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Case Summary — Revision in Suit Against Secretary of State for India (G.I.P. Railway)

Factual and Procedural Background

The plaintiff brought a suit in the Court of Small Causes at Agra against two railway administrations: (1) the G.I.P. Railway (with the Secretary of State for India named as defendant 1, sued “through the Agent, G.I.P. Rly., Bombay”) and (2) the Bombay Port Trust Railway. The monetary claim was for Rs. 200, comprising Rs. 167-4-0 alleged to have been wrongfully realised on a consignment from Bombay (Store Depot) to Agra (Belanganj), Rs. 27-12-0 for "loss of interest", and Rs. 5 for "cost of notices."

The plaintiff alleged that, before purchasing railway materials from G.I.P. Railway, he enquired about freight rates from the Chief Traffic Manager, who by letter No. Q 3/49 dated 3 November 1936 assured him that the rate for "railway materials" from Bombay to Belanganj would be 0-5-2 per maund. The plaintiff said he purchased the materials (the date of purchase is not stated in the plaint and was not disclosed at trial), and later booked the materials on 16 March 1937. At booking, the clerk inserted a rate of 0-9-4 per maund in the consignment receipt; the plaintiff alleged this resulted in an overcharge of Rs. 167-4-0.

The Court below decreed the suit against defendant 1 (the Secretary of State for India) and dismissed it against defendant 2 (Bombay Port Trust Railway). Defendant 1 filed this application in revision. By oversight, Bombay Port Trust Railway was also shown as an applicant; the Crown counsel sought and obtained leave to strike the Bombay Port Trust Railway from the array of parties.

The Secretary of State for India contested the suit, asserting (inter alia) that the rate quoted by the Chief Traffic Manager applied only to railway materials intended for railway use and consigned to a recognised railway official, not to the class of goods consigned by the plaintiff; that the booking clerk correctly calculated the charge; and that the suit was not maintainable because the statutory notice required by Section 80, Civil P.C., as amended, was not properly served.

Legal Issues Presented

  1. Whether the statutory notice required by Section 80, Civil P.C., as amended by the Adaptation Order of 1937, had been validly served when the plaintiff sent notice only to the Collector of Agra (21 May 1937) and not to the officers specified by the amended section in suits against the Secretary of State for India.
  2. Whether the Court below was correct in holding that Section 179 of the Government of India Act, 1935, rendered the notice sufficient where the cause of action accrued before the amendment of Section 80.
  3. On the merits, whether the plaintiff was entitled to recover the alleged overcharge where (a) the booking clerk at the origin calculated and inserted the rate of 0-9-4 per maund in the receipt and (b) the Chief Traffic Manager's quoted rate purportedly applied to "railway material" but there was evidence that the consigned goods were "old iron scrap" and that the lower railway-material rate did not apply to scrap intended for the public.

Arguments of the Parties

Plaintiff's Arguments

  • The Chief Traffic Manager, by letter dated 3 November 1936, assured the plaintiff that the rate for railway materials from Bombay to Belanganj would be 0-5-2 per maund; the plaintiff purchased the materials relying on that assurance.
  • The plaintiff booked the consignment on 16 March 1937 and the railway staff at the sending station wrongfully calculated and inserted a rate of 0-9-4 per maund in the receipt; as a result Rs. 167-4-0 was realised in excess of what was due.
  • The plaintiff served notices on both defendants (stated in para. 11 of the plaint) but payment was not made; he sought recovery of the excess amount with interest and costs of notices.

Defendant's (Secretary of State for India) Arguments

  • The rate quoted by the Chief Traffic Manager applied only to railway materials intended for the use of the railway and consigned to a recognised railway official; it did not apply to the goods consigned by the plaintiff on 16 March 1937.
  • The booking clerk at the station correctly calculated the amount payable; the plaintiff was never called upon to pay anything in excess of the proper charge for the goods consigned.
  • The suit was not maintainable because the notice required by Section 80, Civil P.C., as amended, had not been delivered to the appropriate officers (i.e., notice was only sent to the Collector of Agra and not to the Secretaries required by the amended provision).
  • The learned standing counsel for defendant 1 requested that the Bombay Port Trust Railway be removed from the applicant array (that step was granted).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Firm Ram Lal Bhikam Chand v. Secretary of State ('37) 24 A.I.R. 1937 All. 400 Mentioned as comparative authority in relation to disputes with railway administrations. The court observed that the railway administration's case in the present matter was stronger than it had been in this earlier case (used for comparative assessment of the parties' relative strengths).
Firm Ganga Prasad-Ratan v. Secretary of State ('37) 24 A.I.R. 1937 All. 642 Mentioned as comparative authority in relation to disputes with railway administrations. The court observed that the railway administration's case in the present matter was stronger than in this earlier case (again used for comparative assessment).
Bhagwati Prasad v. B.B. and C.I. Railway ('40) 27 A.I.R. 1940 All. 235 The court stated that the principle of the decision in this case is relevant to the present dispute. The court held that the principle of this decision is applicable to the present case and relied on it in reaching its conclusion on the merits.

Court's Reasoning and Analysis

The revision court analysed the matter in two principal parts: (A) the question of statutory notice under Section 80, Civil P.C., as amended; and (B) the merits of the claim on the facts pleaded and proved.

(A) Notice under Section 80, Civil P.C.

The court noted that Section 80 (as amended by the Government of India (Adaptation of Indian Laws) Order, 1937, effective 1 April 1937) contained, in clause (d), a requirement that when a suit is brought against the Secretary of State a written notice could not be validly served simply at the Collector; rather, notice had to be delivered to or left at the office of specified central and provincial Secretaries (a Secretary to the Central Government, the Political Secretary and a Secretary to the Provincial Government of the Province where the suit is instituted) and two months had to elapse after such notice before instituting suit.

It was admitted that the plaintiff's only act was to send notice to the Collector of Agra on 21 May 1937. The court held that this did not comply with the amended Section 80 requirements and was therefore wholly defective.

The court rejected the Court below's reliance on Section 179 of the Government of India Act, 1935, as justification for treating the notice as sufficient. The revision court explained that Section 179 (specifically sub-section (1), the only potentially relevant sub-section) concerns who must be named as a defendant (i.e., whether proceedings could be brought against the Federation, a Province or at the option of the plaintiff against the Secretary of State) and does not address the procedural question of how statutory notice must be served prior to instituting a suit. The court emphasised that the provisions of Section 80 of the Code must be strictly complied with.

(B) Merits

Even on the merits the court found the plaintiff's case weak. The reasoning was:

  • The plaint itself admitted (para. 5) that the booking clerk at the origin calculated and inserted the freight charge at the rate of 0-9-4 per maund. The court reasoned that when the clerk at the booking station stated the rate, the plaintiff had the option not to consign the goods; by consigning the goods notwithstanding that statement, the plaintiff must be taken to have accepted the rate and the suit appeared to be an afterthought.
  • The court criticised the Court below for relying on testimony that was inconsistent with the pleadings: the plaintiff's witness said that if the Chief Traffic Manager had informed him the rate would be 0-9-4 he would have sent the goods by a different railway or to a different destination. The plaint had not pleaded that course; instead it pleaded that, had the Chief Traffic Manager quoted 0-9-4, the plaintiff would have made his purchase on the basis of that higher rate and would not have purchased the goods from defendant 1. The court therefore found the oral evidence at variance with the pleaded case.
  • The court observed that the Chief Traffic Manager's quoted rate was for "railway material" (per his letter of 3 November 1936) and that evidence by the defendant's delivery clerk, Shyam Sunder, was that the railway-material rate of 0-5-2 did not apply to scrap iron and that 0-9-4 was the applicable public rate for scrap iron. The consignment receipt described the goods as "old iron scrap."
  • The court concluded that the plaintiff had not established entitlement to recover the claimed sum, and that the railway administration's position was stronger than in earlier cited decisions.

On these combined grounds (defective statutory notice and lack of merit on the facts and evidence), the court allowed the revision, set aside the decree of the Court below, and dismissed the suit against defendant 1 with costs.

Holding and Implications

Holding: The revision application was allowed; the decree of the Court below was set aside; the suit against defendant 1 (the Secretary of State for India, representing the G.I.P. Railway) was dismissed with costs throughout.

Implications:

  • Direct effect: The plaintiff's decree against defendant 1 was vacated and the suit as against that defendant stands dismissed with costs.
  • Procedural implication emphasised by the court: strict compliance with the amended requirements of Section 80, Civil P.C. (as adapted in 1937) is mandatory where suit is brought against the Secretary of State for India; a notice sent only to the Collector of Agra was held insufficient.
  • Broader precedent: The opinion resolves the dispute on established statutory and evidential grounds but does not purport to announce any new legal principle beyond its application of Section 80 and established evidential reasoning; no broader new precedent is declared in the opinion.

This summary is based exclusively on the content of the provided opinion and does not add information beyond what is contained in that text.

    Secretary Of State v. Nawal Kishore

    1. The decision of the Court below is manifestly wrong and this application in revision must be allowed. The suit which has given rise to this application was brought by the opposite party in the Court of Small Causes at Agra against two Railway administrations, namely, the G.I.P. Rly. and the Bombay Port Trust Railway. The former being a State railway, the "Secretary of State for India" was named as defendant 1 and he was sued "through the Agent, G.I.P. Rly., Bombay." The claim was for the recovery of a sum of Rs. 200. This sum was made up of Rs. 167-4-0 which, the plaintiff alleged, had been wrongfully realised from him on a consignment which he had booked from Bombay (Store Depot) to Agra (Belanganj), Rupees 27-12-0 on account of "loss of interest" and Rs. 5 "cost of notices." The Court below decreed the suit against defendant 1, the Secretary of State for India, and dismissed it against defendant 2, the Bombay Port Trust Railway. This application for revision is on behalf of defendant 1, the Secretary of State for India, but, by an oversight on the part of the office of the Crown counsel, the Bombay Port Trust Railway has also been shown as an applicant. The learned standing counsel has prayed for leave to strike out the name of the Bombay Port Trust Railway from the array of parties and I have granted such leave. The plaintiff alleged in para. 1 of the plaint that the G.I.P. Rly. had certain railway materials, "such as scrap tramway rails and scrap iron sheets, etc.," for sale. Paragraph 2 of the plaint runs as follows :

    That as the plaintiff wanted to purchase these railway materials from the G.I.P. Rly. he enquired from the Chief Traffic Manager, G.I.P. Rly. Bombay (who was the proper authority to quote rates) before he submitted his order for the purchase from defendant 1.

    2. Although the language of this paragraph is defective, I take it that what the plaintiff means is that he enquired from the Chief Traffic Manager of the G.I.P. Railway what was the rate at which goods of this description were charged if consigned for conveyance over that railway to a particular destination. It was then alleged that the Chief Traffic Manager by his letter No. Q 3/49 dated 3rd November 1936 assured the plaintiff that the rate for railway materials from Bombay to Belanganj will be charged at 0-5-2 per maund....

    3. The plaintiff went on to allege that it was on the basis of this "assurance and information" that he purchased the materials aforesaid from the G.I.P. Railway. The date of the purchase was, however, neither stated in the plaint nor disclosed in the course of the trial of the suit. It was next alleged that the plaintiff booked those materials from Bombay (Store Depot) to Agra (Belanganj) on 16th March 1937. It may be mentioned here that it is common ground that the freight on the consignment was to be paid at the time of the delivery of the goods at the place of destination, viz., Belanganj. In para. 5 of the plaint it was alleged that "the railway staff of the sending station" wrongfully calculated the amount which was to be paid at Belanganj at the rate of 0-9-4 per maund and inserted that rate and amount in the receipt, which they gave to the plaintiff and that this was done in spite of the fact that "the certificate of the recognised officer was also produced." It has not been explained to me what this "certificate of the recognised officer" was and my attention has not been drawn to any such 'certificate'. In para, 6 of the plaint the plaintiff alleged that if the Chief Traffic Manager had informed him that the rate would be 0-9-4 per maund, the plaintiff would have made his purchase at a less rate making his calculation at the rate of 0-9-4 per maund or would not have purchased the said railway materials from defendant 1.

    4. It was alleged in the succeeding paragraphs that a sum of Rs. 167-4-0 had thus been realised from the plaintiff over and above the amount which ho was liable to pay in accordance with the rate quoted in the communication of the Chief Traffic Manager and that he was entitled to recover that amount from the defendants together with the interest and the "cost of notices" claimed. In para. 11 it was stated that the plaintiff had "served both the defendants with notices," but that the amount had not been paid. The Secretary of State for India contested the suit and alleged that the rate quoted by the Chief Traffic Manager in his letter of 3rd November 1936 applied only to those railway materials which were intended for the use of the railway and were consigned to any recognised railway official and did not apply to the class of goods which were consigned by the plaintiff on 10th March 1937. It was averred that the booking clerk of the place at which the consignment was booked rightly calculated the amount which the plaintiff had to pay and that the plaintiff had never been called upon to pay anything in excess of what was the proper charge in respect of the goods which he consigned. It was further pleaded that the suit was not maintainable as no notice was delivered or loft at the offices of the proper officers as enjoined by Section 80, Civil P.C., as it stood at the time when the plaintiff issued the notice of his proposed suit. The learned standing counsel, appearing for the applicant, has .urged that the Court below was wrong in holding that the notice of the suit, which was admittedly sent by the plaintiff to the Collector of Agra, was a proper notice and that the plaintiff was entitled to recover the sum of money claimed.

    5. In my judgment both the contentions of the learned standing counsel are well-founded. It is admitted that the plaintiff sent a notice of the proposed suit to the Collector of Agra on 21st May 1937. Section 80, Civil P.C., was amended by the Government of India (Adaptation of Indian Laws) Order, 1937, which came into operation on 1st April 1937. By Clause (d) of the amended ' section no suit can be instituted against the Crown until the expiration of two months next after notice in writing has been delivered to or left at the office of a Secretary to the Central Government, the Political Secretary and a Secretary to the Provincial Government of the Province where the suit is instituted in a case where the suit is against the Secretary of State. This was the law in force when the plaintiff in the present suit issued his notice. It being admitted that all that the present plaintiff did was to send a notice to the Collector of Agra, it is clear that the provisions of section 80 were not complied with. The Court below has dealt with the issue which was framed with regard to this question--issue 4--in a few lines. All that it has said is that the cause of action accrued before section 80 of the code was amended and that under Section 179, Government of India Act of 1935, the notice was not defective. I am not able to see what Section 179, Government of India Act of 1935, has got to do with this question. The section has got five sub-sections and the Court below does not state on which particular sub-section it relies. Sub-sections (2) to (5) are clearly irrelevant and thus the only sub-section that need be considered is Sub-section (1). What is laid down in that portion of that sub-section which alone is material is that, in the case of any liability arising before the commencement of part 3 of the Act--the part which deals with the Governors' Provinces --or arising under any contract or statute made or passed before that date, any proceedings which, if the Act had not been passed, might have been brought against the Secretary of State in Council, may be brought against the Federation or a Province, according to the subject-matter of the proceedings, or, at the option of the person by whom the proceedings are brought, against the Secretary of State. It seems to me obvious that what the sub-section is concerned with is the person who is to be named as a defendant in suits of the description mentioned there, and not with any question of notice which has to be served before the suit can be maintained at all. The matter of notice is dealt with in Section 80, Civil P.C., and it is undeniable that the provisions of that section of the code have to be strictly complied with. In my judgment, the notice which the plaintiff issued in this case was wholly defective and the suit should have been dismissed on that ground alone.

    6. On the merits also the plaintiff's case, in my opinion, was without any substance. In view of the conclusion at which I have arrived on the question of notice, I need only briefly state my reasons for holding that the suit should have been dismissed on the merits also. In the first place, it was admitted in the plaint--para. 5--that the clerk whose duty it was to book the consignment calculated the amount that had to be paid on account of freight at the rate of -/9/4 per maund. Thus, this is not a case in which the plaintiff was told at the station where the consignment was booked that he would be charged at a certain rate and a further amount was demanded at the place of destination before delivery was given. When the clerk at the place where the consignment was booked stated that the rate was -/9/4 per maund, it was open to the plaintiff not to consign the goods at all. By consigning the goods in these circumstances, the plaintiff must be taken to have agreed to the rate of -/9/4 per maund and this suit must be held to be an afterthought. In the second place, the basis of the judgment below is a statement of the plaintiff in the witness-box that if the Chief Traffic Manager had informed him that the rate would be -/9/4 per maund he would have sent the goods by the B.B. & C.I. Railway over which, according to the plaintiff, the rate "for condemned railway materials" was -/8/4 per maund, or he might have booked the consignment to Delhi. The learned Judge fails to notice that this was not the case set up in the plaint in which, as has been shown above, it was stated that, if the Chief Traffic Manager had quoted -/9/4 per maund, the plaintiff would have made his purchase at a less rate making his calculation at the rate of -/9/4 per maund and would not have purchased the said railway materials from defendant 1.

    7. The case put forward in the plaint was not supported in the witness-box. It seems to me that the case of the railway administration is stronger here than it was in Firm Ram Lal Bhikam Chand v. Secretary of State ('37) 24 A.I.R. 1937 All. 400 and Firm Ganga Prasad-Ratan v. Secretary of State ('37) 24 A.I.R. 1937 All. 642. It may also be pointed out that, even if the plaintiff's statement that the rate on the B.B. & C.I. Railway was -/8/4 per maund was true, there was no justification for decreeing the suit for the sum claimed. In the third place, what the Chief Traffic Manager quoted for was "railway material" as is apparent from the letter of 3rd November 1936. The defendant's witness, Shyam Sunder--the delivery clerk at Belanganj--stated that "the railway material rate from Bombay to Belanganj is -/5/2 but it does not apply to scrap iron" and that -/9/4 is the rate for scrap iron for the public. In the receipt which the plaintiff obtained when he booked the consignment in question the goods consigned are described as "old iron scrap." I am also of the opinion that the principle of the decision in Bhagwati Prasad v. B.B. and C.I. Railway ('40) 27 A.I.R. 1940 All. 235 is applicable to the present case. Allowing the application for revision, I set aside the decree of the Court below and dismiss the suit against defendant 1 also with costs throughout.

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    Secretary Of State v. Nawal Kishore
    (Nov 6, 1942)