(1.) The Union of India through the Chief Commercial Superintendent (Claims), S.E. Rly. who is the defendant in the court below is in appeal against the decree passed against it in a suit claiming compensation on account of loss of 21,760 liters of furnace oil.
(2.) The plaintiff-respondent brought the suit on the pleadings that he had purchased the amount of furnace oil from the Indian Oil Corporation, Visakhapatnam wherefrom it was despatched to the Barang railway station. The consignment having never reached Barang, he sustained the loss for which he claimed the compensation. It was also pleaded that the plaintiff had issued notice to the Railways under S.78-B read with S.140 of the Railways Act as also under S.80, Civil, P.C. which were received by the defendant on 10-10-1972, but however since there was no redressal of his grievance, he was compelled to file the suit.
(3.) The suit was contested by the appellant denying all the plaint averments and contending that the suit was not maintainable since firstly, the Union of India had not been represented in accordance with law; secondly, no notice as contemplated under S.80, C.P.C., had been served upon the appellant and lastly, there had been no proof of actual entrustment of the furnace oil to the care of the Railways and hence there could not be any liability for payment of compensation.