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Smart Summary

Judgment Summary — Russell, Ag. C.J.

Factual and Procedural Background

The plaintiffs operated a grain shop at Poona. In May 1902 the plaintiffs' agent purchased grain at Wadi and sent it to Poona for sale. The plaintiffs sued the Great Indian Peninsula (G.I.P.) Railway to recover Rs. 655-11-0 as alleged excess amounts charged and received by the Railway at Poona in respect of several parcels of grain sent from Wadi to Poona in June and July 1902, together with interest and damages claimed at Rs. 174-2-9 — total claimed Rs. 829-13-9. The plaint was filed on 10 July 1905.

The specific excess amounts and dates alleged in the plaint were:

  • Rs. 187-5-0 — received 12th July 1902
  • Rs. 62-6-0 — received 16th July 1902
  • Rs. 406-0-0 — received 25th July 1902

A preliminary issue raised by the learned Judge of the Small Cause Court at Poona was whether the suit was not maintainable for want of notice under sections 77 and 140 of Act IX of 1890 (the Indian Railways Act). The defendant (through Mr. Raikes, Advocate General) limited his argument to two points: (a) whether notice was necessary; and (b) whether any notice given was in time.

Legal Issues Presented

  1. Whether the suit was maintainable in the absence of notice under sections 77 and 140 of the Indian Railways Act (i.e., whether notice was necessary).
  2. If notice was necessary, whether the notice relied upon by the plaintiffs had been given within the time and in the manner required by the Act (whether notice was given in time and in compliance with section 140).

Arguments of the Parties

Defendants' Arguments

  • The defendants (G.I.P. Railway), through their counsel, framed their case on two principal contentions: (a) that notice under the Railways Act was necessary for the plaintiffs' claim, and (b) that any notice alleged to have been given was not given in time (or in the required manner).

Plaintiffs' Arguments / Evidence

  • The plaintiffs relied on a course of dealings and on correspondence. They asserted, via a letter produced by the defendant dated 11 August 1903, that an earlier registered letter (No. 103 dated 14 October 1902) had been addressed to the defendant's Agent and acknowledged as received.
  • A witness (Devsi Yersee) stated that letters were sent to the Agent through the Poona Station-Master, and produced a letter dated 24 July 1902 which they said sought refund of the undercharges. The plaintiffs relied on these communications to show that the claim had been preferred in writing within six months.

Table of Precedents Cited

Precedent / Authority Rule or Principle Cited For Application by the Court
Winkfield v. Packington Establishes the principle that if a sender asks at a carrier's office what the charge will be and is told a specific rate by a clerk transacting the business there, the carrier cannot charge more than that rate. The court used this authority to demonstrate that a charge higher than that represented by the carrier's clerk is not "permitted by law" and thus falls within the notion of an "overcharge". The decision supported the view that the present charged amounts were not lawful.
Woodman v. Rio Grande Used as a citation in an encyclopaedia definition for "overcharge" meaning a charge of more than is permitted by law. The court cited this case (via the encyclopaedia) to support the definition of "overcharge" and to frame the nature of the claimed excess charges by the Railway.
Great Indian Peninsula Railway Company v. Chandra Bai Authority cited for the necessity of exact compliance with statutory requirements for service of notices on railway administrators under the Railways Act. The court referenced this case to demonstrate that section 140 requires precise methods of addressing and delivering notices, and that letters routed c/o. a Station-Master (as in the 24 July 1902 letter) do not satisfy the statute's requirements.
Angell on Carrier (text) Textual authority which cites Winkfield v. Packington as still being the law on carriers' representations by clerks. Used as corroborative authority to show the continued legal force of Winkfield and to bolster the court's interpretation of what constitutes an impermissible overcharge.

Court's Reasoning and Analysis

The court proceeded in two main analytical stages corresponding to the two questions raised by the defendants.

1. Whether notice under Section 77 was necessary (and the scope of Section 77)

- The learned Judge of the Small Cause Court had held that section 77 did not apply because some of the challenged amounts were charged and recovered after delivery of the goods, and he interpreted "overcharge" in section 77 to mean an overcharge charged and recovered before delivery. The learned Judge considered it "absurd" that section 77 would apply to overcharges recovered long after delivery.

- The appellate court rejected that approach as inserting words into section 77 that are not present. The court set out section 77 in full and observed that its plain language — "in respect of animals or goods carried by Railway" — is broad. It noted the statutory purpose (to guard against stale claims) and emphasised that the section should be read in its ordinary and plain sense rather than narrowed by an implied temporal limitation not in the text.

- The court supported its interpretation by reference to: (a) the common-law concept of "overcharge" (citing the definition drawn from authorities, including Woodman v. Rio Grande), and (b) carrier-law authorities such as Winkfield v. Packington (via Angell on Carrier), which show that a carrier cannot demand more than the rate represented by its clerk when the sender relies on that representation.

- The court also relied on practical considerations and documentary forms: sanctioned consignment-note forms require freight to be paid previously or at the time of delivery, and section 55 requires payment "on demand." These features, the court said, make the learned Judge's suggested difficulty unlikely to arise in practice.

- Conclusion on this point: the appellate court found the learned Judge's construction of section 77 erroneous and reversed the judgment on this point.

2. Whether notice under Section 140 was given in the required manner and time

- The learned Judge had "assumed (but not held)" that section 77 applied and found that the plaintiff had preferred a written claim in time because a letter of 11 August 1903 (produced by the defendant) stated that an earlier registered letter (No. 103 dated 14 October 1902) had been sent and acknowledged. The learned Judge inferred proof of delivery from the absence of a denial by the defendant in later correspondence.

- The appellate court rejected that inference. It held that a statement in a letter that a prior letter was sent and acknowledged is not proof of the prior letter's posting or delivery. The court observed that the plaintiff could have reasonably produced the registered letter or its receipt, and no satisfactory reason for its nonproduction was offered. The court noted the defendants' explanation that correspondence of 1902 had been destroyed according to company rules, but emphasised that non-production without proof is insufficient.

- The court further examined witness evidence (Devsi Yersee), which referred to letters sent "through the Poona Station-Master." The court observed that the 24 July 1902 letter relied on by the plaintiffs was not addressed in the manner required by section 140 (it was sent c/o the Station-Master) and therefore did not comply with the statutory modes of service of notices. The court reiterated that section 140 prescribes specific methods of serving notices on railway administrations (delivery to the Manager or Agent, leaving it at his office, or forwarding by registered post), and that exact compliance is necessary — a point reinforced by citation of Great Indian Peninsula Railway Company v. Chandra Bai.

- Conclusion on this point: the evidence did not establish that the requirements of section 140 had been satisfied (either as to proper addressee/place of delivery or adequate proof of sending/receipt). Consequently, the learned Judge's finding that notice had been properly given was not supported by sufficient evidence.

Holding and Implications

Holding:

- The appellate court reversed the learned Judge's conclusion that section 77 did not apply (holding that section 77 must be read in its plain terms and covers the circumstance at issue), but on the factual and evidential question of compliance with section 140 the court found that the plaintiffs had not proved that notice had been given in the manner and within the time prescribed by statute. For these reasons the court stated: Application allowed.

- The court directed that each party pay their own costs throughout.

Implications (direct effects stated in the opinion)

  • The Small Cause Court's reasoning on the interpretation of section 77 was held to be incorrect and reversed by the appellate court.
  • On the factual question whether statutory notice (section 140) had been validly given, the appellate court found insufficient evidence of compliance; as a result it allowed the (unnamed) application before it and ordered that each party bear their own costs.
  • The opinion does not elaborate broader legal or policy implications beyond these direct outcomes; it does not purport to lay down any novel wider rule beyond the court's statutory interpretation and factual findings in this case.
Application allowed.
G.B.R

Note: All statements in this summary are drawn exclusively from the provided opinion text and no information has been added beyond that source.

    Agent, G.I.P. Railway Company v. Dewasi Versee

    Russell, Ag. C.J:— In the year 1902 the plaintiffs herein had a grain shop at Poona and the defendants are the G.I.P Railway. During May 1902 the plaintiffs’ agent went to Wadi to buy grain which he sent to Poona for sale there. The plaintiffs sue to recover from the defendants Rs. 655-11-0 and interest thereon as damages amounting to Rs. 174-2-9 in all Rs. 829-13-9. The sum of Rs. 655-11-0 is in the plaint sought to be recovered as the excess amount claimed and received by the Railway Company at Poona in respect of various parcels of grain sent from Wadi to Poona on different dates in June and July 1902, the details of which are set out in the plaint. The dates of the excess amounts being received are as follow:—

    Rs. 187-5-0 received 12th July 1902. Rs. 62-6-0 received 16th July 1902. Rs. 406-0-0 received 25th July 1902. Rs. 655-11-0

    The plaint was filed on 10th July 1905.

    The learned Judge of the Small Cause Court at Poona raised the following preliminary issue. Whether the suit was not maintainable for want of notice under sections 77 and 140 of Act IX of 1890 (the Indian Railways Act)?

    The proper form of this issue would be whether the suit is maintainable in the absence of notice, &c.

    Mr. Raikes, Advocate General, for defendants, said he would argue the two points only.

    (a) Whether notice was necessary?

    (b) Whether notice was given in time?

    Before we deal with these two points it is desirable that we should state shortly what was proved at the hearing as to the fixing of the rates in question.

    It appears that prior to February 1902 the rate for grain and seeds between Wadi and Poona had been 7 annas 10 pies per Railway maund.

    By Circular No. 13, dated 18th February 1902, it was reduced to 4 annas 9 pies from 20th February 1902, But by a subsequent Circular No. 25, dated 14th May 1902, the reduced rate was cancelled and the former rate restored from 1st June 1902. But this subsequent Circular had not been posted or affixed at Wadi Station or made known to the public there or at Poona before the grain in question herein was sent from Wadi to Poona. Nor were the Railway people at Wadi and Poona aware of the subsequent Circular otherwise they would not have entered the reduced rate in the Railway receipts at Wadi and allowed delivery of the grain (except the last consignment Invoice No. 6) to the consignee at Poona on payment of the reduced rate. It was not till the last consignment had reached Poona that the enhanced rate was demanded. Further the plaintiffs’ agent at Wadi inquired of the then goods clerk there what was the rate and was told the reduced rate.

    As to the first question then the learned Judge held that notice as above was not necessary.

    His reasoning is set out in his judgment pages, 17 and 18, as follows:— “The amount recovered by the defendant from the plaintiff on account of the alleged undercharges was charged and recovered, in some cases, not before, but some days after, the goods in respect of which the amount was recovered, were delivered to the plaintiff (the consignee) at their destination. I am of opinion that section 77 of the Railways Act (IX of 1890) does not apply to such a case. The section provides that ‘a person shall not be entitled to a refund of an overcharge in respect of animals or goods carried by Railway or to compensation for the loss, destruction or deterioration of animals or goods delivered to be so carried unless his claim to the refund or compensation has been preferred in writing by him or on his behalf to the Railway Administration within six months from the date of the delivery of the animals or goods for carriage by Railway.’ Having regard to the time from which the period of six months is to be computed, it seems that the ‘overcharge’ referred to in the section means an overcharge charged and recovered before the delivery of the goods to the consignee at their destination, and that it does not include an overcharge which is charged and recovered after the delivery of the goods to the consignee at their destination. Suppose, an amount is charged and recovered on account of undercharges more than six months after the goods were delivered for carriage by Railway would the section apply to such a case? Certainly not. It would be simply absurd to hold that the section would apply to such a case. It thus necessarily follows from this that the ‘overcharge’ referred to in the section does not include an overcharge which is charged and recovered after the goods were delivered to the consignee at their destination.”

    But it appears to us that this is to read into the section words which are not there.

    Section 77 is plain.

    Notification of claims to refunds of overcharges and compensation for losses.

    77. A person shall not be entitled to a refund of an overcharge in respect of animals or goods carried by Railway or to compensation for the loss, destruction or deterioration of animals or goods delivered to be so earned, unless his claim to the refund or compensation has been preferred in writing by him or on his behalf to the railway administration within six months from the date of the delivery of the animals or goods for carriage by railway.

    Section 140 is as follows:—

    Service of notices on railway administrators.

    140. Any notice or other document required or authorized by this Act to be served on a railway administration may be served, in case of a railway administered by the Government or a Native State, on the Manager and, in the case of a railway administered by a railway company, on the Agent in India of the railway company—

    (a) by delivering the notice or other document to the Manager or Agent, or

    (b) by leaving it at his office, or

    (c) by forwarding it by post in a prepaid letter addressed to the Manager or Agent at his office and registered under Part III of the Indain Post Office Act, 1866.

    In the American and English Encyclopoedia “overcharge” is defined as “a charge of more than is permitted by law,” citing Woodman v. Rio Grande(1). That a charge such as the present is not “permitted by law,” is apparent from case of Winkfield v. Packington(2). There it was held that if before sending goods by a carrier the sender applies at his wharf to know at what price certain goods will be carried and he is told by a clerk who is doing the business there 2s. 6d., per cwt., and on the faith of this he sends the goods the carrier cannot charge more; although it be proved that the carrier had previously ordered his clerks to charge all goods according to a printed book of rates in which 3s. 6d., per cwt., was set down for the goods of the sort in question, Lord Tenterden's remarks in that case are very strong. They are:—

    “If a person goes to the office of a Carrier, and asks what a thing will be done for, and he is told by a clerk or servant who is transacting the business there, that it will be done for a certain sum, the master can charge no more.”

    This case is cited in Angell on Carrier, section 127, as being still the law.

    Again the words in section 77 “in respect of animals or goods” are as wide as they can be.

    Further as a matter of practice the difficulty suggested by the learned Judge is not likely to arise, for in the Forms of consign ment-note sanctioned by the Governor-General (see page 272, Bayley on the Indian Railways Act) “the freight on all goods must be paid either previously or at the time of delivery” and it is in the highest degree improbable that a Railway Company if freight were not paid previously or on delivery would allow anything like so long as six months to elapse before they demanded payment of the freight. And by section 55 of the Act payment must be made “on demand.”

    In our opinion we must read section 77 in its plain and ordinary sense and bearing in mind the mischief at which it was aimed, viz., stale claims against Railway Companys in India. We, therefore, think the judgment on this point is wrong and should be reversed.

    The next question is: was notice under section 140 in fact given or rather seeing that we are dealing with this case under section 25 of the Provincial Small Cause Courts Act, was there evidence upon the consideration of which the learned Judge was justified in finding that due notice had been given?

    The learned Judge deals with this part of the case as follows:—

    Assuming (but not holding) that the section does apply to a case like the present, the plaintiff in the present case did prefer his claim in writing to the defendant's Agent at Bombay by registered post within six months from the date of the delivery of the goods for carriage by Railway, as will be seen from the plaintiff's letter to the General Traffic Manager dated 11th August 1903 and produced by the defendant. In paragraph 1 of that letter,” it is distinctly stated that the plaintiff did prefer his claim to the Agent by a registered letter No. 103, dated 14th October 1902. This registered letter as well as some other correspondence relating to the subject-matter of this suit is not forthcoming. The plaintiff has tried his best to procure their production. But the defendant's servants, in their evidence, state that the correspondence of 1902 has been destroyed according to the rules of the defendant Company. In none of the subsequent correspondence of 1903 does the receipt of the said registered letter of 14th October 1902 appear to have been denied. The goods in respect of which the undercharges were recovered were delivered at the Wadi Station to the defendant Company in the months of June and July 1902, as will be seen from the Invoices produced by the plaintiff. The above mentioned registered letter was sent to the Agent within six months from the date of the delivery of the goods to the defendant Company.

    The passage in the letter, Exhibit O, to which he refers is as follows:—

    “I respectfully beg to point out that you are entirely wrong in stating my claim was not preferred within six months of the date of delivery, although (sic) my first registered letter No. 103 was addressed to your Agent dated 14th October 1902 and for which he acknowledged receipt.” The learned Judge has inferred from the fact of there being no denial by the defendants of that statement that therefore the fact of the delivery of the letter of 14th October 1902 is proved.

    But in our opinion this is not so. The statement of a fact in a letter cannot be accepted as proof of the fact itself. Nothing could have been easier than for the plaintiff then to prove that such a letter had been written and posted. The alleged receipt for the letter is not produced and no reason given for its nonproduction. On the contrary Devsi Yersee says: “We then sent letters to the Agent through the Poona Station-Master for refund of the amount.” The letter he refers to is dated 24th July 1902 and runs thus:—

    The (Station Master)

    G.I.P Railway,

    Poona.

    Dear Sir,

    In reply to your letter of the 18th July I beg to state that you are not entitled to the undercharges mentioned in your letter No. 4709 under the 55th Gaba of the Railway Act 9 of 1890. You refer to empower you to demand. The same in any way. I shall only pay the sum under protest and if you accept them so.

    Yours sincerely,

    Sha Narsi Varjung,

    (in Gujarati).

    The witness is evidently trying to make out that this is the letter sent in compliance with sections 77 and 140. Of course it is not, for section 140 requires letters to be addressed as therein set forth. The witness does not refer to the alleged letter of 14th October 1902 at all.

    Further, even assuming the learned Judge was right in the view he took of the letter of 11th August 1903 still that does not show that all the requirements of section 140 were complied with. It does not say that the letter was delivered to the Agent at his office as required by section 140; non-constat that it was not addressed to him c/o., the Station-Master at Poona as the letter of 24th July 1902 had been, which was not in compliance with section 140 exact compliance with which is necessary: Great Indian Peninsula Railway Company v. Chandra Bai.

    For the above reasons (it not being necessary to go into the other issues decided by the learned Judge) we would allow this application. But looking at the extreme hardship of the case upon the plaintiff, we direct that each party do pay their own costs throughout.

    Application allowed.
    G.B.R
    Indian Railways Act)
    Use AI to get other relevant cases.

    Comments

    Agent, G.I.P. Railway Company v. Dewasi Versee
    (Jul 16, 1907)