UNION OF INDIA Vs. JAGDISH OIL MILLS

JUDGEMENT

(1.) THIS is defendant Railways' appeal against the decree for damages in the sum of Rs. 80,000/ - with interest at the rate of 6 per cent per annum from the date of suit till realisation passed against it on 29.1.1983 by the learned Civil Judge, Senior Division, Nasik, in Special Civil Suit No. 67 of 1981.

(2.) THE plaintiff is a registered partnership firm carrying on business of groundnut oil at Nasik. The plaintiff firm used to purchase the groundnut seeds for the use of its oil mill from various places outside Nasik. One Satyanarayan Traders of Kothapet, District Chittoor (A.P.), despatched to the plaintiff firm as per its order dated 12th May, 1980, 280 bags of groundnut seeds of the best quality, each bag containing 80 kg. of groundnut seeds from Sullurpeta under invoice No. 1, wagon No. NRC 30456 to Nasik Road Railway Station. The railway receipt was endorsed in the name of the plaintiff firm. The consignor, i -re., Satyanarayan Traders referred to above drew a hundi for Rs. 96,290/ - and sent the same along with the railway receipt. The plaintiff firm honoured the said hundi on 12th June, 1980 and received the railway receipt through bank on payment of Rs. 98,021.45. According to the plaintiff firm, after honouring the hundi it became the owner of the aforesaid groundnut seeds sent under invoice No. 1 of wagon No. NRC 30456, the railway receipt having been endorsed to it.

(3.) ACCORDING to the plaintiff, when the groundnut seeds in question did not reach the destination in 15 or 20 days time, it made anxious enquiries with the consignor as well as with the Railways and had also informed them that the said goods were perishable and would be damaged by reason of delay in reaching the destination. However, the said realistic enquiries were without any effect upon the Railways and as already stated the groundnut seeds in question arrived at Nasik Road Railway Station after an inordinate delay of 5 months on 6.10.1980.