3 and 5 in the affirmative and in favour of the plaintiffs, that is, the respondents in this appeal. Regarding issue No. 2, the learned trial Judge held that the plaintiff No. 2, (the respondent No. 2 in this appeal), K.P Ramaswami Nadar, had no cause of action in the suit and to that extent it was answered in the negative and in favour of the defendant i.e the appellant in this appeal. Issue No. 4, however, was not pressed by the defendant. The learned trial Judge passed a decree in favour of the plaintiff No. 1 (i.e, respondent No. 1) for Rupees 7,632/- with interest at 6% per annum and cost.

8. In this appeal parties argued only on the question of jurisdiction. The controversy is whether any part of the cause of action had arisen within the ordinary Original Civil Jurisdiction of this Court and whether the jurisdiction conferred upon this Court by Cl. 12 of the Letters Patent has, in any way, been affected by Section 80 of the Railways Act. In the above view of the matter, any discussion on the other issues raised in the suit does not appear to be necessary.

9. On the question of jurisdiction, the learned trial Judge came to the conclusion that the plaintiff No. 1 (i.e, respondent No. 1 herein) bad a valid cause of action in the suit against the defendant (i.e, the appellant) and further inasmuch as a part of such cause of action had arisen within the original jurisdiction of this High Court and as the suit was filed with leave under Cl. 12 of the Letters Patent it was maintainable.

10. Regarding the question as to whether this Court had jurisdiction to try the suit, two questions came up for consideration i.e, (i) whether any part of the cause of action arose within the original side jurisdiction of the Court and (ii) whether S. 80 of the Railways Act in any way affected the original side jurisdiction of this Court conferred by Clause 12 of the Letters Patent.

11. On the question as to whether any part of the cause of action had arisen within the jurisdiction of this Court the learned trial Judge considered various decisions, as Will fully appear from the judgment, relating to the point as to whether an endorsement of the railway receipt for valuable consideration would confer upon the endorsee any right to sue the Railway for damage, loss or non-delivery of the goods covered thereby. The learned trial Judge, however, relying on a decision of the Supreme Court in the case of Morvi Mercantile Bank v. Union of India, AIR 1965 SC 1954 came to the conclusion that the plaintiff No. 1 (respondent No. 1 herein) acquired a valuable right to the goods in the nature of a pledge or a security and that its position in the instant case appeared to be the same as that of the Bank in the above case. Mainly relying on the above decision the learned trial Judge came to the conclusion that the plaintiff No. 1 (respondent No. 1 herein) had a valid cause of action in the suit and the same arose within the original jurisdiction of this Court.

12. On the question as to whether S. 80 of the Railways Act had, in any way, affected the original jurisdiction of this Court the learned Judge also considered various decisions relevant to the point as will appear from his judgment and upon such consideration his Lordship held that so far as this Court is concerned Sec. 80 of the Railways Act did not affect the jurisdiction of this Court to try suits against the Railway where any part of the cause of action had arisen within the original jurisdiction of this Court and leave was obtained under Cl. 12 of the Letters Patent. On the above point the learned trial Judge observed as follows:—

“It is to be noted that this suit has been filed in this Court under Cl. 12 of the Letters Patent. Under this clause this Court is empowered to try and determine suits of every description, in all cases, if the cause of action shall have arisen in part within the local limits of the ordinary original jurisdiction of this Court in case the leave of the Court has been obtained first. The only limitation imposed in this clause is that the High Court shall not have such original jurisdiction in cases falling within the jurisdiction of the Small Cause Court at Calcutta. The language of Cl. 12 is not the language of Sec. 4 of the Civil P.C Therefore, even if it be held that Cl. 12 of the Letters Patent affects the special jurisdiction conferred by S. 80 of the Railways Act, in the absence of any inherent limiting clause as in Sec. 4 of the Civil P.C Section 80 of the Railways Act should not be so construed as to take away the jurisdiction of this Court to try such suits.

Section 80 of the Railways Act by itself does not profess to override all other laws or any particular law for the time being in force.”

13. Relying on the various decisions of the Supreme Court as will appear from the judgment the learned trial Judge observed that exclusion of the jurisdiction of Civil Court was not to be readily inferred and that Sec. 80 of the Railways Act did not create special rights or special liabilities nor did it constitute any special Tribunal for adjudication of such right or liabilities.

14. On the question of jurisdiction the respective contentions of the parties may be stated.

15. According to the appellant Union of India the endorsement of the railway receipt even for valuable consideration would not entitle the endorsee to sue the Railway for loss, damage or non-delivery of the goods and as such it does not form a part of the cause of action. Further, S. 80 of the Railways Act as amended, has affected the jurisdiction of this Court conferred by Clause 12 of the Letters Patent in respect of the suits mentioned in S. 80 of the Railways Act.

16. According to the respondent No. 1, in the instant case, endorsement of the railway receipt for valuable consideration in its favour has conferred upon it a right of the pledgee and such right can be enforced against the Railway. Further, S. 80 of the Railways Act, has not in any way, affected the original jurisdiction of this Court conferred by Cl. 12 of the Letters Patent.

17. As stated earlier mainly relying on the decision of the Supreme Court in the case of Morvi Mercantile Bank v. Union of India (AIR 1965 SC 1954) (supra), the learned trial Judge came to the conclusion that the respondent No. 1 had a valid cause of action against the appellant. Hence a reference to the said case may be made.

18. In Morvi Bank's case (AIR 1965 SC 1954) the facts were that the consignor endorsed three railway receipts in favour of the plaintiff-Bank against an advance of a sum of money which was less than the actual value of the goods. The consignment under the railway receipts did not reach their destination. The Bank as an endorsee for Valuable consideration sued the Union of India for recovery of full value of the goods by way of damages. The Supreme Court found on the evidence adduced that the Bank had advanced money on the security of the railway receipt and the transactions relating thereto, i.e, advance of a loan, the execution of Promissory Notes and the endorsement of the railway receipts together formed one transaction, and their combined effect was that the Bank was in the control of the goods consigned under the said railway receipts. The majority decision in Morvi Bank's case was that the Bank as a pledgee could maintain the suit for the full value of the consignment. It however left open the point whether the transfer of a railway receipt would necessarily transfer the contract of carriage embodied therein.

18-A. The Supreme Court also held that:

“(a) An owner of goods can make a valid pledge by transferring the railway receipt representing the goods;

(b) Mercantile agents though they do not possess the full bundle of the rights of the consignor can make a valid pledge by bona fide transfer of Documents of Title and the same is true of owners with defective titles;

(c) Construing S. 180 of Contract Act, the Supreme Court held that a pledgee has the same remedy as the owner of the goods would have against a third person for deprivation of the said goods or injury to them.”

19. Applying the principle laid down in the above Supreme Court decision and on the basis of evidence given in the suit it was held that the plaintiff No. 1 (respondent No. 1 herein) had a valid cause of action in the suit. We respectfully agree with the conclusion of learned trial Judge and his reasons for the same.

20. Next point is if the jurisdiction of this Court as conferred by Cl. 12 of the Letters Patent has been affected by Sec. 80 of the Railways Act in respect of suits mentioned in the section. This point was mainly contested in this appeal. The provisions of Section 80 of the Railways Act after 1961 amendment are as follows:—

“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 the railway administration,

(b) if the passenger was, or the 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, 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.”

21. There are various decisions on the question as to the whether jurisdiction conferred by S. 20 of C.P.C has been affected by Sec. 80 of the Railways Act. Although ouch decisions are conflicting yet a brief reference thereto may be made.

22. A Division Bench presided over by Sankar Prosad Mitra, C.J and A.K Janah, J. in the case of Oghadmal Choudhury v. Union of India, 1974 Cal LJ 420, held that S. 20(c) of C.P.C would not apply to a suit covered by S. 80 of the Railways Act. According to their Lordships the special provisions in the Railways Act are to be read. In the tight of S. 4 of C.P.C Section 4 of the Code uses the expression “otherwise affect”. The dictionary meaning of the word ‘affect’ in the context in which it is used under Sec. 4 of the Code is “to produce an effect or change upon”. According to the Division Bench there is no doubt that Section 20(c) of the C.P.C produces an effect or change upon the special jurisdiction conferred by S. 80 of the Railways Act and from this point of view S. 20(c) would not apply to a suit covered by S. 80 of the Railways Act.

23. In another Division Bench decision (presided ever by M.M Dutt and R.K Sharma, JJ.) in the case of Bengal Coal Co. Ltd. v. Union of India, (1979) 2 Cal LJ 363, it was held that under S. 80 of the Railways Act a suit can be instituted in a Court having jurisdiction over the place at which the goods were delivered for carriage or in the Court having jurisdiction over the place in which the destination station lies. But Section 80 of the Railways Act does not override the provisions of S. 20 of the C.P.C under which a suit can be instituted in a Court within the local limits of whose jurisdiction the defendant resides or carries on business or works for gain. Defendant South Eastern Railway carries on business at Garden Reach within the jurisdiction of Alipore Court. The suit was therefore rightly instituted there as per provision of Sec. 20, C.P.C In addition to the forum where the suit can be instituted as per S. 20 of Civil P.C the same can be instituted id other forums under S. 80 of the Railways Act. It however appears that in this case the effect of S. 4 of C.P.C was not considered.

24. The above cases dealt with the question of jurisdiction conferred by Section 20 of C.P.C and not by Cl. 12 of the Letters Patent.

25. In connection with the question as to whether Cl. 12 of the Letters Patent has been affected by S. 80 of the Railways Act the appellant relied on an unreported decision of a Division Bench presided over by A.K Sarkar and D.C Chakrabarti, JJ. in Appeal No. 191 of 1966 (Jagannath Chetram v. Union Of India). In that case two points were decided. It has been held that a suit for compensation for loss or short delivery of the goods consigned is one based on the breach of the original contract and that an endorsement even though for valuable consideration only entitles the endorsee to a right to have delivery of the goods and not a right to sue on the basis of original consideration. This finding however is not relevant for the instant appeal in view of the fact that the learned trial Judge relied on Morvi Bank's case (AIR 1965 SC 1954) in coming to the conclusion that the plaintiff No. 1 (i.e respondent No. 1 herein) had a valid cause of action against the defendant (i.e appellant in this appeal) as stated hereinbefore. The Division Bench has observed that if any of the provisions of Section 20 of C.P.C does limit or otherwise-affect the special jurisdiction conferred by Section 80 of the Railways Act such provision of S. 20 of C.P.C shall have no application for the determination of the forum for a suit for loss or non-delivery of goods. It was held that even though S. 80 of the Railways Act did not expressly or by implication repeal S. 20 of C.P.C the relevant provision of S. 20 of C.P.C could not be invoked for determining the forum. The Division Bench referred to the cases of Oghadmal Choudhury v. Union of India, 1974 Cal LJ 420 (supra) and a decision of Karnataka High Court in the case of Union of India v. C.R Prabhanaa & Sons, AIR 1977 Kant 132.

26. In the case of Union of India v. C.R Prabhanna & Sons (supra) it was observed as follows:—

“There was no reference to the territorial jurisdiction of the Courts in which such suits for compensation under S. 80 could be instituted. By Act 39 of 1961, Sec. 80 was substituted by the new section extracted above. While doing so, the Parliament specifically mentioned in that section the Courts before whom such suits could be filed. I am of the view that the Parliament when it enacted the new S. 80 intended to specify the Courts before whom alone suits under Sec. 80 of the Railways Act could be filed. It should be remembered that S. 20 of the Civil P.C was in existence even at the time when Sec. 80 was substituted in the year 1961. If the Parliament intended that S. 20 of the Civil P.C should continue to be applicable, then there was no need for specifying in S. 80 the Courts which could entertain the suits referred to therein as they would also fall within the category of Courts specified in S. 20 of the Civil P.C While interpreting statutory provisions we should bear in mind that no legislature would ordinarily indulge in superfluity.

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Section 80 of the Railways Act enacts a complete Code regarding the Courts before whom suits referred to therein can be filed. Special provisions enacted in S. 80 exclude the operation of the general provisions of S. 20 of the Civil P.C It is well known that special provisions exclude the operation of general provisions. (See South India Corporation (P.) Ltd. v. Secy., Board of Revenue, Trivandrum, AIR 1964 SC 207 and Delhi Administration v. Ram Singh, AIR 1962 SC 63).”

27. In Appeal No. 191 of 1966 the Division Bench of this Court held that “In the facts and circumstances of the case and in view of the law discussed it cannot be said that any part of cause of action for the present suit did arise within the original civil jurisdiction of this Court. Accordingly resort cannot be had to Cl. 12 of the Letters Patent. Further Cl. 44 of the Letters Patent makes the provisions of Letters Patent subject to the legislative powers of the Indian Legislature”.

28. Excepting the observation to the effect that Cl. 44 of the Letters Patent makes the provisions of Letters Patent subject to the legislative powers of the Indian Legislature there is no finding of the Division Bench in Appeal No. 191 of 1966 on the question with which we are concerned in this appeal viz., whether S. 80 affects the jurisdiction of this Court as conferred by Cl. 12 of the Letters Patent. The Division Bench dismissed the appeal on the ground that no part of the cause of action in that case arose within the original civil jurisdiction of this Court.

29. The question therefore is if the jurisdiction as conferred by Cl. 12 of the Letters Patent has in any way been affected by Section 80 of the Railways Act.

30. Clause 12 of the Letters Patent (1865) provides that the High Court in the exercise of its ordinary original civil jurisdiction shall be empowered to receive, try and determine suits of every description, if, in the case of suits for land or other immovable property, such land or property shall be situated, or in all other cases if the cause of action shall have arisen, either wholly, or, in case the leave of the Court shall have been first obtained, in part, within the local limits of the ordinary original jurisdiction of the said High Court, or if the defendant at the time of the commencement of the suit shall dwell, or carry on business, or personally work for gain within such limits; except that the said High Court shall not have such original jurisdiction in cases falling within the jurisdiction of the Small Cause Court at Calcutta, in which the debt or damage, or value of the property sued for, does not exceed one hundred rupees.

31. Clause 44 of the Letters Patent provides as follows:

“And we do further ordain and declare, that all the provisions of these our Letters Patent are subject to the legislative powers of the Governor-General in Legislative Council and also of the Governor-General in Council under S. 71 of the Government of India Act, 1915, and also of the Governor-General in cases of emergency under Sec. 72 of that Act, and may be in all respects amended and altered thereby.”

32. After giving anxious consideration we are of the view that the jurisdiction as conferred by Cl. 12 of the Letters Pateal has not been affected by S. 80 of the Railways Act for the following reasons:—

(a) It is to be noted that S. 80 of the Railways Act says that suits of the nature mentioned in the said section may be instituted in the Courts as mentioned in last limb of the section. The word ‘may’ in the context should not be read as ‘shall’. Therefore, the section is an enabling section. If the intention of the legislature was that suits of the nature as mentioned in S. 80 should be filed only in the forum as mentioned in the section and in no other forum then the legislature would have used appropriate words or expression conveying such intention. Therefore, Sec. 80 of the Railways Act creates additional forums for filing of suits of the nature mentioned in the section.

(b) In the absence of any provision in the Letters Patent like S. 4 of the Civil P.C the jurisdiction conferred by Cl. 12 of the Letters Patent cannot be said to have been taken away or curtailed by S. 80 of the Railways Act on the basis of the principle laid down in the cases mentioned above.

(c) The provisions of the Letters Patent are subject to the legislative powers of the Legislature. Therefore it is to be seen if the general provisions of Cl. 12 of the Letters Patent has been affected by the Special Law viz., Sec. 80 of the Railways Act. In our view, if there is any conflict between the general law and the special law then the provisions of special law would prevail. If the two laws can be harmoniously construed so as to preserve the right conferred by the two then such construction is to be adopted However, in case of conflict the special statute should be given preference. See Maxwell on Interpretation of Statute (12th Edn.), pp. 191 and 193 and Tabernacle Permanent Building Society v. John Knight. 1892 AC 298. In our view, there is no conflict or inconsistency between Cl. 12 and Section 80 Clause 12 confers general jurisdiction upon the High Court to entertain suits. Jurisdiction conferred by S. 80 may be invoked only in cases of suits of the nature mentioned therein. Further, use of the word ‘may’ makes the section permissive. It only confers additional right or additional forum to which recourse may be taken only in cases of the suits of the nature mentioned in the section. Therefore, in respect of suits of the nature mentioned in S. 80 of the Railways Act a claimant is given the option of taking advantage of an additional forum.

(d) Exclusion of the jurisdiction is not to be readily inferred and there is a presumption against exclusion of jurisdiction of Civil Court by a statute. The exclusion of the jurisdiction of Civil Courts to entertain Civil Cases will not be assumed unless the relevant statute contains an express provision to that effect or leads to a necessary and inevitable implication of that nature. The mere fact that a special statute provides for certain remedies may not by itself necessarily exclude the jurisdiction of the Civil Courts to deal with a case brought before it in respect of the matters covered by the said statute. See Dharni Dhar v. Dist Co-op. Bank, (1969) 3 SCC 694; Abdul Wahid v. Bhawani, AIR 1966 SC 1718; Raichand v. Union of India, AIR 1964 SC 1268; Subbayya v. State of A.P, AIR 1964 SC 322 and Sri Devagiri Temple v. Pattabhi Rami Reddi, AIR 1967 SC 781.

(e) As to the ousting of jurisdiction of a superior Court the general rule undoubtedly is that a jurisdiction of superior Court is not taken away except by express words or by necessary implication. Unless there is clear language in the statute which is alleged to have that effect the jurisdiction of the Court must not be taken to be excluded. A general rule applicable to the construction of statute is that there is not to be presumed without express words any authority to derive the Court of a jurisdiction it had previously exercised. Very clear words will be required to oust altogether the jurisdiction of the Courts in the matter of private rights. See Craies on Statute Law (17th Edition), page 123.

(f) It is undoubtedly true that the legislature can exercise the power of repeal by implication. But it is equally well settled that there is a presumption against an implied repeal. Upon the assumption that the legislature enacts law with a complete knowledge of all existing laws pertaining to the same subject the failure to add a repealing clause indicates that the intent was not to repeal existing legislation. This presumption will be rebutted if the provisions of the new Act are so inconsistent with the old one that the two cannot stand together.

(g) There is no rule of law to prevent repeal of a special statute by a later general statute and, therefore, where the provisions of the special statute are wholly repugnant to the general statute, it would be possible to infer that the special statute was repealed by the general enactment. A general statute applies to all persons and localities within its jurisdiction and scope as distinguished from a special one which in its operation is confined to a particular locality. Therefore, where it is doubtful whether the special statute was intended to be repealed by the general statute the Court should try to give effect to both the enactments as far as possible. See Municipal Council, Palai v. T.J Joseph, AIR 1963 SC 1561. In the above view of the matter it cannot be said that Cl. 12 has been impliedly repealed by S. 80

33. We are, therefore, of the view that the jurisdiction conferred by Cl. 12 of the Letters Patent has not been affected by Section 80 of the Railways Act but S. 80 only provides for additional forum for filing of the suits of the nature mentioned therein.

34. For all the reasons stated hereinbefore, in our view, the appeal should fail. This appeal is, therefore, dismissed with cost.

S.C Ghose, C.J:— I agree.

Appeal dismissed.