(1.) The State of U.P. had booked 3236 bags of wheat for transportation by Railways. At the destination, at the time of delivery the wheat was found short, moist and spoiled on account of which State of U.P., allegedly suffered a loss of Rs. 3,283.53 paise. The negligence was attributed solely to the Railways.
(2.) The State of U.P. as plaintiff instituted a suit against the Union of India through General Manager, Northern Eastern Railway, Gorakhpur and the General Manager Northern Railway, Baroda House, New Delhi for recovery of Rs. 3,283.53 paise.
(3.) In the suit, a preliminary objection was raised on behalf of the defendants that the suit is not maintainable in view of Article 131 of the Constitution of India. Accordingly, issue No. 6 was framed with regard to above preliminary objection. It was decided by the first court and it was held that the jurisdiction of the civil court stood excluded and the plaint was ordered to be returned for presentation to proper court vide judgment and order dated 4.10.1974.