Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • section 77 of the Indian Railways Act and under Section 80 of the CPC,
  • plaintiff.9. Section 47(1)(f) of the Indian Railways Act
  • Rule 2 of rules
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • section 77 of the Indian Railways Act and under Section 80 of the CPC,
  • plaintiff.9. Section 47(1)(f) of the Indian Railways Act
  • Rule 2 of rules
Smart Summary

Factual and Procedural Background

On 1 September 1948 one hundred bags of sugar were consigned to the plaintiff at Gaya. The consignment arrived at Gaya on 11 September 1948 and was unloaded by railway staff that day. On 12 September 1948 the plaintiff's agent came to take delivery, paid freight and obtained a gate pass, but because the gate pass was issued late in the evening the bags could not be removed that day and remained in the custody of railway employees; wharfage was charged and paid by the plaintiff's agent.

During the night between 12 and 13 September 1948 rain damaged some bags. On 13 September the plaintiff's agent discovered forty bags damaged; the plaintiff accepted delivery of sixty bags and refused delivery of the forty damaged bags, which remained with the railway administration. After correspondence and service of notices under section 77 of the Indian Railways Act and section 80 of the Civil Procedure Code, the plaintiff sued the Union of India (owner of the East Indian Railway) for Rs. 4,637/8/- as damages for the forty damaged bags.

The defendant contested liability on several grounds, asserting that the goods had been kept under proper cover, that railway employees were not negligent, and that the plaintiff should have taken delivery of the damaged bags. On 11 June 1949 the railway sold the forty damaged bags at auction for Rs. 2,070; the railway claimed wharfage (variously stated by the parties), and pleaded that the plaintiff could get the sale price after deduction of wharfage.

Both lower courts found railway negligence and railway liability for damages, and held the railway entitled to wharfage for the period from 13 September 1948 to 11 April 1949 (the wharfage amount assessed was Rs. 1,433/14/6). The trial court computed a decree for Rs. 818/1/6 after deducting wharfage from the auction price and adding certain items. The lower appellate court awarded the plaintiff the price of the sugar at Rs. 28 per maund (111 maunds 10 seers ≈ Rs. 3,115), deducted wharfage and gave a decree for Rs. 1,681/1/6. The plaintiff appealed to this Court; this Court dismissed the appeal with costs.

Legal Issues Presented

  1. Whether the railway authorities were entitled to charge wharfage for keeping the damaged goods when the damage had been caused by railway negligence and the consignee (plaintiff) refused to take delivery.
  2. Whether the lower appellate court should have included in its decree amounts decreed by the trial court (Rs. 116 excess wharfage recovered by the railway and Rs. 66 as interest pendent lite) and whether the appellant could raise that point in this Court.
  3. Whether the price of the sugar should have been assessed at Rs. 38 per maund (as claimed by the plaintiff) rather than at the control rate of Rs. 28 per maund used by the lower appellate court.
  4. Whether the sale of the forty bags without weighment (sold bagwise at auction) was invalid and whether the railway had a right to sell in that manner.

Arguments of the Parties

Appellant's Arguments

  • The damage to the bags of sugar was caused by negligence of the railway administration; because of that negligence the plaintiff was not bound to take delivery of the damaged bags, and therefore the railway could not legally charge wharfage for retaining them.
  • The price of the sugar should be assessed at Rs. 38 per maund (as claimed by the plaintiff) rather than at Rs. 28 per maund.
  • The forty bags were sold without weighment and the railway had no right to sell without having the sugar weighed.
  • The lower appellate court erred in not including Rs. 116 (excess wharfage recovered by the railway) and Rs. 66 (interest pendent lite) awarded by the trial court.

Respondent's Arguments

  • The plaintiff should have taken delivery of the goods even though they were damaged, obtaining a certificate of the amount of damage; failing to take delivery made the plaintiff responsible for wharfage.
  • The goods had been kept under proper cover and railway employees were not negligent.
  • The railway was willing to pay the sale proceeds after deducting lawful wharfage; the plaintiff could obtain the balance but could not avoid wharfage liability.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Great Indian Peninsula Railway (Defendant) v. Radhe Mal, Manni Lal (Plaintiff), AIR 1925 All. 656 Cited by appellant as authority relevant to wharfage/consignee's entitlement. The Court held this Allahabad decision to be irrelevant on the question of liability for wharfage because, as stated in this opinion, the liability for wharfage was not under consideration in those Allahabad cases.
B. and N.W. Rly. v. Matru Ram, 25 All LJ 159 : AIR 1927 All 220 Cited by appellant in support of contention regarding delivery/liability. The Court treated this Allahabad decision as not relevant to the wharfage issue because those cases did not consider liability for wharfage.
E.I. Rly. Co. v. Bhagwan Das, ILR 1 Pat 15 : AIR 1922 Pat 390 Illustrates circumstances where railway was not entitled to demurrage/wharfage where delay was caused by railway's own investigation and the consignee was willing to take delivery. The Court found the case inapplicable: there the consignee was willing to take delivery but the railway delayed investigation; in the present case the refusal to take delivery was by the plaintiff, so the precedent did not apply.
Suraj Mal Marwari v. Agent B.N. Ry. Co., 58 Ind Cas 200 : AIR 1920 Pat 493 Supports principle that a consignee who unjustifiably refuses to take delivery can be charged demurrage/wharfage until the goods are sold for preservation. The Court relied on this authority to support the view that the railway was entitled to charge wharfage when the plaintiff unjustifiably refused delivery.
Badridas Firm of Purulia v. Governor General for India in Council, AIR 1947 Pat 118 Holds that the railway administration was justified in charging wharfage where the consignee refused delivery (for example, when open delivery was refused). The Court cited this decision to support the proposition that wharfage could be charged for the period the goods remained in the railway goods shed due to consignee's refusal to take delivery.
Hariram Kedia v. Dominion of India, S.A. No. I of 1949 (disposed 24 Sep 1951) (unreported) Unreported decision supporting the view that wharfage is chargeable when consignee refuses delivery. The Court noted the decision as supporting the same view that the railway could charge wharfage where retention of goods resulted from the consignee's refusal to take delivery.

Court's Reasoning and Analysis

The Court first assessed the authorities relied upon by the appellant and concluded that the two Allahabad High Court decisions relied on did not address liability for wharfage and therefore had no relevance to the specific wharfage question in this case. The Court examined ILR 1 Pat 15 (E.I. Rly. Co. v. Bhagwan Das) and found it likewise inapplicable because in that case the consignee was willing to take delivery but the railway itself caused retention by lengthy investigation; the Court contrasted those facts with the present case where retention resulted from the plaintiff's refusal.

The Court then turned to statutory and regulatory provisions. It noted section 47(1)(f) of the Indian Railways Act empowering the framing of general rules for warehousing/retention of goods and cited Rule 2 of the warehousing/retention rules:

"A consignee must take delivery of the goods forming part of a consignment whenever they are available for delivery notwithstanding that the remaining goods are short or damaged ... and if the consignee does not take delivery ... they will be subject to wharfage charges if not removed within the time allowed for removal."

Applying this rule to the facts, the Court observed that the railway authorities were prepared to deliver all bags with a certificate of damage assessed both by the railway claims inspector and as claimed by the plaintiff. The plaintiff refused to take delivery. Because the retention of the forty bags in railway custody resulted from the plaintiff's refusal to accept the goods, the Court agreed with the lower appellate court that the plaintiff was liable to pay wharfage. The Court found support for this position in precedents (Suraj Mal Marwari; Badridas; and an unreported Hariram Kedia).

On the point about the trial court's award of Rs. 116 (excess wharfage) and Rs. 66 (interest pendent lite), the Court noted procedural facts: a ground seeking pendent lite interest had been taken but later deleted; and no ground was taken in the grounds of appeal in this Court to assert entitlement to add those items. Therefore, the Court held the appellant could not raise that point in this appeal.

Regarding the price per maund, the Court observed the control rate was Rs. 28 per maund, and the lower appellate court had used that rate; the plaintiff had admitted that rate and submitted no evidence of the market rate at the relevant time. Consequently, the Court declined to vary the appellate court's decree on that ground.

Finally, on the contention that the auction sale was invalid because it occurred without weighment, the Court noted that the sugar was sold bagwise with prior notice to the plaintiff and that no objection was taken by the plaintiff to such sale; hence that contention failed.

Holding and Implications

Holding: The appeal is DISMISSED and dismissed with costs.

Implications:

  • The decree of the lower appellate court stands (the Court dismissed the appeal, thereby upholding the result reached below).
  • The Court held that where the railway is prepared to deliver goods with a certificate of damage but the consignee refuses to take delivery, the consignee may be held liable for wharfage under the applicable rules framed under section 47(1)(f) of the Indian Railways Act (Rule 2 quoted in the opinion).
  • The Court refused to disturb the appellate court's assessment of price (Rs. 28 per maund) in the absence of evidence of a different market rate, and rejected the challenge to the sale conducted bagwise where no prior objection was raised.
  • No broader precedent was announced beyond the application of existing rules and cited authorities to the facts; the decision results in the direct effect described above on the parties (dismissal of the appellant's challenge and confirmation of the lower court's calculations and findings).

    Vishun Prasad Bhadani v. Union Of India

    1. This is an appeal by the plaintiff. The short facts are these: On the 1st of September 1948, one hundred bags of Sugar were consigned to the plaintiff at Gaya. The consignment arrived at Gaya on the 11th of September 1948 and it was unloaded by the railway staff on that date. On the 12th of September 1948, the agent of the plaintiff went to take delivery of the consignment and after paying freight, etc. obtained gate pass to take away the one hundred Bags of Sugar from the railway goods godown. Since, however, the gate pass was given late in the evening, the bags could not be removed from the railway goods godown on that date, and they remained in charge of the railway employees for which the railway charged wharfage from the plaintiffs agent, which was duly paid.

    2. It is alleged that the bags were kept in an open shed, and as unfortunately there was rainfall on the night between the 12th and the 13th of September 1948, some of the bags of sagar soaked with rain water and were damaged. On the next day, that is, on the 13th of September, 1948, when the agent of the plaintiff went to take delivery of the Sugar, he found that forty bags had been damaged. The plaintiff was informed and he came to the railway station and found forty bags drenched with rain water and heavily damaged.

    3. He took delivery of only sixty bags of sugar and declined to take delivery of the above forty bags which remained with the railway administration. After correspondence with regard to the matter in question and service of notices under section 77 of the Indian Railways Act and under Section 80 of the CPC, the plaintiff instituted a suit for recovery of a sum of Rs. 4,637/8/- as damages caused to the above forty bags of sugar against the Union of India as owner of the East Indian Railway. The suit was contested by the defendant on various grounds, but the only grounds with which I am concerned in this appeal now are that the goods were kept under proper cover and the railway employees were not negligent, that the defendant was not to pay any damages and that the plaintiff should have taken delivery of the damaged bags. It appears that on the 11th of June, 1949, the above forty bags of sugar were sold at auction by the railway administration for Rs. 2,070. The railway authorities claimed a sum of Rs. 1,904 as wharfage for keeping the bags of Sugar in their custody. The defendant, therefore, pleaded that the plaintiff could get the price of Sugar after deducting the wharfage so charged and the defendant was willing to pay the same.

    4. Both the courts below held that the railway employees were negligent in causing damage to the bags of sugar and the railway administration was liable to pay damages. They also held that the railway administration was entitled to wharfage from the 13th of September 1948, till the 11th of April, 1949, and the amount of wharfage according to the decision came to be Rs. 1,433/14/6. The trial court however, decreed the suit for a sum of Rs. 818/1/6 only. According to it, the plaintiff, was entitled to the sum of Rs. 2,070, being the price at which the forty bags of Sugar were sold at auction from which a sum of Rs. 1,433/14/6 had to be deducted as wharfage.

    5. After deducting that amount of wharfage, the amount due came to be Rs. 636/1/6 to which were added a sum of Rs. 116 being the excess wharfage recovered by the railway administration and a sum of Rs. 66 as being pendent lite interest. Thus the total amount decreed was Rs. 818/1/6. The lower appellate Court however, held that the plaintiff was entitled to the price of sugar at the rate of Rs. 28 per maund. It may be noted that the forty bags of sugar when weiged came to be about 111 maunds 10 seers. The price of the same at the rate of Rs. 28 per maund amounted to Rs. 3,115. Deducting from the above amount a sum of Rs. 1,433/14/6 the wharfage charge referred to above, the lower appellate court gave a decree to the plaintiff for a sum of Rs. 1,681/1/6. The plaintiff still being dissatisfied with this decree has presented this appeal in this Court.

    6. The main point taken in support of the appeal is that the railway authorities were not entitled to charge any wharfage. It is contended on behalf of the appellant that the damage to the bass of Sugar was caused by the negligence of the railway administration and the plaintiff was no bound to take delivery of the same and so the bags remained in the custody of the railway authorities for which they could not legally charge any wharfage. On the other hand, the contention raised on behalf of the defendant respondent is that it was incumbent on the plaintiff to take delivery of the goods even though they were damaged on obtaining a proper certificate of the amount of damage and that not having been done, the plaintiff was bound to pay wharfage for keeping the goods in the custody of the railway administration. Counsel for the appellant in support of his argument, has placed reliance on two decisions of the Allahabad High Court in Great Indian Peninsula Railway…(Defendant); v. Radhe Mal, Manni Lal…(Plaintiff).*, AIR 1925 All. 656 and B. and N.W Rly. v. Matru Ram, 25 All LJ 159 : (AIR 1927 All 220) and one decision of this Court in E.I Rly. Co. v. Bhagwan Das, ILR 1 Pat 15 : (AIR 1922 Pat 390).

    7. In the two Allahabad cases the question of the liability for wharfage was not at all under consideration and they have, therefore, no relevancy to this case. In ILR 1 Pat 15 : (AIR 1922 Pat 390) the consignee who had lost the receipt was willing to take delivery of the consignment, but the consignment had to be retained in the custody, of the railway employees as they took long time in investigating the claim of the consignee. In those circumstances it was held in that case that the Company was not entitled to charge demurrage for the period during which the goods were in its custody on account of its own delay. This case, therefore, has no application to the facts of the present case. In this case, as appears from the judgment of the lower appellate court, the damage was assessed by the railway claims inspector at Rs. 2/8/- per maund, but the plaintiff claimed the loss at the rate of Rs. 10 per maund.

    8. The railway authorities were prepared to give delivery of all the bags with a certificate of damage both as assessed by the railway claims inspector and as claimed by the plaintiff, but the plaintiff refused to take delivery and the forty bags of sugar had to be kept in the custody of the railway authorities on account of the refusal of the plaintiff to take delivery of the same. I perfectly agree with the view taken by the court of appeal below that the plaintiff should have taken the delivery of the goods with the certificate of damage and the retention of the same in the custody of the railway authorities was due to the default of the plaintiff himself. In that view of the matter, the railway authorities were in fact justified to claim wharfage from the plaintiff.

    9. Section 47(1)(f) of the Indian Railways Act provides for making general rules for regulating the terms and conditions on which the railway administration will warehouse or retain goods at any station on behalf of the consignee or owner. Rule 2 of rules for warehousing and retention of goods so framed runs as follows:

    “A consignee must take delivery of the goods forming part of a consignment whenever they are available for delivery notwithstanding that the remaining goods are short or damaged or have not arrived at their destination or are otherwise not available for delivery and if the consignee does not take delivery of such goods forming part of a consignment as are available for delivery, they will be subject to wharfage charges if not removed within the time allowed for removal.”

    This rule, therefore, entitles the railway authorities to charge wharfage if the consignee or owner of the goods refuses to take delivery of the same though they are available for being delivered to him. The plaintiff, therefore, was liable to pay wharfage in the present case because of his refusal to take delivery of the sugar in question when the railway authorities were prepared to give delivery of the same to him with a certificate of damages as referred to above. This view gains support from some of the decisions of this Court.

    10. In Suraj Mal Marwari v. Agent B.N Ry. Co., 58 Ind Cas 200 : (AIR 1920 Pat 493) the plaintiffs refused to take delivery of the consignment without the same being reweighed. It was found that their refusal was not justified and it was held that the Railway Company were entitled to charge demurrage or wharfage for warehousing or keeping the goods until such time as they found that for the sake of their preservation they must be sold. In Badridas Firm of Purulia v. Governor General for India in Council, AIR 1947 Pat 118 the consignee refused to take delivery as his claim for open delivery was refused.

    11. It was held that the railway administration was justified in charging wharfage for the period that the goods remained in the goods shed of the railway company. The same view was taken in an unreported decision of this Court in Hariram Kedia v. Dominion of India, S.A No. I of 1949 disposed of on the 24th of September 1951. The argument of the learned Counsel for the appellant that the defendant was not entitled to any wharfage, therefore, fails and is rejected.

    12. The second point taken in support of the appeal is that the court of appeal below did not grant a decree for a sum of Rs. 116 as being the excess wharfage recovered by the Railway and Rs. 66 as interest pendent lite which had been decreed by the trial court without assigning any reason for the same and, therefore, the amount of the decree passed by the lower appellate court should be increased by adding the above two items. No such ground has been taken in the grounds of appeal in this Court. A ground was taken as being ground No. 16 that the court of appeal below ought to have given pendent lite interest, but that was deleted later on. In that view of the matter, it is not possible, to allow the appellant to raise this point.

    13. The third contention raised on behalf of the appellant is that the price for the sugar should have been given at the rate of Rs. 38 per maund as claimed by the plaintiff and not at the rate of Rs. 28 per maund. The price of sugar at the control rate was Rs. 28 per maund and as the court of appeal below has observed, it was so admitted by the plaintiff himself. No evidence has been placed before me by Counsel for the appellant to show as to what was the market rate of sugar at the relevant time. It is not, therefore, possible to vary the decree of the lower appellate Court on this ground.

    14. Lastly it was submitted that the forty bags of sugar were sold without weighment and the railway authorities had no right to sell the same without having the sugar weighed. But it appears that the sugar was sold at auction by bagwise with a notice to the plaintiff and no objection was taken by him to such a sale. This contention also, therefore, has to fail.

    15. No other point has been raised.

    16. For the reasons given above, there appears to be no merit in this appeal which is accordingly, dismissed with costs.

    GC/V.R.B

    17. Appeal dismissed.

    Use AI to get other relevant cases.

    Comments

    Vishun Prasad Bhadani v. Union Of India
    (Mar 16, 1959)