UNION OF INDIA Vs. ASHOK KUMAR RASIKLAL

JUDGEMENT

(1.) This is an appeal by the defendant, Union of India representing the South Eastern Railway, against the decree of the trial court for a sum of Rs. 79,556.40 passed as damages for non-delivery of certain Mohua flower consignments, raising some interesting questions of law.

(2.) The facts : The plaintiff despatched nine consignments of Mohua flower from Khariar Road Railway Station to Seoni under nine separate railway receipts in the month of May, 1970. Each consignment was loaded in one full wagonload consisting of 321 bags, each weighing 224.70 quintals. The consignments were booked to 'self' and, according to the plaintiff's case, they were despatched under sale orders to M/s. Jaiswal Trading Corporation, Seoni, subsequently added as defendant No. 2, @ Rs. 8,839.60 p. per wagon. The relative documents including the railway receipts were accordingly sent through the Bank for collection of the money from the concerned party. The defendant-Railway Administration, however, delivered all the consignments to defendant No. 2 on the basis of indemnity bonds without presentation of the railway receipts. Since defendant No. 2 did not retire the documents from the Bank, the Bank returned them to the plaintiff. The plaintiff claimed damages from the defendant-Railway Administration on the ground that the delivery of the consignments to defendant No. 2 was entirely illegal and, therefore, the defendant was liable to compensate the loss in question to the plaintiff. It may be mentioned that originally the suit was filed only against the General Manager, S.E. Railway. But after filing of the written statement, the plaint was a amended impleading defendant No. 2 and also amending the description of defendant No. 1 by adding "Union of India through" before the description of the original defendant.

(3.) Since long arguments have been made regarding the effect of the amendment, I shall discuss the same at the appropriate stage, but the order allowing the amendment which was passed on 27-2-1974 stated that "as the amendment is a formal one, and as no objection is raised from the other side, it is allowed".