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Court Opinion Summary — S.N.P. Singh, J.

Factual and Procedural Background

The plaintiff is a firm named Gyani Ram Bhagat Ram, a general merchant and commission agent at Mokamah (Patna). The plaintiff purchased 202 bags of arhar dal (505 maunds) through a commission agent at Debai on the North Eastern Railway; the consignment was booked to the plaintiff at Mokamah Junction "under railway risk."

While in transit, at Dinapur a wagon door was found open and re-sealed. On arrival at Mokamah on 29 June 1954, some bags were observed to be slack and loose. The plaintiff's representative asked that each bag be weighed, but the railway would only weigh 28 bags that were visibly slack and promised certificates; the Station Master weighed two sound bags showing they were under average weight.

Correspondence followed. On 4 August 1954 the Chief Commercial Superintendent informed the plaintiff that 28 bags were found slack and loose, and that if the plaintiff did not take delivery (on payment of wharfage and freight) the goods would be sold. The railway sold the goods at public auction on 7 December 1954 for Rs. 3,025. The plaintiff served notice under Section 77 of the Indian Railways Act and Section 80 CPC and sued for recovery of Rs. 7,958-11-6.

The defendants (Eastern Railway, represented by Union of India) pleaded that the plaintiff had no right to insist on open delivery, that any deterioration was due to plaintiff's laches in not taking delivery, and that only 28 bags were slack and had been separated. The defendants counterclaimed Rs. 7,193/9/- for freight and wharfage less sale proceeds.

At trial the Additional Subordinate Judge accepted the railway's defence, held plaintiff responsible for not taking delivery, dismissed plaintiff's suit, and allowed the counterclaim to the extent of Rs. 3,030/4/- (netting to Rs. 4/12/- after sale proceeds). The plaintiff appealed (First Appeal No. 413 of 1957). The learned single Judge in that appeal reversed the trial court, decreed the plaintiff in full, and disallowed the counterclaim, reasoning that the plaintiff was justified in refusing delivery pending weighment and was not liable for charges for retention; the railway then appealed under Clause 10 of the Letters Patent to the present Division Bench.

Legal Issues Presented

  1. Whether the plaintiff (consignee) is entitled to any relief (damages or recovery) on the basis of the defendants' refusal to give "open delivery" or to re-weigh the consignment at the destination.

Arguments of the Parties

Plaintiff's (Appellant in first appeal) Arguments

  • The plaintiff refused to take delivery because it sought re-weighment of each bag; the representative asserted that many bags (beyond the 28) were defective or underweight.
  • The plaintiff relied on the railway's alleged refusal to re-weigh and claimed loss, seeking recovery totaling Rs. 7,958-11-6 after serving notices under Section 77 (Indian Railways Act) and Section 80 CPC.

Defendant's (Railway / Union of India) Arguments

  • The railway contended it was not bound to give "open delivery" or to re-weigh consignments at destination as a matter of right.
  • The railway alleged any deterioration was due to the plaintiff's laches in not taking delivery when offered; only 28 bags were slack and those were kept separate and the railway offered to weigh those and issue certificates.
  • The railway relied on its right to charge wharfage and, after non-payment, to sell the goods; it counterclaimed freight and wharfage due (Rs. 7,193/9/-).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Suraj Mal Marwari v. B.N. Rly. Co., AIR 1920 Pat 193 (58 Ind Cas 200) Consignee cannot justify refusal to take delivery on the ground that re-weighment was not granted; if dissatisfied, consignee should take delivery, pay charges, then seek refund or remedy. Cited to support the proposition that a refusal to re-weigh does not, as of right, justify withholding delivery and thereby cannot by itself ground a damage claim.
Badridas Firm of Purulia v. Governor-General for India in Council, AIR 1947 Pat 118 Consignee is not entitled as of right to demand open delivery; railway may charge wharfage where consignee insists on something not legally due. Relied on to show that insistence on open delivery, not legally available, does not excuse delay in taking delivery and can justify wharfage charges.
Vishun Prasad Bhadani v. Union of India (1959 BLJR 404; AIR 1960 Pat 323) Consignee liable to pay wharfage when he refuses delivery though railway offers delivery with certificate of damage; earlier decisions reiterated. Used to illustrate established line of authority that refusal to take delivery when delivery with certificate offered exposes consignee to liability for charges.
Dehri Rohtas Light Rly. Co. Ltd. v. East Keshalpur Colliery, AIR 1963 Pat 46 Consignor or consignee is not justified in refusing delivery on account of bad quality or shortage; the remedy is to take delivery and sue for damages if appropriate. Cited to reinforce that quality/shortage complaints do not give an absolute right to refuse delivery; refusal is at consignor/consignee's own risk.
Union of India v. Agarwal Colour Co., Civil Revision No. 1199 of 1962 (Pat) — unreported Plaintiff not entitled to insist upon open delivery; if damaged, plaintiff must prove both factum and extent of damage to recover. Referred to for the principle that absence of proof of extent of damage (often because consignee did not take delivery) defeats a damage claim.

Court's Reasoning and Analysis

The Division Bench (S.N.P. Singh, J., with Choudhary, J. concurring) proceeded by identifying the single determinative point: whether the plaintiff was entitled to relief on the defendants' refusal to give open delivery or re-weighment.

The court reviewed the settled legal position in the precedents cited: the railways are not legally bound to re-weigh consignments or certify shortages at the time of delivery; consignors/consignees who are dissatisfied with freight or condition should ordinarily take delivery and pursue remedies thereafter. The court emphasized that Rule 18 of the defendant's Goods Tariff Part I ("Railways do not undertake to weigh consignments at destination stations as a matter of course. Such weighments... only... in exceptional cases when the condition... warrants this.") confers discretion on the railway to permit re-weighment in exceptional cases.

The single Judge in the first appeal had read Rule 18 to permit re-weighment in the present facts and found the railway's refusal unjustified, applying Section 160 (as a bailee obligation) and concluding the exception in Rule 18 was applicable. The Division Bench accepted the factual findings of the learned single Judge (and noted those facts were not challenged): that a wagon door had been found open in transit, 28 bags were slack and separated, railway servants were willing to weigh those 28 bags and give certificates, and the plaintiff's representative refused to take delivery and insisted on weighment of all bags.

Despite these facts, the Division Bench articulated two central legal points in its analysis:

  • First, because the railways are not bound as a matter of law to re-weigh consignments (Rule 18 creates a discretion), a consignee cannot, as of right, convert the railway's refusal (whether right or wrong) to give open delivery into the sole basis for a damages claim. It is for the railway to decide whether circumstances justify weighment.
  • Second, if a plaintiff claims loss or damage, the plaintiff must prove both the factum and the extent of damage. The court stressed that in the absence of such proof — and where the plaintiff had not produced evidence of the actual loss or its extent — a decree for damages cannot be granted merely because the railway refused open delivery or weighment.

Applying these principles to the admitted facts, the court observed that the railway offered to weigh the 28 visibly defective bags and to give certificates, and was insisting on immediate delivery otherwise. The plaintiff's refusal to accept that offer and failure to provide evidence of the actual extent of damage meant the plaintiff could not succeed in a damage claim. Therefore, there was no legal basis to award relief to the plaintiff simply on the ground of refusal to give open delivery.

The court noted the trial court had accepted the railway's defence and that no argument against the trial court's allowance of the railway's counterclaim was advanced by the plaintiff before the Division Bench.

Holding and Implications

Core Ruling: The Division Bench allowed the railway's appeal under the Letters Patent and held that the plaintiff is not entitled to any relief based solely on the defendants' refusal to grant open delivery or re-weighment.

More precisely, the court SET ASIDE the judgment and decree of the learned single Judge, and RESTORED the judgment and decree of the trial court (which had dismissed the plaintiff's suit and allowed the defendants' counterclaim in a net small amount). The court directed that the parties shall bear their own costs of the appeal.

Implications:

  • Direct effect on the parties: the plaintiff receives no recovery; the trial court's dismissal and the result on the counterclaim are reinstated; the parties bear their own costs.
  • The decision applies and reiterates the settled principle (as reflected in earlier Patna High Court decisions) that railways are not bound to re-weigh at destination as a matter of right; a consignee cannot obtain damages merely because re-weighment or open delivery was refused, absent proof of actual damage and its extent.
  • The court did not purport to lay down any broader novel precedent; it applied established authorities and rules (Rule 18 and earlier case law) to the facts before it.

Disposition: Appeal allowed. Judgment of the single Judge set aside; trial court's judgment restored; parties to bear their own costs.

    The Union Of India v. Gyani Ram Bhagat Ram .

    S.N.P Singh, J.:— This appeal by the defendants under Cl. 10 of the Letters Patent is directed against the judgment and decree passed by the learned single Judge in First Appeal No. 4.13 of 1957.

    2. The plaintiff is a firm named Gyani Ram Bhagat Ram and it carries on business of general merchant and commission agent at Mokamah in the district of Patna. The plaintiff brought a suit for recovery of a sum of Rs. 7,958-11-6 from the defendants, Eastern Railway, represented by the Union of India on the following allegations. The plaintiff purchased 202 bags of Arhar Dal weighing 505 maunds through its commission agent Messrs Premnarain Gobind Narain at Debai on the North Eastern Railway. The consignment was booked to the plaintiff as consignee to Mokamah Junction under railway risk. When the wagon containing the consignment had reached Dinapur, the door of one side of the wagon was found open. It was re-sealed before the train left that station. The consignment reached the destination on the 29th June, 1954, and at the time of unloading some of the bags were found slack and loose. The representative of the plaintiff, who was present at the Mokamah Railway Station to take delivery of the consignment, asked for delivery on weighment of each bag but the goods clerk refused to weigh more than 28 bags which were found slack and loose. Thereupon the representative of the plaintiff approached the Station Master but the latter also did not accede to his request. The Station Master, however, weighed two sound bags and found that each of them weighed 2 maunds and 15 seers as against the average weight of 2 maunds and 21 seers each.

    3. Some correspondence between the plaintiff and the higher authorities of the Railways followed about giving delivery of the goods after reweighment of all the bags. On the 4th of August 1964, the Chief Commercial Superintendent, Eastern Railway, sent a letter to the plaintiff informing him that the matter had been enquired into by the Commercial Traffic Inspector and the latter had found only 28 bags in slack and loose condition. In that letter the plaintiff was further informed that if he failed to take delivery of the goods within a fortnight on payment of Rs. 2,475-4-0 as wharfage and Rs. 556-7-0 as the freight, the goods would be sold. Ultimately the Railway sold the goods by public auction on the 7th of December 1954, for Rs. 3,025. The plaintiff after serving notice under Section 77 of the Indian Railways Act gs well as under Section 80 of the CPC brought the suit on the aforesaid allegations.

    4. The defendants contested the suit of the plaintiff and took a plea that the plaintiff lad no right to ask for open delivery and that the deterioration of the goods, if any, was due to the laches on the part of the plaintiff in not taking delivery of the same when they were offered to be delivered to it. It was further alleged by the defendants that only 28 bags put of the consignment were found slack and loose and they had been kept separate from the rest. The defendants made a counter claim for a sum of Rs. 7193/9/- from the plaintiff as charges due to them on account of the freight and wharfage after deduction of the sale proceeds obtained by them.

    5. The learned Additional Subordinate Judge, who tried the suit, accepted the defence of the Railways that they were not bound to five open delivery to the plaintiff. He further eld that the plaintiff was responsible for not taking delivery of the consignment and that it was not a case of refusal by the railway authorities to deliver the goods so as to constitute gross misconduct on their part. The learned trial Judge, therefore, dismissed the suit of the plaintiff and allowed the counter claim of the defendants to the extent of Rs. 3030/4/- but as they had with them a sum of Rs. 3025/- out of the sale proceeds of the goods sold by public auction by them, a decree for a sum of ps. 4/12/- only was passed in their favour. Being aggrieved by and dissatisfied with the Judgment and decree of the trial court, the plaintiff filed First Appeal No. 413 of 1957 in this Court.

    6. The learned single Judge, who heard the first appeal, reversed the judgment and degree of the trial court and decreed the suit of the plaintiff in full and disallowed the counter claim of the defendants on his view that in the circumstances of the instant case the plaintiff was justified in refusing to take delivery of the goods before weighment by the defendants and to plaintiff firm was not liable to pay any charge for the retention of the goods in the railway premises.

    7. The sole point for determination in the resent appeal is whether the plaintiff is ended to any relief on the basis of the refusal of the defendants to give an open delivery of the consignment.

    8. It is well settled that the Railways are not bound by law either to reweigh the goods or certify shortage at the time of delivery to the consignee. The earliest decision of this Court which has been brought to our notice is a Bench decision in the case of Suraj Mal Marwari v. B.N Rly. Co., AIR 1920 Pat 193 equivalent to 58 Ind Cas 200. In that case it was observed as follows:—

    “The plaintiffs therefore cannot claim that the refusal to take delivery was justified on the around that re-weighment was not granted before delivery. It is dear that if the plaintiffs were dissatisfied either with the amount of freight charged or the condition of the goods when they arrived, they should have taken delivery and paid the charges demanded and would then have been able to take steps to obtain any refund which was proved due to them.

    9. In the case of Badridas Firm of Purulia v. Governor-General for India in Council, AIR 1947 Pat 118 a single judge of this Court took a similar view and held that a consignee is not entitled as of right to claim an open delivery. In that case the point for consideration was whether the Railways were entitled to charge wharfage because of the fact that the goods remained in the goods shed due to the refusal of the railway administration to give an open delivery. The learned single Judge referred to a decision of the Allahabad High Court and relying on that decision held that the plaintiff was not entitled as of right to claim an open delivery. He further observed as follows:—

    “That being so, the plaintiff was insisting upon something to which he was not in law entitled. In my opinion, therefore, the railway administration was justified in charging wharfage for the period that the goods remained in the goods shed of the Railway company. The plaintiff should have arranged to take delivery as soon as the goods arrived and then he should have pursued his remedies, if any. Instead of doing that he insisted upon something to which he was not entitled. If he had to pay for that he has to thank himself and nobody else.”

    10. In the case of Vishun Prasad Bhadani…Plaintiff v. Union Of India…Defendant ., 1959 BLJR 404 : (AIR 1960 Pat 323) my learned Brother sitting singly relied on the earlier two decisions of this Court mentioned above and held that the consignee was liable to pay wharfage 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 damage. The above-mentioned cases have been noticed by the learned single Judge in his judgment. Two recent Bench decisions of this Court have been brought to our notice in which the same view has been reiterated.

    11. In the case of Dehri Rohtas Light Rly. Co. Ltd. v. East Keshalpur Colliery, AIR 1963 Pat 46 it was observed as follows:

    “Mr. Mitra argued that this company was justified in refusing to take delivery, because the coal in question was not fit for burning time stone. But it is well settled that a consignor or a consignee of goods is not justified in refusing to take delivery from the railway on the ground that the quality of the consignment was bad or that there was a shortage in consignment at the time of delivery. It is also well settled that a consignor or a consignee is entitled to sue the railway for damages in such cases and that, if he refuses to take delivery, he does so at his own risk.

    12. In Civil Revn. No. 1199 of 1962, disposed of on 22-2-1966 (Pat), Union of India v. Agarwal Colour Co., (unreported), one of the points for consideration was whether the plaintiff was entitled in law to insist upon open delivery. It was held that the law on the point was settled and the plaintiff was not entitled to refuse to take delivery of the consignment on the ground that the railway authorities did not give open delivery in respect of the same. It was further observed as follows:

    “If the consignment in question had been damaged, then the plaintiff could recover compensation for the damage from the railway administration. But, in that case, the plaintiff would have to prove both the factum as well as the extent of the damage. In the present case, there is absolutely no evidence to establish what was the extent of the damage, if any, caused to the consignment. The reason for want of evidence on this point obviously was the plaintiff's own default in not taking delivery of the consignment in consequence of which the plaintiff itself was not aware of the extent of the damage to the consignment. Without proof of the extent of the damage to the consignment, the plaintiff cannot get any decree in this suit.”

    13. My learned Brother was a party to that decision.

    14. Before the learned single Judge reliance was placed on behalf of the Railway on Rule 47 of Goods Tariff, Part I, which reads as follows:

    “A consignee must take delivery of 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.”

    15. The learned single Judge on construing the rule took the view that the rule did not give any assistance to the defence in the instant case inasmuch as it related to the circumstances in which the Railways are entitled to realise wharfage charges from a consignee when he fails to take delivery of a part or the consignment on the ground that the remaining part did not arrive or was short or was damaged but did not speak of absence of any right of the consignee to ask for open delivery nor provided that the Railways are not bound to give in any circumstances whatsoever open delivery of any consignment.

    16. According to the learned single Judge, the relevant rule is Rule 18, which reads as follows:—

    “Railways do not undertake to weigh consignments at destination stations as a matter of course. Such weighments at destination stations can only be considered in exceptional cases when the condition of the consignment or package warrants this.”

    17. Construing Rule 18, the learned single Judge has taken the view that although, as a matter of course, a consignee cannot claim open delivery or the railway cannot undertake re-weighment at the destination station, yet, there may be justifying circumstances in a particular case, where such re-weighment at the destination station can be allowed, particularly in view of the condition of the consignment or packages as they arrive at the destination station.

    18. On the facts of the instant case, namely, that the door of one side of the wagon was found open at Dinapur Station when the consignment reached there on its way to Mokamah; that the unloading clerk found 28 bags to be slack and in loose condition and those bag were stacked separately, that the railway servants were willing to weigh those bags before delivery and give a certificate of shortage; that the plaintiff represented to the defendants' officers that there were many other bags which were also in defective condition and that some of those bags were admitted to have been reweighed by the railway officer and found to have contained six seers less each, the learned single Judge held that the plaintiff was not unjustified in asking for re-weignment when that was permissible under the practice and rules obtaining with the defendants before the delivery of the consignment and that the refusal by the officers of the railway to accede to the request of the plaintiff was unjustified and that the detention of the goods since they arrived at Mokamah till they were sold by public auction was due to the unreasonable refusal on the part of the defendants.

    19. The learned single Judge further referred to Section 160 of the Contract Act and observed as follows:—

    “The defendants in this case were no doubt in the position of a bailee and they were bound to deliver the goods bailed with them. As a common carrier they were equally bound to deliver the goods given to them for carriage. In the present case the carriage of the goods was at railway risk. If there were obvious signs of defect in the consignment at the destination, it was only meet and proper for the defendants, unless there was any statutory rule against that, to satisfy the request of the consignee about the weighment of the goods, particularly when some of them were found in apparent defective condition and with shorter weightage.”

    20. Ultimately he held that the present case justified the application of the exception provided under Rule 18.

    21. In the present appeal the facts found by the learned single Judge have not been challenged before us. The only contention put forward by learned counsel appearing for the Railway is that the plaintiff is not entitled to a decree for damages on the basis of the refusal of the defendants to give open delivery of the consignment in question. In my opinion, there is substance in the contention raised.

    22. As I have already stated, it is well settled that the Railway are not bound by the law to re-weigh as goods or certify shortage at the time of delivery of the goods to the consignee. The first part of Rule 18 makes it perfectly clear that one of the conditions imposed by the Railways in connection with the booking of a consignment is that they would not weigh the consignment at the destination station. In exceptional cases, however, weighment at the destination station can be allowed at the discretion of the Railways when in their opinion the condition of a particular consignment or package warrants such a weighment. When the Railways are not bound by law to re-weigh a particular consignment at the destination station, it is really difficult to hold that a consignee can found his claim for damages in absence of any proof of actual damage of the goods because under Rule 18 re-weighment at the destination station is permissible by the Railways at their discretion in certain exceptional cases. It is for the Railways to decide in a particular case whether there are justifying circumstances for re-weighment at the destination station or not. A consignee may be fully justified in asking for re-weighment at the destination station but if in law the Railways are not bound to give open delivery of the consignment, the consignee cannot base his claim merely on the refusal, rightly or wrongly, of the railway authorities to give open delivery of the consignment. The Railways as a bailee are no doubt bound to deliver the goods to the consignee as soon as the consignment reaches the destination station. They were also no doubt bound to compensate for the loss or damage, if any, of the consignment if the consignment is booked at railway risk.

    23. In the instant case, so far as the delivery of the consignment is concerned, it is the admitted position that the officers of the Railways were insisting on immediate delivery and before delivery they were willing to weigh those 28 bags of Dal which were found slack and in loose condition and give a certificate of shortage. In spite of that the plaintiff's representative refused to take delivery.

    24. Therefore, it cannot be said that there was refusal by the Railways to give delivery of the consignment. So far as actual loss or damage of the consignment is concerned, the plaintiff has not led any evidence in the instant case to prove as to what was the actual loss or damage of the goods. As was observed in Civil Revn. No. 1199 of 1962 (Pat), if the consignment had been damaged, the plaintiff could recover compensation on roof of the factum as well as the extent of the damage. In absence of such a proof the plaintiff, in my opinion, cannot get a decree for damages or compensation merely on the basis of the refusal of the Railways to give open delivery.

    25. For the reasons stated above, I am of the view that in the instant case the plaintiff is not entitled to any relief. No argument on the counter claim which was allowed to the defendants by the trial court was advanced on behalf of the plaintiff.

    26. In the result, I allow this appeal, set aside the judgment and decree of the learned single Judge and restore those of the trial court. In the circumstances of the case, I direct that the parties will bear their own costs of this appeal.

    27. Choudhary, J.:— I agree.

    JJ/RKC/G.G.M

    28. Appeal allowed.

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    Comments

    The Union Of India v. Gyani Ram Bhagat Ram .
    (Jul 27, 1966)