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Annamalai Chettiar v. The Union Of India, Rep, By General Manager, Northern Railway

Madras High Court
Apr 1, 1981
Smart Summary (Beta)

Factual and Procedural Background

The appellant (plaintiff in O.S. No. 220 of 1972, Sub Court, Thanjavur) booked 100 bags of green gram at Boodhalur railway station (Southern Railway) on 10 May 1970 to be transported to Naya Bazar, New Delhi (Northern Railway) under railway receipt No. A.073860. The consignment reached the destination on 22 June 1970. The consignee in New Delhi refused delivery because the bags were damaged. The appellant arranged for delivery to Messrs. Musadilal after assessment of damage to 74 bags, and a certificate of that assessment was issued. The appellant sued the respondent (Union of India, represented by the General Manager, Northern Railway) in O.S. No. 220 of 1975 before the Sub Court, Thanjavur, claiming Rs. 7,265 for damages alleged to have resulted from the respondent's negligence.

The respondent denied negligence and alleged that the claimed damages were excessive. In an additional written statement the respondent pleaded that the Sub Court, Thanjavur, lacked territorial jurisdiction because the alleged negligence was that of the Southern Railway (which was not made a party) and the respondent (Northern Railway) had no office or place of business within the jurisdiction of the Sub Court, Thanjavur. The appellant replied that part of the cause of action arose at Boodhalur (within Thanjavur jurisdiction) and that the respondent's jurisdictional objection was belated.

The Subordinate Judge, Thanjavur, found for the appellant on both liability and jurisdiction under S.20(c) of the Civil Procedure Code (C.P.C.), and decreed the suit. The respondent appealed (A.S. No. 65 of 1979) to the District Court, Thanjavur, raising only the jurisdiction point. The District Judge accepted the respondent's contention, vacated the decree, and directed return of the plaint for presentation to the proper court. The correctness of that order was the subject of the present appeal.

Legal Issues Presented

  1. Whether the Sub Court, Thanjavur, had territorial jurisdiction to entertain a suit for compensation against the Union of India (Northern Railway) where part of the cause of action (booking of goods) occurred at Boodhalur within Thanjavur but the alleged damage occurred on, or at the destination within, the Northern Railway.
  2. Whether S.20(c) of the Civil Procedure Code and S.80 of the Indian Railways Act can both govern the territorial jurisdiction of courts for suits claiming compensation against railways, i.e., whether S.20(c) C.P.C. can be invoked notwithstanding the special provisions of S.80 of the Railways Act.
  3. Whether the objection to jurisdiction raised in the additional written statement and as an issue during trial was timely and could be relied upon by the respondent.

Arguments of the Parties

Appellant's Arguments

  • Under S.20(c) C.P.C., part of the cause of action arose at Boodhalur (within Sub Court, Thanjavur's jurisdiction) because the goods were booked there; therefore the suit was maintainable in that court.
  • S.20(c) C.P.C. and S.80 of the Indian Railways Act can co-exist; both can be given effect in determining territorial jurisdiction for such suits (relying on Assam Cold Storage Co. v. Union of India).
  • An objection to jurisdiction should not be permitted unless it resulted in a consequent failure of justice; the appellant argued the respondent's objection was belated or should not be allowed now.

Respondent's Arguments

  • S.20 C.P.C. is a general provision about territorial limits, but S.80 of the Indian Railways Act is a special, exhaustive provision that governs suits for compensation against railways; the provisions of S.80 must prevail for suits against railway administrations.
  • The suit had not been instituted in accordance with S.80 (i.e., against the Southern Railway or in a court designated by S.80 where the damage occurred or the destination lies), so the Sub Court, Thanjavur, lacked jurisdiction to entertain the suit as framed.
  • The jurisdictional objection was raised at the earliest point — in the additional written statement — and an issue on jurisdiction was framed and tried; it was therefore timely and cannot be now characterized as belated.
  • The respondent relied on earlier decisions addressing S.80's operation (including Union of India v. G. Swaminatha Mudaliar & Sons and Union of India v. C.R. Prabhanna & Sons) to support this position.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Assam Cold Storage Co. v. Union of India Relied upon by the appellant to support the proposition that S.20 C.P.C. and S.80 of the Railways Act can co-exist for determining territorial jurisdiction. The Court declined to apply this decision to the present case, stating it disagreed with its view and explaining that S.80 of the Railways Act is a special, self-contained code which excludes concurrent application of S.20 C.P.C. for suits claiming compensation against railways.
Union of India represented through its General Manager, North Eastern Rly. v. G. Swaminatha Mudaliar and Sons (variously cited) Cited by the respondent to show that where the Southern Railway (or other relevant administration) is not made a party, a court at a station where goods were delivered is not necessarily competent; S.80 must be respected. The Court relied on this decision to support its conclusion that the Sub Court, Thanjavur, lacked jurisdiction because the Southern Railway (whose line had custody where damage occurred, as alleged) was not a party and S.80 prescribes proper forums.
Union of India v. C.R. Prabhanna (Prabhanna & Sons / Praphanna & Sons — as cited) Referred to in relation to the interpretation and application of S.80 of the Railways Act vis-à-vis S.20 C.P.C.; Venkataramaiah, J.'s views questioned Assam Cold Storage decision. The Court expressed agreement with the view in this decision (as stated by Venkataramaiah, J.) that S.80 should be treated as an exception to or exclusion of S.20 for suits under S.80, and found Assam Cold Storage distinguishable or inapplicable.

Court's Reasoning and Analysis

The Court proceeded in structured steps:

  1. It accepted the undisputed facts: goods were booked at Boodhalur (within Thanjavur jurisdiction) and consigned to Naya Bazar (Northern Railway). The suit was framed and earlier claims had been made against the Northern Railway, and the plaint alleged damage was caused by the Northern Railway.
  2. It noted that prima facie S.20(c) C.P.C. might suggest part of the cause of action arose within Thanjavur (booking of goods at Boodhalur). The appellant relied on that to justify the Sub Court's jurisdiction.
  3. However, the Court focused on S.80 of the Indian Railways Act, enacted (by Act 39 of 1961) as a specific, complete and self-contained code governing suits for compensation against railways, including the specification of courts having jurisdiction.
  4. The Court reasoned that Parliament enacted S.80 after S.20 C.P.C. and, by specifying particular courts and circumstances in which suits may be instituted against railways, intended to restrict or exclude the general rule in S.20 C.P.C. for such cases; thus S.20 and S.80 cannot both operate concurrently to determine jurisdiction for S.80 suits.
  5. Applying that interpretation to the facts, the Court found the appellant had framed the suit against the Northern Railway and alleged damage occurred under the Northern Railway's administration; the Southern Railway (where the booking occurred and where the goods were delivered for carriage) was not made a defendant. Under S.80, the proper forum would be a court with jurisdiction over the place where the loss/damage occurred or over the place in which the destination station lies — not necessarily the booking station.
  6. The Court relied on prior authority (Union of India v. Swaminatha Mudaliar & Sons) where a similar objection about presence of the relevant railway administration was upheld, supporting the view that the Sub Court, Thanjavur, lacked jurisdiction in the present framing of the suit.
  7. Concerning timing of the jurisdictional objection, the Court observed that the respondent raised the objection in its additional written statement, an issue on jurisdiction was framed, and the parties tried that issue fully; therefore the objection was timely and the appellant was not taken by surprise.
  8. Consequently, the Court concluded the District Judge was correct in setting aside the Subordinate Judge's decree and ordering return of the plaint for presentation to the proper court pursuant to S.80.

Holding and Implications

The civil miscellaneous appeal fails and is dismissed.

Implications and direct consequences as stated in the opinion:

  • The District Judge's order directing return of the plaint to the appellant for presentation to the proper court was upheld as correct.
  • Both parties were directed to bear their own costs throughout.
  • The appellant was granted two months from the date of the order to take return of the plaint and present it before the proper court.
  • On the legal principle, the Court held that S.80 of the Indian Railways Act is a specific, self-contained code for suits claiming compensation against railways and operates so that S.20 C.P.C. does not apply to such suits; consequently, suits under S.80 must be instituted before the courts specified in that section. The Court rejected the contention that S.20(c) C.P.C. and S.80 can co-exist for these purposes and indicated that the decision in Assam Cold Storage Co. v. Union of India could not be applied to the present facts.
Show all summary ...

1.The plaintiff in O. S. No. 220 of 1972, Sub Court, Thanjavur, is the appellant in this appeal and the question debated relates to the jurisdiction of the Sub Court, Thanjavur, to entertain the suit. The appellant booked 100 bags of green gram at Boodhalur railway station of the Southern Railway on 10th May, 1970 to be carried to Naya Bazar railway station in New Delhi of Northern railway under railway receipt No. A. 073860. The consignment reached the destination on 22nd June, 1970 and the consignee, Vinodhkumar of New Delhi who had agreed to take delivery of the consignment by paying the hundi and producing the railway receipt, refused to do so as the green gram bags were in a damaged condition, as a result of which the appellant claimed that he had to persuade Messrs. Musadilal to take delivery after an assessment of the damage to 74 bags of gram in respect of which a certificate was also issued. Alleging that the appellant sustained damages as a result of the negligence of the respondent, the appellant laid the suit O.S No. 220 of 1975 before the Sub Court, Thanjavur, against the respondent herein for the recovery of a sum of Rs. 7,265.

2. That suit was resisted by the respondent herein on the ground that there was no negligence or misconduct on its part or on the part of its servants in the carriage of the goods and that the damages claimed were unreasonable and excessive. In an additional written statement, the respondent raised a plea that the Sub Court, at Thanjavur, had no jurisdiction to entertain the suit as the alleged negligence was that of the Southern Railway against whom the suit had not been filed and the respondent did not have any place of business or office within the jurisdiction of the Sub Court, Thanjavur, but had its office only in New Delhi. Thereupon, the appellant filed a reply statement contending that the cause of action for the suit arose at Boodhalur within the jurisdiction of the Sub Court, Thanjavur, and it is not open to the respondent to raise a question of jurisdiction belatedly.

3. On these rival claims of the parties, the learned Subordinate Judge, Thanjavur, framed the necessary issues and held that the loss of and damage to the goods were caused by the negligence of the railways belonging to the Indian Union and that the appellant is entitled to damages as claimed. On the question of jurisdiction the learned Subordinate Judge held that the Sub Court at Thanjavur had jurisdiction to try the suit even though the suit was instituted against the Union of India, represented by the General Manager of Northern Railway. Consequent to these findings, the suit was decreed. Aggrieved by this the respondent herein preferred an appeal in A.S No. 65 of 1979 to the District Court, Thanjavur. Before the learned District Judge the respondent raised the only plea that the Sub Court, Thanjavur, did not have jurisdiction to entertain the suit and consequently, the decree passed by it cannot be sustained. This contention was accepted by the learned District Judge, who held that the suit as laid could not be entertained by the Sub Court, Thanjavur, as it did not have any jurisdiction, vacated the decree and directed the return of the plaint to the appellant for presentation to the proper Court. It is the correctness of this order that is challenged in this appeal.

4. The learned counsel for the appellant contends that S. 20, C.P.C deals with the local limits as to jurisdiction of courts to entertain suits and under S. 20 (c) thereof, having regard to the booking of the goods at Boodhalur railway station within the jurisdiction of the Sub Court, Thanjavur, part of the cause of action arose within the jurisdiction of that Court and therefore, the suit can be maintained before the Sub Court, Thanjavur. It is also further contended that S. 20 (c), C.P.C as well as S. 80 of the Indian Railways Act can co-exist and therefore, no valid objection could be taken to the territorial jurisdiction of the Sub Court, at Thanjavur. In this connection, the learned counsel for the appellant relied upon the decision in Assam Cold Storage Co. v. Union of India.1 Further contention was also raised by the learned counsel for the appellant that the objection as regards the jurisdiction should not be permitted to be raised unless there has been a consequent failure of justice. On the other hand, the learned counsel for the respondent railway administration contends that though S. 20, C. P. C. may be a general provision with reference to the institution of suits, yet, having regard to the special provisions in S. 80 of the Indian Railways Act, that Section will govern the institution of any suit claiming compensation against the railways and since the suit, in the present case had not been instituted in accordance with that provision before the courts mentioned in that section, the Sub Court at Thanjavur will not have any jurisdiction to entertain the suit instituted by the appellant. Reliance in this connection is placed by the learned counsel for the respondents on the decision in Union of India represented through its General Manager, North Eastern Rly. v. G. Swaminatha Mudaliar and Sons, through its Mg, partner Moria Joseph and Union of India v. C.R Prabhanna and Sons.2 In addition, it is also pointed out by the learned counsel for the respondent that the objection as regards the jurisdiction had been raised at the earliest point of time even in the course of the additional written statement and an issue had also been raised in that regard and therefore, the appellant cannot be heard to object that no plea touching the jurisdiction of the court can be raised, unless there has been a consequent failure of justice.

5. Before proceeding to consider these rival contentions, it is necessary to advert to a few undisputed facts. The goods were consigned at Boodhalur Railway Station within the jurisdiction of the Sub Court, Thanvur, to Naya Bazar, a place on the Northern Railway. The claim which preceded the suit and the suit were laid against the Union of India, represented by the General Manager Northern Railway, New Delhi. Though prima facie, it may appear that under S. 20 (c), C. P. C. part of the cause of action had arisen in Boodhalur within the jurisdiction of the Sub Court, Thanjavur, and therefore, the appellant is entitled to institute the suit before that court, yet, a little further but deeper consideration of the matter would disclose that it cannot be so done. The respondent in the present case is the Union of India, represented by the General Manager, Northern Railway and it is certainly not the case of the appellant that the Northern Railway has any office within the jurisdiction of the Sub Court, Thanjavur. Therefore, the only basis upon which the appellant can seek to justify the institution of the suit before the Sub Court, Thanjavur, is part of the cause of action, viz, the booking of the goods at Boodhalur within the jurisdiction of the Sub Court, Thanjavur. This may accord with S. 20 (c) C. P. C. But, the provisions of S. 80 of the Indian Railways Act have also to be taken into account as that section deals with suits for compensation. Such a suit for compensation for loss of the life or personal injury to a passenger or for loss, destruction, damage, deterioration or non-delivery of animals or goods may be instituted in the manner provided thereunder. Broadly stated, according to the provisions of S. 80 of the Indian Railways Act a suit may be instituted against the railway where the goods were delivered for carriage or against the railway administration, on whose railway the loss, injury, destruction or deterioration occurred. The Court which has jurisdiction to entertain such a suit has also been specified. That section provides that the suit may be instituted in a court having jurisdiction over the place from which the purchaser obtained his pass or bought his ticket or the animals or goods were delivered for carriage as the case may be or over the place in which the destination station lies or the loss, injury, destruction, damage or deterioration occurred. It is thus clear that one part of S. 80 of the Indian Railways Act provides that any one of the several administrations over which the goods travelled can be sued and the latter part provides that the court having jurisdiction over the place at which the particular incident happened, such as whether the ticket was purchased or goods were delivered or whether the damage had occurred would be the proper court to entertain suits. In the present case, the appellant framed the suit in such manner to make it appear that the Northern Railway is the administration that is liable to pay compensation for the damage caused to the goods, because the claim had also been earlier made only against that Railway and the plaint also proceeded to allege that the damage to the goods was caused only by the Northern Railway administration. It is, therefore, obvious that the Sub Court, Thanjavur, cannot have any territorial jurisdiction over the place where, even according to the appellant, the damage to the goods, occurred.

6. The question now is whether the provisions of S. 20 (c), C.P.C would make any difference. The appellant would seek to sustain the institution of the suit before the Sub-Court, Thanjavur, only on the ground that the goods were booked from Boodhalur within the jurisdiction of the Sub Court, Thanjavur, and this, according to the appellant, would be covered by S. 20 (c), C.P.C In my view, it is not possible to accept this contention. S. 80 of the Indian Railways Act was substituted for the then existing provision by Act 39 of 1961 and it provides for a complete and self-contained Code regarding the courts before which the suit referred to in that section can be instituted, S. 20, C.P.C had been in existence at the time when S. 80 of the Indian Railways Act was substituted by Act 39 of 1961 and even so the Parliament thought fit to provide for the institution of suits claiming compensation against railways only before certain courts under the circumstances set out in S. 80 of the Indian Railways Act. If it had been intended that S. 20, C.P.C should continue to be applicable even with reference to the institution of such suits claiming compensation against railways, there was no need for specifying and enumerating in S. 80 such courts before which alone suits claiming compensation and referred to in S. 80, could be filed.

7. This view expressed by me is supported by the decision of this Court in Union of India, represented through its general manager, North Eastern Railway v. Swaminatha Mudaliar Sons through its Mg. Partner G. Maria Joseph. In that case also, the respondents filed the suit against the Union of India, represented through its General Manager, North Eastern Railway, claming damages in respect of loss of goods in transit consigned from Madurai station to a place on the North eastern railway. An objection was raised that the suit was not maintainable under S. 80 of the Railways Act before the District Munisifs Court, Madurai, and that was overruled. In revision, the railway contended that since he Southern Railway was not a party to the suit, the court at Madurai had no jurisdiction to entertain the suit. That objection was upheld by this court. In the present case also, it has already been seen that the Southern Railway to which the goods were delivered, had not been made a defendant in the suit instituted by the appellant and therefore, the Sub Court at Thanjavur certainly did not have any jurisdiction. So far as the Northern Railway is concerned, it has already been pointed out that the Northern Railway does not have any office within the jurisdiction of the Sub Court, Thanjavur, and therefore, the only other course that was open to the appellant was to have instituted the suit in accordance with S. 80 of the Indian Railways Act. The suit in the present instance should have been brought as against the respondent herein before a court having jurisdiction over the place in which the destination station lies or the loss, injury, destruction, damage or deterioration occurred. That would mean, the suit laid by the appellant against the respondent would be certainly not entertainable by the Sub Court, Thanjavur. The mere circumstance that the Union of India is the owner of all the railways in this country would not enable a suitor claiming compensation to institute suits against the railway administration wherever he may think fit, as such an interpretation would lead to complications and would also render S. 80 of the Indian Railways Act which had been enacted to assist not only the suits to claim compensation but also to afford protection to the railways, nugatory.

8. In Union of India, represented through its General Manager, North Eastern Railway v. Swaminatha Mudaliar Sons, through its Partner C. Maria Joseph the impact of S. 80 of the Indian Railways Act on S. 20, C.P.C, was not considered in detail by this Court but was dealt with in just one sentence to the effect that the question of jurisdiction under S. 20, C.P.C would also be in conformity with it. From the above discussion on the scope and purport of S. 80 of the Railways Act it is obvious that both S. 20, C. P. C. and S. 80 of the Railways Act cannot co-exist and be given effect to for the purpose of institution of suits claiming compensation against railways. As stated earlier, the provisions of S. 20, C.P.C were in force at the time when S. 80 of the Railways Act was enacted and the object of S. 80 of the Railways Act was to specify the courts having jurisdiction to try suits for compensation and to this extent the provisions of S. 20, C.P.C have to be read as not being applicable to suits falling under S. 80 of the Railways Act after the coming into force of S. 80 of the Railways Act introduced by Act 30 of 1961.

9. This view is supposed by the decision of Venkataramaiah, J. in Union of India v. Praphanna & Sons where the learned Judge has referred to the decision in Assam Cold Storage Co. v. Union of India and expressed his inability to agree with the view taken in that decision. It may also be stated that the C.P.C contains general provisions with reference to the jurisdiction of the courts in respect of institution of suits. The provision under S. 80 of the Railways Act has been enacted thereafter in 1961 and, as pointed out earlier, the two provisions cannot stand together, particularly when the Parliament had in mind the provisions of the C.P.C when it enacted S. 80 of the Railways Act and it may even be stated that S. 80 of the Railways Act is an exception to S. 80, C.P.C with reference to the institution of suits claiming compensation against railways. It is in this view that the decision in Assam Cold Storage Co. v. The Union of India, cannot be applied to the present case. With respect, I agree with the view expressed by Venkataramaiah, J. in the Union of India v. Prabhanna and Sons. Under these circumstances, the learned District Judge was perfectly correct when he held that the Sub-Court, Thanjavur, did not have any jurisdiction to try the suit.

10. The other objection raised by the appellant as regards jurisdiction has no merit. It has already been pointed out that the question of jurisdiction of the Sub Court, Thanjavur, was clearly and pointedly raised in the course of the additional written statement filed by the respondent and an issue was framed touching that aspect. The parties had gone to trial on that issue being fully alive to the objection raised. Under these circumstances it cannot be said that the appellant had either been taken by surprise pr did not have any adequate opportunity of meeting the objection raised by the respondent. Consequently, it cannot be said that the objection regarding the jurisdiction of the court cannot be permitted to be raised by the appellant. For the aforesaid reasons, the order of the learned District Judge directing the return of the plaint to the appellant for presentation to the proper court is perfectly correct. The civil miscellaneous appeal fails and is dismissed. Both the parties will bear their costs throughout. The appellant is granted two months time from this day to take return of the plaint and for representing it before proper court.

VCS.