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Summary of Opinion — Choudhary, J. (with Naitayan, J. concurring)

Factual and Procedural Background

On 20 February 1944 the plaintiff purchased and booked 75 tins of butter (37½ maunds) from Kamtaul station (O.T. Railway) for delivery to Chapra station (O.T. Railway) under railway receipts Nos. 286503 and 284505. The consignments arrived at Chapra on 21 February 1944 by the 143 up parcel express at 7:05 a.m. The plaintiff endorsed the railway receipts upon arrival and handed them to the station master. The plaintiff's case is that the butter was to be delivered to him at Chapra so he could supply it to Mr. G.P. Saraf (a military supplier) on 21-2-1944.

The consignments were not delivered at Chapra; they were, instead, carried to Bhatpar Rani station where they were unloaded. Attempts by the plaintiff to have the consignments rebooked and delivered at Chapra failed, and the butter deteriorated and spoiled. The plaintiff sued for recovery of amounts totalling Rs. 6,950/8/6, including the price of the butter, claimed profit, interest, general damages, and costs incurred in attempting delivery.

Defendant No.1 was the Central Government and Defendant No.2 was the O.T. Railway (the defendant in the pleadings). Defendant No.2 contested the suit and advanced a defence that the overcarriage and nondelivery were not due to railway negligence but were caused by the plaintiff's dishonest conduct — that the plaintiff had colluded to prevent unloading at Chapra and the tins were found and detained at Bhatpar Rani, with further allegations concerning the plaintiff's failure to produce a required permit and refusal to pay freight. The Subordinate Judge tried the case, made findings adverse to the plaintiff (concluding collusion and overcarriage in an unbooked condition), dismissed the suit, and the plaintiff appealed.

Legal Issues Presented

  1. Whether the defendant (the Railway) is liable for the overcarriage and spoilage of the consignments because of negligence or misconduct of its servants, or whether the overcarriage resulted from collusion by the plaintiff with railway employees (i.e., factual determination of cause).
  2. Whether the defendant was permitted at trial to adduce evidence of a case that was not pleaded in its written statement (i.e., the propriety of receiving evidence on a point not raised in pleadings and whether such evidence must be excluded).
  3. What damages, if any, the plaintiff is entitled to recover (price of butter, profit, loss of expenses, general damages) and the applicable interest (pre-suit and post-suit).
  4. Whether the plaintiff bore any obligation to procure a permit (for transporting butter across provincial boundaries) and whether failure to produce such permit relieves the Railway of liability.

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • The consignments were booked to Chapra, the plaintiff endorsed the receipts and handed them to the Chapra station master on arrival, and the goods ought to have been delivered to him there.
  • The failure to deliver at Chapra and the overcarriage to Bhatpar Rani were due to culpable negligence and misconduct of railway servants, not any collusion by the plaintiff.
  • Attempts were made to have the consignments rebooked for Chapra but delivery could not be secured; consequently the butter spoiled and the plaintiff suffered loss and expenses.
  • The plaintiff claimed specific monetary reliefs: the price of the butter, profit (20% claimed), interest (12% claimed pre-suit), general damages, and costs incurred in taking steps for delivery.

Respondent's (Defendant's) Arguments

  • The defendant denied that the consignments were overcarried due to railway negligence and alleged that the plaintiff, with dishonest motive, prevented unloading at Chapra and allowed the tins to be taken to Bhatpar Rani, where the tins were found near the eastern platform and the Station Master suspected foul play.
  • It was alleged that the plaintiff colluded with railway staff: either the tins had been unloaded and later reloaded by the plaintiff in collusion with staff, or the plaintiff never allowed unloading at Chapra.
  • The Station Master of Bhatpar Rani reported the matter to police, the tins were detained pending inquiry, and the plaintiff failed to produce a Magistrate's permit required to book butter from Uttar Pradesh to Bihar — the defence claimed the owner refused to pay freight and did not produce the permit, so the consignments remained undelivered and were ultimately taken into possession by police under Defence of India Rules.
  • The defendant adduced evidence at trial to make out the unloading/reloading and collusion case, and produced certain registers and documents (which the trial court found to be forged).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hem Chiand v. Pearey Lal, AIR 1942 P.C. 64 It is irregular to allow parties to adduce evidence on points that arise only from evidence and were not raised in the pleadings or issues; such evidence should not be allowed without amending pleadings and framing necessary issues. The court relied on this authority to hold that the defendant should not have been allowed to adduce evidence of unloading/reloading at Chapra where that case was contrary to the written statement; such evidence must be discarded.
Jaigobind Misir v. Nagesar Prasad, AIR 1953 Pat 326 Where a particular claim or case has not been made in the defence, evidence regarding it should not be admitted; no amount of evidence can substitute for a pleaded case. The court cited this Bench decision to support exclusion of evidence relied upon by the defendant that was not pleaded in its written statement and was contrary to its pleaded case.
Siddik Mohamed Shah v. Mt. Saran, AIR 1930 P.C. 57 Where a plea or claim is never made in the defence presented, evidence on that unpleaded plea cannot be considered. The court used this authority to reinforce the rule that evidence adduced for a case never pleaded by the defendant should not be looked into in deciding the case, and thus such evidence was to be discarded.

Court's Reasoning and Analysis

The court proceeded in two main strands of analysis: (A) procedural propriety of evidence adduced by the defendant, and (B) the factual question of whether overcarriage resulted from railway negligence or plaintiff collusion.

A. Procedural propriety: The defendant's written statement pleaded that the plaintiff had managed not to get the tins unloaded at Chapra and they went to Bhatpar Rani. At trial the defendant produced evidence to the contrary — that the tins had been unloaded at Chapra and were later reloaded in collusion. Relying on authorities (Hem Chiand v. Pearey Lal; Jaigobind Misir v. Nagesar Prasad; Siddik Mohamed Shah v. Mt. Saran), the court held that it was irregular to allow the defendant to adduce evidence on a case not raised in pleadings and contrary to what was asserted in the written statement. Consequently, evidence as to unloading/reloading at Chapra that was inconsistent with the pleaded case had to be discarded.

B. Factual determination of cause of overcarriage: After excluding or discounting the unpleaded evidence, the court examined the remaining evidence as to whether the consignments were overcarried because of railway negligence or through collusion between the plaintiff and railway employees. The Subordinate Judge had found collusion and accepted certain documents and registers produced by the defendant; this court found those findings to be based on "surmises and conjectures" and observed that evidence adduced by the defendant was unreliable, fabricated, and in part forged (the court specifically described certain exhibits as forged). The appellate court concluded that the finding of collusion was unsupported by the record and was "absolutely wrong."

On the issue of the permit, the court noted the defence that rebooking was not possible because the plaintiff failed to obtain a permit for transporting butter from Uttar Pradesh to Bihar. The court rejected the contention that it was the plaintiff's duty to obtain such a permit: if the consignments were overcarried due to railway staff negligence, the Railway should have taken steps (including procuring a permit or otherwise rebooking) and could not escape liability by relying on the plaintiff's failure to procure a permit.

Damages and interest: The court accepted the Subordinate Judge's finding on the basic price of the butter (Rs. 4003/2/6) and did not disturb it. On profit, the Subordinate Judge awarded profit at 10% (not the 20% claimed by plaintiff); that reduction was not seriously contested and was upheld, resulting in Rs. 400/5/- for profit. General damages of Rs. 1500/- were disallowed and the court agreed no amount should be awarded for that claim. The plaintiff's claimed expenses for taking steps to obtain delivery (Rs.400/- with a memorandum of expenditure as Exhibit 6) were reduced to Rs. 200/-. Pre-suit interest was disallowed (counsel for appellant conceded no entitlement absent contract). The court awarded interest at 6% per annum from the date of institution of the suit until decree and future interest at 6% per annum from decree until realization.

The appellate court therefore reversed the Subordinate Judge's primary finding of collusion, held the railway liable for the overcarriage and spoilage, and adjusted the monetary reliefs accordingly.

Additional judicial comment (Naitayan, J., concurring): The concurring judgment condemned the gross misconduct of certain railway employees, described the behaviour as dishonest and disgraceful, observed forgery and perjured/fabricated evidence produced by railway staff, and stated that steps ought to be taken to bring such employees to account. This commentary underscores the court's view of the unreliability and mala fide nature of the defendant's defence in this case.

Holding and Implications

APPEAL PARTLY ALLOWED

Holding (direct relief ordered):

  • The appellate court overturned the Subordinate Judge's finding of collusion and held that the consignments were overcarried to Bhatpar Rani due to negligence of the railway staff; the defendant (O.T. Railway) is liable to the plaintiff.
  • The plaintiff is entitled to Rs. 4,603/7/6 representing the price of the butter, profit (at 10%) and the reduced expenses for pursuing delivery (Rs. 200), with interest at 6% per annum from the date of institution of the suit to the date of the decree, and future interest at 6% per annum from the date of the decree until realization.
  • The claim for general damages of Rs. 1,500/- was rejected; the claim for pre-suit interest was disallowed.
  • Costs were awarded proportionately against the defendant throughout, as indicated in the judgment.

Implications:

  • Direct consequence is a partial success for the plaintiff and an obligation on the Railway to pay the decretal amount with interest and costs in accordance with the court's computation.
  • The court reaffirmed the procedural principle that a party cannot be permitted to rely at trial on a case not pleaded in its written statement and that evidence on such an unpleaded case must be excluded; the decision applied existing authorities rather than creating a new legal principle.
  • The opinion contains strong judicial censure of alleged misconduct by railway employees and an exhortation that steps be taken to hold them accountable; however, no specific disciplinary measures are ordered in the text of the decree itself.
  • No novel legal precedent was created by this judgment; the court applied and followed existing authorities to exclude unpleaded evidence and to determine liability and damages on the facts before it.

Disposition: Appeal partly allowed. Judgment and decree of the court below set aside to the extent indicated; costs awarded against the defendant in proportion to the result.

    Rajendra Prasad Singh v. Governor-General In Council And Another

    Choudhary, J.:— This is a plaintiff's appeal which arises out of.

    2. Admittedly, on 20-2-1944, the plaintiff purchased and booked 75 tins of butter weighing 37½ maunds from Kamtaul station (O.T Railway) for Chapra Station (O.T Railway) per railway receipts Nos. 286503 and 284505, and the said consignments reached Chapra Station on 21-2-1944, by 143 up parcel express train at 7.5 a.m The case of the plaintiff is that the butter was to be delivered to the plaintiff at Chapra and he had to supply it to Mr. G.P Saraf, military supplier at Chapra, on 21-2-1944. The plaintiff endorsed the aforesaid railway receipts when the said consignments reached Chapra on 21-2-1944, and handed them over to the station Master. The consignments, however, owing to culpable negligence and misconduct of the railway servants, were not unloaded at Chapra and were carried over to Bhatpar Rani Station (O.T Railway) where they were unloaded. Attempts were made on behalf of the plaintiff to have the consignments rebooked for Chapra so as to be delivered to him at that place, but notwithstanding all efforts they could not be delivered to the plaintiff. The butter ultimately deteriorated and was spoiled. The plaintiff, therefore, instituted the suit for recovery of Rs. 4003/2/6 as being the price of the butter, Rs. 800/10/- as profit at 20 per cent, which would have been made in case the consignments had been delivered to him in time, Rs. 245/12/- as interest at 12 per cent, per annum from 21-2-1944, to 25-7-1944, Rs. 1500/- as general damages and Rs. 400/- by way of loss suffered by him on account of taking steps for delivery of the consignments. The total claim that was made amounted to Rs. 6950/8/6.

    3. Defendant No. 1 is the Central Government of India, Governor-General in Council, and defendant No. 2 is the O.T Railway through General-Manager, O.T Railway, Gorakhpur, district Gorakhpur. The suit was contested only by defendant No. 2 who will be referred to hereinafter as the defendant. The defendant did not deny that the butter was to be supplied by the plaintiff to Mr. G.P Saraf at Chapra. The suit was, however, contested on the ground that the consignments were not carried over to Bhatpar Rani due to the negligence of the railway staff. The defence as raised was that the plaintiff with dishonest motive and for reasons best known to him, in spite of having signed in the railway receipts and the register, managed not to get the tins unloaded at Chapra Station and allowed the same to go up to Bhatpar Rani where they had to be unloaded, and the Station Master of Bhatpar Rani suspected some foul play by the plaintiff as he found the tins near the end of the eastern platform after the departure of 143 up, and from an enquiry from the plaintiff he was informed that the tins had been brought for booking to Gorakhpur.

    4. It is alleged that, after having suspected the statement of the plaintiff, the Station Master of Bhatpar Rani reported the matter to the Sub-Inspector of police at Khampur, who ordered him to detain the tins until a thorough inquiry was made into the matter. The defence has raised a further plea that on 7-3-1944, the Station Master ??? Manager, O.T Railway, to send the tins to Chapra booked under prepaid way bill or invoice as the owner desired, no wharfage being charged, but in spite of the said order having been passed and the plaintiff having been instructed to take delivery accordingly, refused to do so, whereupon on 24-3-1944, the Station Master of Bhatpar Rani had to report to the Traffic Manager that the owner refused to pay the railway freight and also to produce the Magistrate's permit for booking the tins, which was quite essential, there being a ban on the transport of butter outside Gorakhpur district.

    5. It is also said that in spite of repeated askings the plaintiff did not produce the permit and show his readiness to have the tins booked on payment of all the railway charges due, and, therefore, the consignments remained undelivered and, at last, was taken possession of by the Sub-Inspector of police, Chapra under the Defence of India Rules.

    6. At the trial the defendant adduced evidence to show that the tins of butter were unloaded at Chapra railway station and, thereafter, the plaintiff, by bringing some of the railway staff in collusion, managed to reload them in the said parcel train and got them unloaded at Bhatpur Rani Station. In view of the definite plea that the defendant had taken in the written statement that the plaintiff managed not to get the tins unloaded at Chapra station and allowed the same to go to Bhatpur Rani Station, the learned Subordinate Judge should not have permitted the defendant to adduce evidence to make out a case not pleaded in the written statement and which was contrary to what was said in that written state-men. In — ‘Hem Cliand v. Pearey Lal, AIR 1942 PC 64 (A) their Lordships of the Judicial Committee held that the procedure in allowing the parties to adduce evidence on points which arose on the evidence led by the parties but were not raised in the pleadings or issues is irregular and should not be allowed without amending the pleadings and raising the necessary issues.

    7. The point has been thoroughly discussed in a Bench decision of this Court in — ‘Jaigobind Misir v. Nagesar Prasad’, AIR 1953 Pat 326 (B), to which brother Narayan, J., was a party, wherein it has been held that when a particular claim has not been made in the defence no amount of evidence could be allowed to be adduced with regard to it. In an earlier decision their Lordships of the Judicial Committee in — ‘Siddik Mohamed Shah v. Mt. Saran’, AIR 1930 PC 57 (1) (C) held that where a claim has been never made in the defence presented, no amount of evidence can be looked into upon a plea which was never put forward. On the authorities referred to above, it is clear that the learned Subordinate Judge erred in permitting the defendant to adduce evidence, in proof of a case which was never pleaded in the written statement but, on the other hand was contrary to the case made out therein, and even if such evidence was adduced, it should not have been looked into while deciding the case. The evidence on this point, therefore, has to be discarded altogether from consideration.

    8. The learned Subordinate Judge found that ??? the consignments at Chapra station and reloading the same has not been established by the defendant and the evidence adduced to prove the same was unreliable and collusive entries were made in certain registers to show the unloading and delivery of the tins at Chapra. He has also held that exhibits E, E(5) and F which were produced in support of the contention raised by the defendant that the consignments were not over carried due to negligence or the railway staff were forged documents, but nevertheless he came to the final conclusion that the consignments in question were carried from Chapra to Bhatpar Rani in an unbooked condition as a result of collusion between the plaintiff and some railway employees and that it was not on account of the negligence or misconduct of the defendant's servants that the consignments in question were not actually delivered to the plaintiff at Chapra, and on this finding he dismissed the suit of the plaintiff who has, therefore, preferred this appeal.

    9. The first point that has been strenuously argued by the learned Counsel appearing for the defendant-respondent is that the consignments were unloaded and delivered to the plaintiff at Chapra and they were then reloaded under some collusion. As already observed, the case of unloading and reloading at Chapra as made out in the evidence is against the pleading raised in the written statement, according to which, the consignments were never unloaded at Chapra but the plaintiff managed not to get them unloaded at Chapra and allowed the same to go up to Bhatpur Rani. The defendant should not have been allowed, as already observed, to adduce evidence on this point and the evidence of the witnesses regarding unloading and reloading at Chapra has to be discarded. Even if we take into consideration the evidence adduced on this point, it, in my opinion, is not satisfactory to prove the case so made out.

    (His Lordship discussed the evidence and proceeded:)

    10. The other question that has to be considered is whether the consignments were overcarried and unloaded at Bhatpar Rani railway station due to the negligence of the Railway staff or due to the collusion of the plaintiff with the men of the railway staff.

    (His Lordship discussed the evidence and after observing that the evidence on the side of the defendant was unreliable and frabricated proceeded:)

    11. It has also been argued that the consignments could not be rebooked for Chapra railway station on account of the failure of the plaintiff to obtain a permit for booking them from Bhatpar Rani which is in the province of Uttar Pradesh to Chapra which is in Bihar, inasmuch as butter could not be booked from Uttar Pradesh to Bihar without a permit. It was not, however, the business of the plaintiff to obtain a permit. The consignments were overcarried due to the negligence of the staff of the railway administration and it was for defendant to have taken proper steps either by procuring a permit or in any other way that could be possible to rebook the consignments to Chapra railway station to be delivered ??? to do that cannot escape its liability on the ground that the plaintiff failed to procure the permit.

    12. The finding of the learned Subordinate Judge that the consignments in question were carried from Chapra to Bhatpar Rani in an unbooked condition as a result of collusion between the plaintiff and some railway employees is based on surmises and conjectures, and, is not, in my opinion, supported by any evidence on the record. In my opinion, his finding on this point is absolutely wrong, and the consignment in question was overcarried to Bhatpar Rani due to the negligence of the railway staff. It is, therefore, clear that; the defendant is liable to pay damages to the plaintiff.

    13. The plaintiff has claimed Rs. 4003/2/6 as price of the butter, and the learned Subordinate Judge has rightly held that it was really purchased for that amount. The learned Counsel appearing for the defendant-respondent has not challenged this finding. With regard to the claim of profit, the learned Subordinate Judge has held that in case of success the plaintiff would have been entitled to it at a rate of 10 per cent, and not at the rate of 20 per cent, as claimed by him. This finding also has not been seriously challenged by the learned Counsel for the respondent, and, therefore, the plaintiff is entitled to Rs. 400/5/- by way of profit that he could have made if the consignments had been delivered to him in time. The plaintiff has claimed Rs. 1500/- as general damages. The learned Subordinate Judge has held that he could never be entitled to this amount for this item, and I quite agree with him. Nothing has been shown to us on the basis of which we could award any amount for this item.

    14. He has also claimed Rs. 400/- as loss suffered by him on account of taking steps for delivery of the consignments, and in support of his claim he has filed a memorandum of expenditure, exhibit 6. The learned Subordinate Judge has rightly held that in case of success the plaintiff could have been given Rs. 200/- on this account, and, in my opinion, he is entitled to get this amount of Rs. 200/- for this item. Interest has been claimed prior to the institution of the suit, but the learned Counsel appearing for the appellant has frankly conceded that he is not entitled to any interest prior to the institution of the suit, there being no contract for payment of interest. The plaintiff is, therefore, not entitled to the interest prior to the institution of the suit. He is, however, entitled to interest from the date of the institution of the suit at the rate of 6 per cent, per annum. The plaintiff is, therefore, entitled to a sum of Rs. 4603/7/6 on account of the price of the butter, profit that he could have made and the loss suffered by him in taking steps for delivery with interest at 6 per cent, per annum from the date of the suit till the date of the decree. He is also entitled to future interest at the rate of 6 per cent, per annum on the decretal amount from the date of the decree to the date of realization.

    15. In the result the appeal succeeds in part, the judgment and decree of the court below are against the Defendant To The Extent Indicated Above with Proportionate Costs Throughout.

    Naitayan, J.:— I agree. This is a singular instance bringing to light the gross misbehaviour of the employees of the Railway administration formerly known as O.T Railway and now as N.E Railway. A businessman was harassed in a crude & a disgraceful manner, and but for the care and circumspection shown by the Additional Sessions Judge who heard the appeal against his conviction the mischief of the Railway employees would have succeeded and their improper acts would not have come into prominence. The tins were intentionally overcarried, and when the plaintiff protested and moved higher authorities, documents were forged, and the employees invented and put forward absurd pleas for defending themselves. It is regrettable that the administration should have sanctioned the filing of a written statement containing absurd pleas, and if these Railway employees had no scruple in giving false evidence in this case, that is probably for the reason that the administration had undertaken their defence. In fact, however, there is no legitimate answer to the claims of plaintiff, and the perjured and the fabricated evidence which is forthcoming in this case has simply exposed the dishonest nature of the defence and the malpractices of these Railway employees. The matter cannot be allowed to rest here, and steps ought to be taken for bringing to book the Railway employees whose mischievous deeds have given rise to this litigation and had led to the prosecution of the plaintiff.

    V.R.B

    16. Appeal partly allowed.

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    Rajendra Prasad Singh v. Governor-General In Council And Another
    (Aug 31, 1954)