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citation codes
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  • section 151, 152 and 161 of the Indian Contract Act, 1872. Clause (2) of that section
  • sections 151, 152 and 161 of the Indian Contract Act. Section 151
  • Articles 30 and 31 to Schedule I of the Indian Limitation Act.
  • Article 149 or Article 115 of the Limitation Act,
  • Sections 72 to 76 of the Indian Railways Act
  • Sections 151, 152 and 161 of the Contract Act
  • section 161 of the Indian Contract Act
  • Indian Contract Act, sections 151
  • provision similar to Article 31
  • section 151. Section 161
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • section 151, 152 and 161 of the Indian Contract Act, 1872. Clause (2) of that section
  • sections 151, 152 and 161 of the Indian Contract Act. Section 151
  • Articles 30 and 31 to Schedule I of the Indian Limitation Act.
  • Article 149 or Article 115 of the Limitation Act,
  • Sections 72 to 76 of the Indian Railways Act
  • Sections 151, 152 and 161 of the Contract Act
  • section 161 of the Indian Contract Act
  • Indian Contract Act, sections 151
  • provision similar to Article 31
  • section 151. Section 161
Smart Summary

Judgment Summary — Appeal from Patna District Court (1924)

Factual and Procedural Background

The plaintiff was Mali Ram, a cloth merchant trading as the firm Ganesh Das Biseshur Lal at Mokameh, Patna district. In November 1920 a Bombay firm consigned to the plaintiff a bale of cloth (value claimed Rs. 975-8-6) to be delivered at Mokameh. The bale was never delivered to the plaintiff.

The plaintiff sued the East Indian Railway Company and the Great Indian Peninsular Railway for damages for nondelivery. The Great Indian Peninsular Railway's pleaded position (as recorded in the opinion) was that it handed the goods over to the East Indian Railway at Manikpur Junction; that allegation appears to have gone unchallenged.

The Subordinate Judge of Patna dismissed the suit (judgment dated 24 April 1923). The District Judge of Patna confirmed that judgment (order dated 4 April 1924). This appeal (to the Court whose opinion is reproduced) challenges the District Judge's decision, principally so far as it concerns the East Indian Railway Company.

Legal Issues Presented

  1. Whether the East Indian Railway Company's written statement — which relied generally on "risk note B" without alleging or proving loss or specifying the portion of the risk note relied upon — constituted a valid defence to the plaintiff's claim for nondelivery.
  2. What is the proper allocation of burden of proof in cases of nondelivery where a railway relies on risk note B: specifically, whether the railway must plead and prove loss, destruction or deterioration (and the circumstances), and whether the onus then shifts to the claimant to prove wilful neglect.
  3. Whether risk note B, as employed by the railway companies, covers cases of non-delivery, misdelivery or detention, or whether it is limited to loss, destruction or deterioration as those terms are used in the Indian Contract Act.

Arguments of the Parties

Plaintiff's Arguments

  • The plaint sought recovery for the undelivered bale: Rs. 975-8-6 for the price of the goods, Rs. 100 for loss of profits, and Rs. 57-7-6 for interest (5 months 10 days).
  • The plaintiff proved the value of the undelivered bale (Rs. 975-8-6) satisfactorily, according to the opinion.

Defendant (East Indian Railway Company) Arguments

  • The East Indian Railway Company relied upon the reduced rate "risk note B", asserting carriage at owner's risk under that note.
  • The Company did not admit loss; it did not identify the specific portion of risk note B upon which it relied; it denied neglect and asserted there was no contract to carry within a specified time so as to be liable for loss of profits.
  • Practically, on the pleadings the Company's position was to rely solely upon the form risk note B without adducing evidence of loss or the circumstances of any loss while the goods were in the Company's custody.

Co-defendant (Great Indian Peninsular Railway) — limited account

  • The Great Indian Peninsular Railway's written statement (as recorded) stated that it had handed the consignment to the East Indian Railway Company; that allegation was not denied by the East Indian Railway and appears to have stood as an admission.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Great Indian Peninsular Railway Company v. Jitan Ram Cited earlier in the opinion in relation to the historical position on whether a railway's admission of loss shifts the onus. Referred to as an earlier decision with which the present Bench has prior association; used to explain a line of authorities but not applied to alter the Court's present approach.
East Indian Railway Company v. Jogpai Singh Cited among authorities indicating that the Company must show, so far as possible, how loss occurred while in its custody. Referenced as part of a body of authority supporting the view that mere admission of loss is insufficient — the Company must adduce evidence of how the goods disappeared.
Ganesh Lal v. East Indian Railway Limited Cited in the same list as authority on proof required from railway companies relying on risk note B. Used as part of the set of decisions indicating a requirement on the Company to show the manner of loss; cited to indicate judicial treatment on this point.
Gopiram Behariram v. Agents East Indian Railway Listed among authorities concerning proof by railway companies in loss-of-goods cases. Referenced as supporting material in the survey of authority; no distinct separate application beyond citation.
Barada Chandra Dhar v. Assam Bengal Railway Company Included in the group of cases dealing with railways' obligations and proofs of loss. Referred to as part of the jurisprudential background relied on in discussing burden and proof; no novel application recorded.
Bombay Baroda and Central Indian Railway Company, Limited v. Nattaji Pratapchand Firm One of the decisions listed as dealing with similar issues regarding loss and proof. Included in the catalogue of authorities used to illustrate the state of the law; opinion does not extract a separate rule beyond that context.
East Indian Railway Company v. Tota Ram, Pirbhu Dayal Cited in connection with authorities on carriers' responsibilities and proof. Referenced among cases bearing on the allocation of burden and the proof required for relying on contractual exemptions such as risk note B.
East Indian Railway Company v. Brij Kishore Cited among authorities on loss and the railway's proof obligations. Used as part of the court's survey of precedent; no discrete application beyond supporting the general proposition about proof.
Great Indian Peninsular Railway v. Kupy Behari Lal Sharma Listed as part of the case-law dealing with railway liability and proof. Referred to as supporting material in assessing the trend of authority; not applied in a fact-specific analysis beyond citation.
East Indian Company v. Kali Char an Ram Prasad Cited (per Jwala Prasad, J.) among the authorities concerned with liability and proof. Referenced in the survey of authorities; the opinion cites it as part of the state of the law but does not set out a distinct holding attributed to it.
Great Indian Peninsular Railway Company v. Jital Ram Nirmal Ram Included as judicial authority in the list of cases concerning railway liability under similar factual scenarios. Listed to show prior treatments of the subject; used to indicate differing views across judgments.
East Indian Railway Company and Great Indian Peninsular Railway Company v. Sukdeo Das and Gobardhan Das Cited among decisions bearing on carriers' liabilities and exemptions. Referenced as part of the body of authority; the court used it in the general survey of cases addressing proof and exceptions.
East Indian Railway Company v. Mohan Lal Panna Lal Included in the list of relevant authorities on proof and railway liability. Referred to as part of the jurisprudential background; employed to illustrate existing decisions on the topic.
Jamnadhar Baldevdas Firm v. Burma Railway Company Limited Listed among cases dealing with carriers and consigned goods. Included in the opinion's survey as one of the cases that bear on the present issue.
Daudbhai v. Great Indian Peninsular Railway Company One of the decisions cited in the catalogue of authorities. Referred to as part of the historical body of case-law; no detailed separate application in this opinion.
H. and C. Smith and Company, Limited v. Great Western Railway Company Cited for the proposition that the form of the risk note in that case expressly distinguished loss/destruction/deterioration from non-delivery and misdelivery. Used to illustrate that some risk-notes explicitly cover non-delivery/misdelivery, and to support the court's point that risk note B (in the present matter) does not contain such wording and must be strictly construed.
East Indian Railway v. Jagpat Singh Cited (in para.16) as a recent authority favorable to the court's view on the scope of risk note B. Referenced as part of the trend of recent decisions in other High Courts that support the view adopted in this judgment.
Gopi Ram Behary Ram v. Agent, East Indian Railway Cited as one of the recent decisions aligning with the view that risk note B does not cover non-delivery. Used by the court to show that contemporary decisions lean in favour of the position taken in this opinion.
Badri Prasad v. Great Indian Peninsular Railway Cited among decisions supporting the Court's stance on the limited scope of risk note B. Listed to demonstrate a pattern of case-law favoring the judgment's conclusions.
Mohan Singh v. Great Indian Peninsular Railway Cited as part of the body of recent decisions reflected in para.16. Referenced by the Court as illustrative of the prevailing trend of authority.
East Indian Railway v. Firm Mulcha Lal Cited among the recent decisions mentioned by the Court. Used to evidence the trend in other High Courts that supports the Court's conclusions.
Ghelabhuai Punsi v. East Indian Railway Company Cited as another recent decision favouring the view taken by the Court. Referenced to show wider judicial support for the reasoning adopted here.

Court's Reasoning and Analysis

The Court's analysis proceeds along two related strands: (i) assessment of the sufficiency of the East Indian Railway Company's pleading and the evidentiary obligation of a railway relying on risk note B; and (ii) the legal scope of risk note B with respect to non-delivery.

1. Pleading and proof under risk note B:

  • The East Indian Railway Company's written statement did not admit loss, did not say in what respect it claimed exemption under risk note B, and called no evidence to show any loss. The Company merely relied upon the risk note without specifying the part of the note relied on.
  • The Court found such a general reliance (without alleging or proving loss or the circumstances thereof) to be an insufficient pleading and not a defence to the suit.
  • The Court explains that the modern trend of authority indicates that where a railway relies on risk note B it must go beyond a bare admission of loss: it must prove, so far as possible, how the loss occurred while the goods were in its custody. Only after the railway proves loss/destruction/deterioration in the terms contemplated by the risk note does the onus shift to the claimant to show that the loss was due to wilful neglect.
  • The opinion records that there is judicial divergence on this point and that some judges propose to refer the question to a Full Bench; the Court therefore refrains from speaking exhaustively on a matter already much litigated and partly unsettled in earlier decisions.

2. Scope of risk note B (non-delivery vs. loss/destruction/deterioration):

  • Jwala Prasad, A.C.J., in his concurring opinion, sets out the statutory framework: Sections 72–76 of the Indian Railways Act read with sections 151, 152 and 161 of the Indian Contract Act, 1872 (as incorporated by section 72) govern the railway's responsibilities as a bailee.
  • The Court emphasises that risk note B is an exception to the general responsibility of a railway as bailee and must be strictly proved and strictly construed. The railway must both prove execution of the risk note and that the factual circumstances bringing the case within the note exist.
  • The Court holds that risk note B, in its form as used by the East Indian Railway in this case, protects the railway against loss, destruction or deterioration (as those expressions are used in sections 151 and 152 of the Contract Act) and does not, in terms of that note, extend to cases of non-delivery, misdelivery or detention. The Court notes that in some other cases (e.g., H. & C. Smith v. Great Western Railway) the risk note expressly included non-delivery and misdelivery, but risk note B in the present matter does not.
  • The Court also invokes the distinction recognised in the Limitation Act (Articles 30 and 31 to Schedule I) between non-delivery and loss/destruction/deterioration to reinforce the textual point that the risk note must be read strictly and cannot be expanded by judicial implication to cover non-delivery when it does not do so on its face.

3. Application to facts:

  • On the facts the plaintiff proved the value of the undelivered bale (Rs. 975-8-6). The East Indian Railway did not prove the loss or the circumstances of any loss and did not make a proper pleading of the specific exemption within risk note B.
  • Consequently, the Court held that the defence as pleaded and placed on record by the East Indian Railway was no defence; the appeal should be allowed against the East Indian Railway.

Holding and Implications

Holding: The Court allowed the appeal against the East Indian Railway Company, set aside the judgments of the Subordinate Judge (24 April 1923) and the District Judge (4 April 1924), and decreed the suit in favour of the plaintiff for the value of the undelivered goods.

The decree awarded to the plaintiff is:

  • Rs. 975-8-6 (price of the undelivered bale), plus interest at six percent per annum from the date of the decree;
  • The appellant (plaintiff before the High Court) was to recover costs throughout.

Implications (as discussed in the opinion):

  • The decision reinforces that a railway relying on risk note B cannot rest on a bare invocation of the note; it must prove both the execution of the note and the loss, destruction or deterioration in terms contemplated by that note before it can claim exemption from ordinary bailee liability.
  • The Court holds that risk note B (in the form used here) does not cover non-delivery, misdelivery or detention; those concepts are distinct from "loss, destruction or deterioration" and risk note B must be construed accordingly.
  • The opinion records that there is divergence in the case law across Courts, but also notes a trend in recent decisions (in other High Courts) favouring the view adopted here. The Court references an impending consideration by a Full Bench (in a reported matter) and therefore refrains from attempting to finally settle every aspect of the contested legal question in the abstract.
  • The direct, concrete effect is the setting aside of the earlier judgments and the granting of the decree for the specified amount and interest. The opinion does not purport to lay down an exhaustive rule beyond its textual and precedential analysis; it frames and applies principles to the facts before the Court.

This summary is derived exclusively from the text of the provided opinion. No facts, arguments, or holdings beyond those contained in that text have been added.

    Ganesh Dass Bisheshwar Lal v. East Indian Railway Company

    Bucknill, J.:— This was an appeal from a decision of the District Judge of Patna dated the 4th April, 1924, confirming a judgment of the Subordinate Judge of Patna dated the 24th April, 1923.

    The facts in the case were of simple character. The plaintiff was one Mali Ram who carried on the business of a cloth merchant as a firm known as Ganesh Das Biseshur Lal at Mokameh in the Patna district. In November 1920 a Bombay firm consigned to the plaintiff to Mokameh a bale of cloth valued at Rs. 975-8-6. This bale was never delivered to the plaintiff and accordingly, after several vain attempts to obtain some satisfaction from the Railway Companies which carried the goods, the plaintiff brought a suit against the East Indian and the Great. Indian Peninsular Railway (by which the bale had presumably been carried) claiming damages for nondelivery of the cloth. With the Great Indian Peninsular Railway we are not concerned; as it seems to be common ground that the bale of goods was handed over to the East Indian Railway at a place called Manikpur Junction. The Subordinate Judge dismissed the suit and on appeal the District Judge upheld his judgment. It is from this decision of the District Judge that this present appeal has come before this Court.

    Now, it will be observed that the written statement which was filed by the East Indian Railway Company was of (what is in my experience) a most unusual character. It will be noticed that the plaintiff in his plaint did not allege that the defendant had Host the goods; presumably he was quite in the dark as to what had happened to the bale; all that he could say was that the goods had not been delivered to him. The defence of the Great Indian Peninsular Railway was as I have mentioned that they had handed over the goods to their co-defendants (the East Indian Railway); this allegation in the written statement of the Great Indian Peninsular Railway was not denied by their co-defendant and seems to have been admitted. The defence of the East Indian Railway seems to me to disclose on the pleadings no defence to the suit. Their defence was in effect that the consignment was booked at owner's risk in consideration of a reduced rate of freight in terms of the well-known risk note form B. The despatch of the bale of goods was admitted but the East Indian Railway Company did not allege in what respect they claim to be exempted under the provisions of the risk note B. They did not admit that they had lost the goods; they alleged further that as there was no contract to carry the goods within a specified time they were not liable for any loss of profits to the plaintiff; they denied that there was any neglect on their part in the non-delivery of the goods.

    Now, I do not think that I have yet seen a written statement quite of this character; in the numerous cases with which I have had to deal connected with the claims against railway companies for damages due to goods not having been delivered, I have, to the best of my recollection, always observed either that the plaintiffs pleaded loss or that the railway company admitted loss and, in all germane cases which I can remember, the question has therefore turned upon the liability of the company in view of the exemptions contained in the risk note B. In the present pleadings there is not even an allegation of loss either by the plaintiff or the defendant company.

    In this case the defendant company has called no evidence to shew the loss and the utmost which could be urged by the learned Advocate who appeared for the defendant company was that it might perhaps be implied that the defendants tacitly admitted having lost the goods. I do not, however, think that any such admission can be implied either from the pleadings or from the conduct of the case. From the terms of the risk note B it is clear that there might be a variety of circumstances under which the defendant company might not be liable; but for the company merely to state that it simply relies upon the terms of the risk note B without even mentioning upon what portion of the elaborate risk note it relies is to my mind no proper pleading at all and is, in my view, no defence to the suit, I should, however, in this connection, mention a point which is I think of no little importance. It is the fact that in this Court it has been at one time held that, if a Railway Company relying on risk note B simply admits loss in their pleadings, the onus was then upon the plaintiff to prove that loss was due to wilful neglect by or on behalf of the Company. [See Great Indian Peninsular Railway Company v. Jitan Ram*]. But there is, since that decision, a considerable body of authority which indicates that the more recent view is that it is not sufficient for the Company merely to admit the loss but that the Company must prove, so far as is possible, in some way in what fashion the loss of the goods whilst in its hands has occurred. It would seem from an unreported case [Second Appeal no. 1289 of 1923] that Das and Adami, JJ., propose to refer this question to a Full Bench of this Court; this would appear to be so from the judgment of their Lordships dated the 7th July last. It is, therefore, undesirable that I should say anything further on this matter especially as I was associated with Mullick, J., in the case of Great Indian Peninsular Railway Company v. Jitan Ram* which I have quoted above. I have only mentioned this question because it will be at once observed that it is now a moot point whether, even if the defendant company had admitted loss in their pleadings, such an admission would have been a good answer to the plaintiff's suit unless such admission was coupled by evidence adduced by the Company of a character showing, so far as possible, how the goods had disappeared whilst in the Company's custody [vide East Indian Railway Company v. Jogpai Singh, per Suhrawardy and Page, JJ., Ganesh Lal v. East Indian Railway Limited, per Suhrawardy and Chotzner, JJ., Gopiram Behariram v. Agents East Indian Railway, per Chatterjea and Cuming, JJ., Barada Chandra Dhar v. Assam Bengal Railway Company, per Suhrawardy and Mukherji, JJ., Bombay Baroda and Central Indian Railway Company, Limited v. Nattaji Pratapchand Firm, per Ramesam, J., East Indian Railway Company v. Tota Ram, Pirbhu Dayal, per Sulaiman and Daniels, JJ., East Indian Railway Company v. Brij Kishore, p. Sulaiman and Daniels, JJ., Great Indian Peninsular Railway v. Kupy Behari Lal Sharma, per Daniels, J., East Indian Company v. Kali Char an Ram Prasad, per Jwala Prasad, J., Great Indian Peninsular Railway Company v. Jital Ram Nirmal Ram, per Jwala Prasad, J., East Indian Railway Company and Great Indian Peninsular Railway Company v. Sukdeo Das and Gobardhan Das, per Foster, J., East Indian Railway Company v. Mohan Lal Panna Lal, per Zafar Ali, J., Jamnadhar Baldevdas Firm v. Burma Railway Company Limited, per Robinson, C.J, Daudbhai v. Great Indian Peninsular Railway Company, per Dhobley, A.J.C].

    In the present appeal it will be seen that the plaintiff's case is really far stronger than if the defendant company had admitted loss in its written statement. In this appeal the defendant company had done nothing beyond, as it were, throwing at the plaintiff the risk note B and telling him to make the best of it. This appears to me to be no pleading and no defence.

    Under those circumstances I think this appeal should be allowed as against the East Indian Railway Company and that the judgment of the Subordinate Judge of the 24th April, 1923, and that of the District Judge, dated the 4th April, 1924, should be set aside.

    As for the amount which the plaintiff claimed it should be observed that in his plaint he claimed the following sums:—

    (a) Rs. 975-8-6 for price of the undelivered goods;

    (b) Rs. 100-0-0 damages for loss of profits on the cloth; and

    (c) Rs. 57-7-6 interest for 5 months and 10 days.

    The defendant company denied that it was liable for any loss of profits, did not admit the value of the goods and submitted that the plaintiff was not entitled to any interest. The plaintiff proved quite satisfactorily that the value of the bale of cloth not delivered to him was as claimed, namely Rs. 975-8-6: and he is entitled to recover this sum. He did not, however, prove at all clearly any loss of profit and I do not; think he is entitled to recover any sum under this heading. I do not see how he can claim any interest save that he will be entitled to recover six per cent, interest on the decretal amount from the date of the decree. The result will be that the judgments of both the lower Courts will be set aside and the suit decreed in favour of the plaintiff for Rs. 975-8-6 with interest at 6 per cent, from the date of the decree. The appellant will recover his costs throughout.

    Jwala Prasad, A.C.J:— I entirely agree. I had occasion to deal with a similar point in the case of East Indian Railway Company v. Kali Char an Ram Prasad Since then I have had the advantage of knowing the views both for and against, and all the cases bearing upon the subject were placed before us. After careful consideration of the criticisms, against the view taken by me in the aforesaid well as those that have been advanced in support of my view I find that I am confirmed in my opinion expressed in that case. I do not propose to go over the grounds again upon which based my decision in that case. It seems to me that the point can be simplified. Sections 72 to 76 of the Indian Railways Act deal with the responsibility of the Railway Company in the matter of the carriage of goods. Clause (1) of section 72 makes the railway company liable as bailees under section 151, 152 and 161 of the Indian Contract Act, 1872. Clause (2) of that section forbids any limitation of that responsibility except as provided therein. One of those provisos is that the responsibility of the company can be limited by agreement in writing signed by or on behalf of the person sending or delivering the goods to the railway administration. Risk note B was introduced by the railway company 1 in order to define and describe the limited responsibility of the company with regard to the goods conveyed by them at reduced rates. Generally speaking the carriage of goods under this risk note is said to be at the owner's risk. Under the risk-note the consignor agrees and undertakes to hold the railway administration and all other railway administrations working in connection therewith and all other transport agents or carriers employed by them respectively over whose railways or by or through those transport agency or agencies the said goods and animals may be carried in transit

    “harmless and free from all responsibility for any loss, destruction, or deterioration of, or damage to, the said consignment, from any cause whatever except for the loss of a complete consignment or of one or more complete packages forming part of a consignment due either to the wilful neglect of the Railway Administration, or to theft by or to the wilful neglect of its servants, transport agents, or carriers employed by them before, during and after transit……,……………..provided the Term ‘wilful neglect’ be not held to include fire, robbery from a running train or any other unforeseen event or accident.”

    This agreement absolving the railway company from the liability under certain circumstances set forth in the risk note is an exception to the general liability of the railway company as a bailee under sections 151, 152 and 161 of the Indian Contract Act. Section 151 requires the bailee to take as much care of the goods bailed to him as a man of ordinary prudence would in similar circumstances take of his own goods. Section 152 makes the railway company responsible as bailee for the loss, destruction, or deterioration of the thing bailed unless it has taken the amount of care described in section 151. Section 161 makes the Railway Company responsible as bailee for the delivery and tendering at the proper time to the bailor of the goods bailed, failing which the company is liable to the bailor for any loss, destruction or deterioration; The risk, note is an exception, to the ordinary responsibility of the company for the loss, destruction or deterioration of the goods consigned. As an exception to the general responsibility the risk note must be proved by the railway company to have been duly executed. It must also be proved that the circumstances under which the exemption from the ordinary responsibility is claimed exist in the case. In other words, the railway company must prove that the goods consigned were lost, destroyed or deteriorated before they can take advantage of the agreement contained in the note it is not sufficient for the railway company to plead the execution of the risk note or to plead the loss, destruction or deterioration, but the railway company must prove that there was loss, destruction or deterioration such as is contemplated in the agreement set forth in the risk note. Unless this is primarily proved the ordinary responsibility of the railway company as bailee under sections 151, 152 and 161 does not cease. The object of this requirement for the railway company to prove loss, destruction or deterioration is that the consignor will then be in a position to know how his goods were dealt with and that the railway company exercised primarily the ordinary care that is required of it as a bailee. It is only after this is established by the railway company that it can plead exemption from the liability for the loss, destruction or deterioration under risk note B unless the claimant proves that the loss, destruction or deterioration was due to wilful neglect on the part of the railway company. To put it shortly in a case of claim against a railway company based on non-delivery of the goods consigned it is in the first instance for the company to plead and prove loss, destruction or deterioration and when this is done then the onus shifts upon the claimant to shew that the loss, destruction or deterioration was due to the wilful negligence of the company. The agreement in the risk note is an exception to the general principle governing the responsibility of the railway company as common carriers and bailees. The railway company relying upon the agreement as an exception to the general rule must prove the conditions under which the agreement would apply, that is, they must prove the loss, destruction or deterioration of the goods in order to exonerate themselves from the liability.

    Now risk note B to my mind does not cover the case of non-delivery. Sections 151, 152 and 161 of the Contract Act deal with the case of loss, destruction or deterioration and the risk note protects the railway company from loss, destruction or deterioration as used in the Indian Contract Act, sections 151 and 152. The case of non-delivery comes under section 161 of the Indian Contract Act which says that a bailee is bound to deliver or to tender at a proper time and place the goods bailed. If this is not done thereafter their responsibility arises for loss, destruction or deterioration. Now the words “loss, destruction or deterioration” are not wide enough to cover the case of non-delivery, misdelivery, detention, etc. These last words are expressly stated in the risk note in the case of H. and C. Smith and Company, Limited v. Great Western Railway Company referred to and relied upon by Mullick, J., in the case of Great Indian Peninsular Railway Company v. Jitan Ram Nirmal Ram. The risk note form in that case clearly shews that non-delivery and misdelivrey are quite different from loss, destruction or deterioration. The risk note must be construed strictly and if for some reason the legislature did not think it proper to include cases of non-delivery or misdelivery or detention in spite of the words having been used in section 161 of the Indian Contract Act and in spite of those words being found in the risk note referred to in H. and C. Smith and Company, Limited v. Great Western Railway Company we cannot add those words to the section in order to amplify the scope of it and to limit the liability of the railway company with regard to goods consigned to them. Now the difference between non-delivery on the one hand and loss, destruction or deterioration on the other has been recognized in Articles 30 and 31 to Schedule I of the Indian Limitation Act. It was after careful consideration that Article 30 was added. Before that, provision similar to Article 31 only existed which related only to loss, destruction or deterioration. Questions were then raised as to whether the case of non-delivery would come under that Article or under Article 149 or Article 115 of the Limitation Act, the latter being applicable to cases where there is no express provision in the Act. It is with a view to set at rest the questions raised that Article 30 was subsequently added to the Limitation Act. In spite of that the word non-delivery, mis-delivery or detention was not added to risk note B. This view seems to have been taken by Das and Adami, JJ., in S.A no. 1289 of 1923, and I entirely agree with the reasons given by Das, J., in his judgment.

    There seems to be a sharp divergence in the decisions of this Court as well as of the other High Courts. The trend of the recent decisions of the other High Courts, however, notably of the Calcutta High Court, seems to be in favour of the view taken by me [vide East Indian Railway v. Jagpat Singh, Gopi Ram Behary Ram v. Agent, East Indian Railway, Ganesh Lal v. East Indian Railway, Badri Prasad v. Great Indian Peninsular Railway, Mohan Singh v. Great Indian Peninsular Railway, East Indian Railway v. Firm Mulcha Lal and Ghelabhuai Punsi v. East Indian Railway Company]. All the decisions for and against have been summarised in VII Pat. L.T pages 77n to 86n.

    I have, therefore, no hesitation in agreeing with the decision delivered by my learned brother and I would therefore allow the appeal.

    Appeal allowed.

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    Comments

    Ganesh Dass Bisheshwar Lal v. East Indian Railway Company
    (Jul 29, 1926)