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  • Article 31 of the Indian Limitation Act
  • section 77 of the Indian Railways Act
  • Article 31 of the Limitation Act.4.
  • Article 30 of the Limitation Act
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Citation Codes
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citation codes
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  • Article 31 of the Indian Limitation Act
  • section 77 of the Indian Railways Act
  • Article 31 of the Limitation Act.4.
  • Article 30 of the Limitation Act
Smart Summary

Factual and Procedural Background

On 16-12-1947 the plaintiff consigned 37 bales of cotton piece-goods to the railway at Indore for carriage to Dhanbad under Risk Notes A and Z, to be delivered to the plaintiff. Out of the 37 bales, 35 bales were delivered to the plaintiff on 8-1-1948. On 20-1-1948, when open delivery was taken, one bale was found entirely missing and some articles from another bale were found to have been pilfered.

The plaintiff made a claim on the railway on 5-4-1948 for Rs. 658/8/6 for the price and incidental costs in respect of the missing and pilfered goods (exhibit 1). The railway replied on 24-7-1948 stating the matter was under special enquiry, and later on 11-2-1949 repudiated liability on the ground of running train robbery. The plaintiff instituted the present action on 20-7-1949 alleging misconduct by the Railway Administration.

The Railway denied misconduct, contended the loss was due to running train theft, and pleaded limitation. Both courts below found misconduct by the Railway Administration but held that the suit was governed by Article 31 of the Indian Limitation Act and barred by limitation, treating the starting point for limitation as either 8-1-1948 (part delivery) or 20-1-1948 (open delivery), and accordingly dismissed the suit.

Legal Issues Presented

  1. From which date should the period of limitation for the plaintiff's suit be computed — the date when the goods were (partially) delivered or when the railway finally repudiated the claim (i.e., whether limitation starts on the date the goods ought to have been delivered or on the date of the final refusal of the carrier)?
  2. Which provision of the Limitation Act applies to this case — Article 31 (action for non-delivery where carrier's conduct or communication affects the start of limitation) or Article 30 (when cause of action arises on the date loss actually occurred)?

Arguments of the Parties

Appellant's Arguments (Mr. A.C. Roy)

  • The period of limitation should be computed from 11-2-1949, the date on which the Railway Administration gave its final reply refusing to pay compensation.
  • Because the railway, in its 24-7-1948 reply, said the matter was under special enquiry, the plaintiff reasonably expected delivery or recovery of missing articles and therefore was not obliged to sue until the railway communicated the outcome of its enquiry.
  • Where the carrier holds out hope and conducts inquiries, the date of final refusal is the appropriate starting point for limitation under Article 31 of the Limitation Act.

Respondent's Arguments (Mr. P.K. Bose)

  • The starting point of limitation was 20-1-1948, when open delivery was taken and the missing/tampered items were discovered.
  • The plaintiff's letter of 5-4-1948 amounted to a claim under section 77 of the Indian Railways Act and the railway's 24-7-1948 reply merely indicated it was investigating that claim.
  • The appropriate provision is Article 30 of the Limitation Act (cause of action arising on the date the loss actually occurred), since the loss occurred on 20-1-1948.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mutsaddi Lal v. Governor‑General in Council, AIR 1952 All 897 (Full Bench) Where goods do not reach destination and the carrier, when approached, holds out hope and states the matter is under enquiry, the starting point of limitation under Article 31 is not necessarily the date goods ought to have been delivered; the phrase "when the goods ought to be delivered" can refer to the time when the carrier undertakes to deliver, informs the consignee of delivery timing, or communicates inability to deliver. The court distinguished this precedent because in the present case the greater part of the consignment was delivered and there was no clear correspondence holding out hope that the missing goods would be delivered.
Union of India v. Bansidhar Modi, AIR 1954 Pat 548 Where protracted correspondence and assurances from the carrier mislead the consignee into delaying suit, the consignee may be justified in waiting until the carrier makes it clear there is no intent to deliver. The court noted that the facts of that case involved prolonged correspondence and non-delivery of a major part of the consignment; it found the present case distinguishable on that basis.
N.W. Rly. Co. Ltd. v. Kameshwar Singh, AIR 1933 Pat 45 Where the defendant's conduct misleads the plaintiff into delaying suit, the defendant cannot later contend the suit was time-barred; the railway's attitude of ignoring claims can justify delay. The court cited this ratio (via approval in other decisions) to show circumstances where waiting to sue is justified, but concluded those circumstances were not present here.
Gajanand Rajgoria v. Union of India, AIR 1955 Pat 182 When a major part of a consignment is delivered on a given date, pilfered or removed portions could not be delivered subsequently; consequently the date when the goods ought to have been delivered is the date the goods (major portion) were delivered. The court relied on this decision to hold that in the present case the relevant date for computing limitation is the date when the major part of the consignment was delivered (8-1-1948) or when open delivery was taken (20-1-1948).
Gopi Ram Gouri Shankar v. G.I.P. Railway Co., AIR 1927 Pat 335 Where a great part of a consignment has been delivered on a certain day, ordinarily the time when the consignment as a whole ought to have been delivered is manifestly the day when the greater part arrived; there is generally no need for further evidence on when the balance ought to have been delivered. The court treated this decision as closely on point and applied its reasoning to conclude that the date when the major part was delivered should fix the start of limitation.
G.I.P. Ry. Co. v. Ganpat Rai, ILR 33 All 544 In a case of total loss, the court may fix, on evidence, the period within which goods ought to have been delivered (example: within a fortnight or at most three weeks). Referenced as a comparative authority illustrating how courts determine the date goods ought to have been delivered; used to support the reasoning that major-part delivery dates can fix the relevant date.

Court's Reasoning and Analysis

The court identified the central dispute as one of limitation: whether limitation should start on the date when the goods ought to have been delivered (as found by the courts below: 8-1-1948 or 20-1-1948) or from the date of the railway's final repudiation (11-2-1949) as contended by the appellant.

The court examined the authorities relied upon by the appellant and analysed how their facts differed from the present case. The Full Bench decision in Mutsaddi Lal (and related decisions such as Union of India v. Bansidhar Modi) involved situations in which the entire consignment had not arrived and correspondence from the railway held out the prospect of delivery or reasonably misled the consignee into expecting delivery; in those circumstances the starting point for limitation could be postponed until the carrier made its refusal clear.

In contrast, the court found the present case materially different because a large majority of the consignment (35 of 37 bales) had been delivered on 8-1-1948, and on 20-1-1948, upon open delivery, one bale was found missing and another tampered. The railway only stated it was making enquiries; there was no evidence that the railway held out a clear hope that the missing goods would be delivered or that the plaintiff was misled into delaying suit.

The court applied the principle from Gajanand Rajgoria and Gopi Ram Gouri Shankar that where the greater part of a consignment has been delivered on a particular date, the time when the consignment as a whole ought to have been delivered is ordinarily that date. Consequently, the court concluded that the appropriate starting point for limitation was either the date when the major part was delivered (8-1-1948) or the date of open delivery (20-1-1948).

Because the plaintiff's suit was instituted on 20-7-1949, it was time-barred when computed from either of the foregoing starting points. The court therefore did not find it necessary to decide the separate question raised by the respondent about the sufficiency of the plaintiff's evidence on the merits of the claim.

Holding and Implications

APPEAL DISMISSED.

Holding: The court held that the suit was barred by limitation. The period of limitation must be computed from the date when the goods ought to have been delivered — in this case either 8-1-1948 (the date the major portion was delivered) or 20-1-1948 (the date of open delivery). Calculated from either date, the action commenced on 20-7-1949 was beyond the applicable limitation period.

Implications:

  • The plaintiff's action is dismissed as time-barred; the court awarded costs in respect of the appeal ("dismissed with costs").
  • The court did not decide the substantive merits (i.e., whether the Railway was liable on the facts) because limitation was dispositive.
  • The decision applies established principles from prior authorities regarding when the period of limitation begins in consignment/non-delivery cases—particularly where a major part of the consignment has been delivered, the date of such delivery ordinarily fixes the start of limitation. The court treated the present case as consistent with existing precedent rather than as establishing a new precedent.

Note: This summary is based exclusively on the text of the provided opinion and does not add information beyond that opinion.

    Shamburam Agarwala v. Union Of India Representing The Railway Administration .

    1. This is a Second Appeal by the plaintiff arising out of a suit for damages for loss of consignment, and the question raised in this appeal is one of limitation. The facts, so far as they are relevant for the present appeal, are as follows:

    On 16-12-47, 37 bales of cotton piece-goods were consigned to the railway at Indore for carriage to Dhanbad under Risk Notes A and Z. The goods were to be delivered to the plaintiff. Out of 37 bales, 35 bales were delivered to the plaintiff on 8-1-48. As regards the remaining bales the plaintiffs sought and obtained open delivery on 20-1-48, when it was discovered that one bale was entirely missing and some articles cut of the other bale had been pilfered. On 5-4-48 the plaintiff made a claim to the railway in respect of Rs. 658/8/6 on account of the price and incidental costs in consequence of the loss of one bale and some articles out of the other bale. This is exhibit 1. On 24-7-48 the Railway Administration sent to the plaintiff a reply, exhibit 1(c), stating that the matter was under its special enquiry. Finally, on 11-2-49 the railway sent a reply repudiating liability on the ground that the loss was occasioned by running train robbery. The plaintiff then commenced the present action on 20-7-49. He alleged that this loss was due to misconduct on the part of the Railway Administration. The railway denied liability to pay damages on the ground, first, that there was no misconduct on the part of the Railway Administration or its officers, and, second that it was a case of running train theft. It pleaded also limitation.

    2. Both the Courts concurrently held that the loss was due to misconduct on the part of the Railway Administration. They, however, found that the suit was governed by Article 31 of the Indian Limitation Act and barred by limitation. It will appear that the suit was brought within one year from 5-4-48 when the plaintiff made a demand upon the railway for payment of Rs. 658/8/6 as also from 11-2-49 when the railway finally refused to entertain the claim of the plaintiff. The suit was, however, out of time if the period is computed from either 8-1-48 when part-delivery was made or from 20-1-48 when open delivery was given and one bail was found missing and the other bale was found tampered. In the opinion of the Courts below the starting point of limitation was either 8-1-48 or 20-1-48, and in either case the suit was barred by time. Accordingly, they dismissed the suit.

    3. Mr. A.C Roy appearing for the appellant contended that in the circumstances of this case the period of limitation must be computed from 11-2-49 when the Railway Administrate on gave the final reply refusing to pay the plaintiff compensation for the loss of the consignment. His submission was that when the plaintiff sent the letter dated 5-4-48 to the Railway Administration, the latter wrote in reply that the matter was under special enquiry, and therefore until the result of that enquiry was communicated to the plaintiff, it was not necessary for the plaintiff to bring the suit, as he during that record all along expected that delivery or the missing articles would be made to him. He submitted further that in such a case the date of the final refusal on the part of the railway must be taken to be the date when the goods will be deemed not to have been delivered within the meaning of Article 31 of the Limitation Act.

    4. Mr. P.K Bose appearing for the respondent, however, contended that the starling print of imitation was 20-1-48, when the plaintiff was given open delivery. He further submitted that, strictly speaking, there was no correspondence between, the plaintiff and the Railway Administration as to whether or not the goods would be delivered. The letter that the plaintiff addressed to the Railway Administration on 5-4-48 was in effect and essence a notice of the claim under section 77 of the Indian Railways Act and what the Railway purported to say in its reply of date 24-7-48 was that it was investigating the claim the plaintiff had made in his letter. It was this claim which was eventually refused by the railway on 11-2-49. His submission was that it was a case if loss of the consignment and the appropriate Article applicable to the case was Article 30 of the Limitation Act under which the cause of action must be deemed to have been arisen on the date the loss actually occurred, that is, on 20-1-48.

    5. After hearing the arguments, I am unable to accept the contention raised on behalf of the appellant. In support of his contention, Mr. Roy relied upon the decisions in the cases of Mutsaddi Lal v. Governor-General in Council, AIR 1952 All 897 (FB) (A) and Union of Inda v. Bansidhar Modi, AIR 1954 Pat 548 (B). In the former case, the position was entirely different. There the consignment consisted only one bale of cloth and the entire consignment was not delivered to the plaintiff, and it appears that correspondence ensued between the Railway Administration and the plaintiff in which the Railway Administration held out hope to the plaintiff that the goods would be delivered and the matter was being enquired into.

    6. In these circumstances, the Full Bench of the Allahabad High Court has held that if the goods do not reach the destination on the date when in the normal course of affairs they are expected to reach there and the Railway Administration on being approached for delivery holds out hope to the plaintiff that the goods would be delivered and that the matter was being enquired into, then the starting point of limitation under Article 31 cannot be said to be the date on which the goods: should have reached the destination in the normal course. Their Lordships have further laid down that the phrase ‘when the goods ought to be delivered’ means the point of time at which the carrier undertakes to deliver the goods or the date when the carrier informs the consignee that it would be delivered or when the carrier communicates to the consignee its inability to deliver the goods on a reasonable date that may be fixed on a consideration of events subsequent to the handing over of the consignment to the carrier for carriage.

    7. No such case arises in the present case. As a matter of fact, we are not aware of the nature of the correspondence that passed between the plaintiff and the Railway Administration in that case. But, from the statement of facts it appears that the correspondence purported to hold out hopes to the plaintiff that the goods would be delivered. In the present case, the entire consignment was not lost. On the contrary, greater portion of the consignment, namely, 35 bales out of 37 bales, were delivered on the first day, that is, on 8-1-48, and of the remaining two bales, one was found to be missing on 20-1-48 and some articles were found to have been removed from the other bale. Apart from this what the Railway Administration said was that it was making enquiry.

    8. There is no quest on of giving the plaintiff a hope that the missing goods would be delivered to the plaintiff. As a matter of fact, there was ??? no reason for the plaintiff to believe that at least the few articles that had been removed from one of the bales would be delivered to the plaintiff. In the case of (AIR 1954 Pat 548) (B), it appears that out of a consignment of four bales of cloth only one bale was delivered and the remaining three bales were not delivered, and this led to a protracted correspondence between the plaintiff and the railway.

    9. In that case two railways were involved, namely, the then B.N Railway and the then E.I Railway. In the circumstances of that case, their Lordships held that the plaintiff was justified in waiting to bring the suit until the defendant made it clear that they had no intent on to deliver the goods. They quoted with approval the following observations of their Lordships of the Patna High Court in the case of B and N.W Rly. Co. Ltd. v. Kameshwar Singh, AIR 1933 Pat 45 (C):

    “The defendants by a deliberate process of ignoring the plaintiff's repeated quests for attention to his claim misled him into delaying his suit and its not open to them now to contend that the suit has been brought too late. In my opinion, the attitude of the railway company has throughout been lacking in candour and their defence to this suit even in its most technical aspects has no merit”.

    10. In short, those observations applied to the case under consideration. In my opinion, the present case is clearly distinguishable. Here, it is difficult to say on the correspondence that the plaintiff was misled into delaying the suit. As a matter of fact, when one bale was found to be partially tampered and the other bale was found lost, and when the major portion of the consignment, namely, 35 bales out of 37 bales had been, delivered, there was no reasonable basis for the plaintiff to think that the missing articles would be delivered to him by the railway.

    11. This case, in my opinion, is covered by the decision of this Court in Gajanand Rajgoria v. Union of India, (S) AIR 1955 Pat 182 (D). It will be seen that Das, J. who delivered the judgment of the Court in this case was also a party to the decision in the case of (AIR 1954 Pat 548) (B). In the case of Gajanand Rajgoria a consignment of 200 bags of sugar was booked from a station called Bagaha on the railway section then known as the O.T Railway for another station called Katrasgarh on the E.I Railway section on 23-3-50. At the time of delivery 8 bags of sugar were found out and damaged. Those 8 bags Were reweighed and there was found shortage of 11 maunds and 1 seer of sugar. In these circumstances their Lordships observed as follows:

    “It should be obvious that in a case of this kind, the entire quantity of sugar should have been delivered on the same day, namely 5-4-1950, and the sugar which had been removed or pilfered firm some of the bags could not be delivered on a subsequent date. Therefore, having regard to all the circumstances, the date when the goods ought to be delivered should, in the present case, be 5-4-1950”.

    12. In the present case also the date when the goods were delivered was 8-1-48 when 35 bales out of 37 bales were delivered or 20-1-48 when open delivery was taken. Mr. Roy attempted to distinguish this case on the ground that in that case there was no loss or non-delivery of one entire or bale, but that some sugar had been removed from 8 bags of sugar.

    13. In the present case, one entire bale had been lost and some articles had been removed from the other bale. Apparently, that was so. Even then, so far as the removal of a few articles from one of the bales is concerned, there can be no doubt that the date when the goods were to be delivered must be the date when open delivery was taken, that is, 20-1-48. But considered as a whole, I do not find that this case should be treated differently. At any rate, there is a Division Bench decision in Gopi Ram Gouri Shankar…Plaintiff ; v. G.I.P Ry. Co.…Defendant ., AIR 1927 Pat 335 (E) which is on all fours with the present case. In that case out of 6 bales of cloth 4 bales were delivered, and the other 2 bales were not found. In these circumstances, their Lordships held as follows:

    “In a suit for non-delivery, where no portion of the consignment has been delivered, it is sometimes necessary to take evidence on the question of when the consignment ought to have been delivered, which must in any case be regarded as a question of fact. The case of G.I.P Ry. Co. v. Ganpat Rai, ILR 33 All 544 (E), was a case of this kind, where the consignment, was totally lost; there the learned Chief Justice of the Allahabad High Court and Mr. Justice Banerjee summarily decided that goods despatched from Bombay ought to have been delivered at Ghazipur within a fortnight or at the utmost within three weeks. It appeals to us quite unreasonable to hold where, the greater part of a consignment despatched from Bombay has been delivered at Gaya sixteen days later, that the rent of the consignment ought to have travelled at a pace slower than that of a bullock-cart. We have given our best consideration to this question; and we are of opinion that where a great part of a consignment has been delivered on a certain day, there is ordinarily no necessity to enter into evidence on the question of when the balance of the consignment ought to have been delivered because the time when the consignment as a whole ought to have been delivered is manifestly the time when the greater part of the consignment arrived at its destination”.

    14. In the circumstances, it is difficult to hold that the missing articles could have been delivered at a subsequent date, nor do I find that there was any such expectation in the mind of the plaintiff. The plaintiff does not say that was expecting deli-very of the missing articles horn the railway. On the contrary, he took them as lost and made a final claim upon the railway for recovery of the price of the missing articles together with incidental costs. I do not find any substantial ground for distinguishing that case from the present one. Relying upon these decisions, I think, the date on which the goods ought to have been delivered must be taken to be the date when the major part of the consignment was delivered or the date when open delivery was taken by the plaintiff, that is to-say, either on 8-1-48 or on 20-1-48, and when the period of limitation is computed from either of these dates, the suit is clearly beyond time, and it was rightly decided by tile Courts below that the suit was barred by time.

    15. Mr. Bose contended that there was absolutely no evidence to establish the claim laid by the plaintiff in the present case. It appears that this question has not been determined in the courts below, and in the view which I take of the case, namely, limitation, I do not consider it necessary to make any pronouncement upon this question.. There is, in my opinion, no substance in this appeal, and it is accordingly dismissed with costs.

    H.G.P

    16. Appeal dismissed.

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    Shamburam Agarwala v. Union Of India Representing The Railway Administration .
    (Apr 25, 1957)