KASHIRAM AGARWALLA Vs. DOMINION OF INDIA

JUDGEMENT

(1.) This is a suit for recovery of the sum of Rs. 6,236-0-3 from the Dominion of India as compensation for loss of goods despatched by rail. There is no dispute that the goods were sent from a railway station now situate within the territory of the Union of India, their destination being a place in Eastern pakistan. The Defendant disputes its liability to meet the Plaintiff's claim on various grounds.

(2.) A preliminary point was taken in defence as to whether the Defendant had any liability at all under the contract in suit. The relevant provision of law contained in Article 8 of the Indian Independence (Rights, Property and Liabilities) Order reads as follows:

(3.) It is now well settled that in order to find out which of the two dominions is liable, an artificial test has to be put, i.e., one must either consider the liability of the respective dominions treating both of them in existence at the time when the contract was made or in the alternative find out which of the two would be liable treating the contract as having been entered into, on August 15, 1947, when both the dominions had sprung into existence.