UNION OF INDIA Vs. WEST PUNJAB FACTORIES LIMITED

JUDGEMENT

(1.) These three appeals raise common questions and will be dealt with together. They arise out of two suits filed against the Government of India claiming damages for loss of goods which were destroyed by fire on the railway platform at Morar Road Railway Station. One of the suits was filed by Birla Cotton Factory Limited, now represented by the West Punjab Factories Limited (hereinafter referred to as the factory). It related to six consignments of cotton bales booked from six stations on various dates in February and March 1943 by the factory to Morar Road Railway Station. In five of the cases, the consignment was consigned to J. C. Mills while in one it was consigned to self. The consignments arrived at Morar Road Railway Station on various dates in March. Delivery was given of a part of one consignment on March 7, 1943 while the remaining goods were still in the custody and possession of the railway. On March 8, 1943 a fire broke out at the Morar Road Railway Station and these goods were involved in the first and serve damage was caused to them. It is not necessary to refer to the details of the damage for the matter is not in dispute between the parties. The case of the Factory was that the damage and loss was caused while the goods were in the custody and control of the railway administration and it was due to misconduct, negligence and carelessness on the part of the railway administration. Consequently, the suit was filed for Rs. 77,000 and odd along with interest upto the date of the suit and interest pendente lite and future interest.

(2.) In the other suit there was one consignment of 45 bales of cotton yarn. This consignment was booked from Belangunj to Morar Road Railway Station on February 22, 1943 and the railway receipt relating to this consignment was endorsed in favour of Ishwara Nand Sarswat who filed the suit. This consignment arrived at Morar Road Railway Station on February 23, 1943. Ishwara Nand Sarswat went to take delivery of this consignment on March 10, 1943, his case being that he had received the railway receipt on March 9, 1943. He then came to know that the consignment was involved in a fire which had taken place on March 8, 1943 and serve damage had been done to the consignment. Ishwara Nand Sarswat therefore, filed the suit on the ground that damage and loss was due entirely to the gross negligence of the railway administration. He claimed Rs. 72,000 and odd as damages and also claimed interest upto the date of the suit and pendente lite and future interest.

(3.) The suits were resisted by the Government of India. In the first suit by the Factory, it was pleaded that the Factory could not sue as the goods in five of the receipts had been consigned to the J. C. Mills; secondly, it was pleaded that delivery had been given of at least five of the consignment to the J. C. Mills before the fire broke out and the railway administration was not, therefore, responsible for the damage done by the fire, for it was the fault of the J. C. Mills not to have removed the goods immediately after the delivery; thirdly, it was pleaded that damages should have been granted at the rate of Rs. 38 per bale, which was the price contracted for between the buyer and the seller and not at the market rate on the date of the damage as was done by the Courts below; fourthly, it was pleaded that no interest should have been allowed for the period before the suit; and lastly, it was pleaded that the conduct of the railway administration was not negligent and, therefore, the railway was not bound to make good the loss.