Bombay High Court
Potey Brothers And Ors. vs Union Of India (Uoi) on 3 September, 1996
Equivalent citations: 1(1998)ACC222
JUDGMENT B.U. Wahane, J.
1. A bunch of 17 appeals, conveniently with the consent of the learned Counsel of the parties, is disposed of by the common judgment, as the consignments of Betel leaves (Mitha Pan) were despatched on 21.4.1989 at Howrah, the same were received at its destination i.e., at Nagpur on 25.4.1989 and thereby the facts and the legal issues involved are one and the same except the claim differs.
2. The claims claimed by the appellants, allowed and disallowed in each case by the learned Railway Claims Tribunal, Nagpur, are detailed as under:
Ss. No. First Claim Name of the Claimed Amount Disallowed
Appeal application appellant/ Awarded
No. No. & its applicant
date of
decision
1 2 3 4 5 6 7
1. 241/ 15/OAI/ M/s. Potey 2226.00 Dama- 1113.00 Dama- 1113.00 @ 40%
91 RCT/ Brothers ges gas
NGP/91 @ 80 % @ 40%
25.3.91 as ass-
essed
by Rly.
222.60 10% Nil -- 222.60
loss
of
profit
50.00 Notice 25.00 25.00
charges
2498.60 Total 1138.00 1360.60
2. 243/ 16/OAI/ M/s. Potey 1467.60 Dama- 773.80 Dama- 773.80 @ 40%
91 RTC/ Brothers ges gas
NGP/91 @ 80 % @ 40%
26.3.91 as ass-
essed
by Rly.
146.75 10% Nil -- 146.75
loss
of
profit
50.00 Notice 25.00 Notice 25.00
charges charges
1664.35 Total 758.00 Total 905.55
3. 277/ 311/OAI/ M/s. Pradeep 619.40 Dama- 309.70 Dama- 309.70 @ 40%
91 RTC/ Kumar ges gas
NGP/90 Raipurkar @ 80 % @40%
22.4.91 as ass-
essed
61.95 10% Nil -- 61.95
loss
of
profit
50.00 Notice 25.00 Notice 25.00
charges charges
731.35 _ Total 334.70 Total 395.65
4. 517/ 91/OAI/ M/s. Ashif 1340.60 Dama- 670.30 ® 670.30
RTC/ Panwala ges 40%
NGP/91 @ 80 %
as ass-
essed
by Rly.
134.05 10% Nil 134.05
loss
of
profit
50.00 Notice 25.00 Notice 25.00
charges charges -
1524.65 Total 695.30 Total 829.35
5. 519/ 320/OAI/ Nilkanthrao 664.25 Dama- 332.12 @ 332.13 @ 40%
91 RTC/ Marotrao ges 40%
NGP/90 Ingoley @ 80%
28.6.91 as ass-
essed
by Rly.
66.40 10% Nil 66.40
loss of
profit
50.00 Notice 25.00 Notice 25.00
charges charges
780.65 Total 357.12 Total 423.53
6. 520/ 31 6/OAI/ Nilkanthrao 845.50 Dama- 442.76 @ 442.74 @ 40%
91 R TC/ Marotrao ges 40%
N GP/90 Ingoley @ 80%
28 .6.91 as ass-
essed
by Rly.
84.455 10% Nil 84.55
loss of
profit
50.00 Notice 25.00 Notice 25.00
charges charges
980.05 Total 447.76 Total 532.29
7. 521/ 73 /OAI/ Dulekhan 515.20 Dama- 257.60 @ 257.60 @ 40%
91 R TC/ Esmailkhan ges 40%
N GP/91 @ 80%
as ass-
1 essed
by Rly.
51.50 10% Nil 51.50
loss of
profit/
interest
50.00 Notice 25.00 Notice 25.00
charges charges
616.70 Total 282.60 Total 334.10
8. 528/ 56/OAI/ M/s. Betel 1162.05 Dama- 581.02 @ 581.03 @ 40%
91 RTC/ Stores ges 40%
NGP/91 @ 80%
28.6.91 as ass-
essed
by Rly.
116.20 10% Nil 116.20
loss of
profit/
interest
50.00 Notice 25.00 Notice 25.00
charges charges
1328.25 Total 606.02 Total 722.23
9. 533/ 272/OAI/ Rambhau 1962.80 Dama- 981.40 @ 980.40 @ 40%
91 RTC/ Jagannath ges 40%
NGP/90 Khurpade @80%
30.4.91 as ass-
essed
by Rly.
196.30 10% Nil 196.20
loss of
profit
50.00 Notice 25.00 Notice 25.00
charges charges
2208.25 Total 1006.40 Total 1201.70
10. 540/ 150/OAI/ Ramesh 5562.15 Dama- 2781.08 @ 2781.07 @ 40%
91 RTC/ Baliramji ges 40%
NGP/91 Labade @ 80%
25.7.91 as ass-
essed
by Rly.
556.20 10% Nil 556.20
loss of
profit/
interest
50.00 Notice 25.00 Notice 25.00
charges charges
6168.35 Total 2806.08 Total 3362.27
11. 541/ 90/OAI/ M/s. Ashif 1641.70 Dama- 820.84 @ 820.56 @ 40%
91 RTC/ Panwala ges 40%
NGP/91 @ 80%
31.7.91 as ass-
essed
by Rly.
164.15 10% Nil 164.15
loss of
profit/
interest
50.00 Notice 25.00 Notice 25.00 Notice
charges charges charges
1855.85 Total 845,84 Total 1010.01
12. 544/ 5/OAI/ M/s. Nalini 1289.85 Dama- 644.80 @ 64505 @ 40%
91 RTC/ Jagannath ges 40%
NGP/91 Bonde @80%
28.6.91 as ass-
essed
by Rly.
128.95 10% Nil 128.95
loss of
profit/
interest
50.00 Notice 25.00 Notice 25.00 Notice
charges charges charges
1468.80 Total 669.80 Total 799.00
13. 545/ 55/OAI/ M/s. Betel 1069.75 Dama- 534.88 @ 534.87 @ 40%
91 RTC/ Stores ges 40%
NGP/91 @ 80%
28.6.91 as ass-
essed
by Rly.
106.95 Loss of Nil 106.95
50.00 profit Notice 25.00 Notice 25.00 Notice
charges charges charges
1226.70 Total 559.80 Total 666.82
14. 547/ 280/OAI/ Ravindra 1568.40 Dama- 784.88 @ 784.20 @ 40%
91 RTC/ Narayan ges 40%
NGP/90 Bonde @ 80%
8,7.91 as ass-
essed
by Rly.
156.85 Loss of --Nil 156.85
50.00 profit Notice 25.00 Notice 25.00 Notice
charges charges charges
1775.25 Total 809.20 Total 966.05
15. 551/ 146/OAI/ M/s Keshari 1219.40 Dama- 609.70 @ 609.70 @ 40%
91 RTC/ Lal ges 40%
NGP/91 Panwala @ 80 %
3.7.91 as ass-
essed
by Rly.
121.95 10% --Nil 121.95
Loss of
Profit/
Interest
50.00 Notice 25.00 Notice 25.00 Notice
charges charges charges
1391.35 Total 634.70 Total 756.65
16. 552/ 72/0AI/ Dulekhan 635.20 Dama- 317.60 ® 317.60 @40%
91 RTC/ s/o ges 40%
NGP/91 Esmailkhan @ 80%
28.6.91 as ass-
essed
by Rly.
63.50 10% Nil 63.50
Loss of
Profit/
Interest
50.00 Notice 25.00 Notice 25.00 Notice
charges charges charges
748.70 Total 342.60 Total 406.10
17. 553/ 71/OA1/ Dulekhan 460.15 Dama- 230.08 @ 230,08 @ 40%
91 RTC/ Esmailkhan ges 40%
NGP/91 @ 80 %
28,6.91 as ass-
essed
by Rly.
46.00 10% Loss Nil 46.00
of Profit/
Interest
50.00 Notice 25.00 Notice 25.00 Notice
charges charges charges
, 556.15 Total 255.08 Total 301.07
3. There being no settlement between the parties in all the appeals, the appellants/original applicants issued notices under Section 78-B of the Indian Railways Act, 1890, and Section 80 of the Code of Civil Procedure. Inspite of the statutory notices received by the respondent, the claims not being settled, the appellants filed the claims before the Railway Claims Tribunal, Nagpur.
In each case, the appellants filed affidavit by way of evidence. The respondent filed only written statement, thereby led no evidence oral of documentary or even by way of affidavit.
4. Considering the evidence led by the parties and perusing the documents, the Railway Claims Tribunal in para 8 of the judgment, observed that;
The consignment which was booked, on 21.4.1989, should have been delivered at destination latest by 24.4.1989.
Thereby, according to the Tribunal the consigment was delayed by one day in transit and this could have happened only due to some negligence or misconduct on the part of the Railway staff. The damage assessed is, however, 80% which appears to be excessive for marginal delay of only one day in transit.
In the same para, the Tribunal, while reducing the damages claimed by the appellants, observed that:
Some inherent defect or vice in the consignment while booking. The responsibility for the damages should, therefore, be apportioned between the transporter and the consignee.
The appellants are awarded 40% damages by the Railway Claims Tribunal, Nagpur against the assessment of 80% of damages.
The loss of profits @ 10% claimed by the appellants is rejected in view of the provisions under Section 78(d) of the Indian Railway Act. Rs. 25 /- as notice charges were granted and thereby the claim of Rs. 50/- as notice charges has been rejected.
5. Mr. B.P. Dubey, the learned Counsel for the appellants, in all the appeals, raised the following points:
(i) The findings of the Railway Claims Tribunal, Nagpur are based on no evidence.
(ii) Whether the damages once assessed by the Railway Authorities, can be reduced by the Railway Claims Tribunal ?
(iii) Once the delay in transit is accepted by the Railway, whether it requires further proof as regards the quantum of damages.
(iv) Considering trend of judicial pronouncements to award damage at market rate, the claim for loss of profit can still be considered to be a remote damages ?
(v) Whether the notice charges of Rs. 50/- as claimed is excessive so as to justify rejection of Rs. 25/- towards the same ?
6. With the assistance of Mr. B,P. Dubey, the learned Counsel for the appellants and Mr. P.S. Lambat the learned Counsel for the respondent-Railway, I have perused the various provisions of the Indian Railways Act, 1890, Rules, Indian Railways Commercial Manual, pleadings affidavits and findings.
7. According to the appellants, they despatched the consigment of best quality 'Meetha Pan' on 21.4.1989, by Express Train Howrah to Nagpur, under the Parcel way Bill. Normally, the consignment should have been received at the destination i.e., Nagpur Parcel Office on the next day. Though the parcel way bill was presented on 22nd, 23rd and 24th of April, 1989 no delivery was given as the consignment was not reached its station of destination. The appellants very specifically in para 3 stated that the betel leaves sent from Howrah reaches Nagpur on the next day of the booking as the consignments are usually attached to the Howrah-Bombay Express Train for which extra freight is charged. It is further alleged by the appellants that on enquiry it was revealed that the parcel van attached to Howrah-Bombay Express Train on 21.4.1989, instead of unloading the consignments at Nagpur, was over-carried and detained at Manmad or somewhere else till 24.4.1989. It is an apparent negligence and carelessness on the part of the Railway Authorities and its staff.
The respondents in their written statement denied the fact that the consignment handed over to the Railway, were to be sent by Express Train on the same day, as there was no contract or guarantee to that effect. It depends upon the capacity and rooms in Parcel Van. Similarly, the allegations levelled in para 4 to the effect that the consignments in Parcel Van were sent by 30 UP Express (Howrah-Bombay Express) Train and the same was carried to Manmad or somewhere else, are denied.
According to the respondent, the consignments being booked on owner's risk, the respondents is not supposed to know the quality and conditions of the contents which are packed in bundles by the consigner, his agents or labourers. There being no negligence and miscoduct on the part of the Railway Staff, the Respondent is not liable for any loss, if any, caused to the appellants.
8. Rule 606 of Coaching Tariff No. 23-Part I (Volume II) deals with the declaration of contents of parcles. Sub-rule 1 of Rule 606 reads as under:
When the parcels contain articles of the following descriptions, they must be declared in writing by the sender or his authorised agent in the Forwarding Note at the time of booking-
(a) Articles carried at Owner's Risk rate;
(b) Articles of a perishable nature;
(c) Articles mentioned in Rules 604 and 1301;
(d) Articles defectively packed or in a defective condition;
(e) Explosives and other dangerous goods.
Sub-rule 2 of Rule 606 refers that:
When a parcel contains any of the articles above specified descriptions of the contents should be given in the parcles Way Bill.
Rule 618 deals with the rates for parcels, Sub-rule 3 of Rule 618 deals about the additional charges to be levied as indicated below:
(a) No perishable traffic should be carried by Mail/Express trains except on payment of a surcharge of 20 percent for all distances;
(b) No surcharge will be levied on non-perishable traffic carried by Mail/Express trains;
(c) All traffic, perishable or non-perishable when carried by-
(i) Superfast trains should be charged at two and half times of the appropriate rate applicable for carriage by Mail/Express trains.
(ii) Rajdhani Express trains should be charged at 5 times the parcel rates for carriage by Mail/Express trains.
Rule 619 deals with the parcels of Betal or Pan-leaves, butter, cream and Khoa (dried milk). It reads as under:
619. Parcels of Betel or Pan leaves, butter, cream and Khoa (dried milk)- When booked at owner's risk will be charged at Scale C.P.-1 rates shown in I.R.C.A. Coaching Tariff, Part III. These rates apply on the through distance with one minimum only divisible in the ratio distance over the Railways involved.
Under this Rule, there are notes. Note No. 2 speaks that:
Prepayment of freight is compulsory.
9. 'Perishable goods' as stated in Black on Law Dictionary, means:
goods which quickly decay and lose their value if not put to their intended use within a short period of time.
As stated in Jowitt on Dictionary of English Law, it means;
goods which decay and lose their value if not consumed soon, as fish, fruit or the like.
10. Perishable articles (goods) are those articles which on account of their inherent qualities or weakness are liable to be damaged or deteriorated after a lapse of time. Articles or things having inherent weakness or natural deterioration nature are also included e.g. a fluid substance which ordinarily evaporates or leaks. Perishable articles are, therefore, those articles which on account of their inherent infirmity or natural tendency to decay or deteriorate in the ordinary circumstances or from their natural tenedency to offer vescence or develop acidity. Fruits, vegetables are included in the list of perishable articles so also acid and other liquid substances, which from their ordinary diminishing or evaporating character are likely to decrease or disappear while in transit unless special precautions are taken.
11. It is not disputed that the Betel leaves are the perishable goods. The contract for Garriage by Railway does not expressly or by necessarily implication fix any time for the performance of the contractual obligation. The Law implies that the goods must be delivered within reasonable time. The reasonable time would be looking to the circumstances of the case. Where the Railway Administration has failed to deliver the goods within a reasonable time and the delay was on account of the misconduct of the servants of the Railway Administration and there was a depreciation in the value of the goods, as a result of the fall in the market price, the plaintiff is entitled to the damages as a result of fall in the market price.
Rule 933 of the Indian Railways Commercial Manual, deals with the Despatch of Parcels, which speaks as under:
Parcels must be despatched as quickly as possible. Parcles of a perishable nature, newspapers, and cinematograph films should, however, be despatched by the first suitable train so that they may reach their destination at the earliest. Individual Railways have issued pamphlets containing instructions for the clearance of parcles traffic, both local and through. The staff should carefully study these pamphlets and stricty act upon the instructions contained in them.
12. The Howrah-Nagpur-Bombay V.T. Trains are shown at page No. 79, Table B, of the Central Railway Time Table No. 59 issued in the month of May, 1988. Four trains departing from Howrah are designated as Up Trains. They areas under:
(i) 60 Up Howrah-Bombay Gitanjali Express departs Howrah at 13.15. hours and reaches Nagpur next day at 7.45 a.m.
(ii) 30 Up Howrah Bombay Express, departs from Howrah at 12.30 hours and reaches Nagpur at 12.05 hours.
(iii) 2 Up Howrah Bombay Mail departs from Howrah at 20.30. hrs. and reaches Nagpur at 15.45 hours; and
(iv) 134 Up Howrah-Ahmedabad Express departs from Howrah at 21.00 hours and reaches at Nagpur at 16.00 hours.
From this data, it is clear that the above trains departing from Howrah reach at Nagpur within 24 hours from their departing time.
Undisputedly, in all the cases, the consignments were booked on 21.4.1989 and reached on 25th April, 1989. In case the consignments are despatched by the suitable available train on the very day of despatch i.e., 21.4.1989, the consignment would have reached on 22nd April, 1989 at Nagpur. Even in case of the despatch of the consignments on 22.4.1989 at Howrah, would have reached at Nagpur by 23rd April, 1989. It is apparent that there is a delay in transit of the consignments of Betel leaves which were found damaged to the extent of 80% when the open delivery was given to the consignmee/its agents on 25.4.1989 at Nagpur.
13. The Respondent has not placed any material, though in possession, on record to indicate in fact when the consignments were despatched from Howrah and further indicating the circumstances which resulted the delay in transit. The Railway Claims Tribunal, Nagpur in para 8 of the order, observed that;
the damage may have caused by some other factors i.e., some inherent defect of the vice of the consignment while booking.
For this observation, there is no basis whatsoever. Though the respondent has not placed any material or data to suggest that there was inherent defects or vices in the consignments while booking on 21.4.1989, the learned Railway Tribunal expressed above opinion on mere surmise. In fact, opinion must also be based on some evidence oral or documentary.
14. In view of the provisions of Section 77(c) of the Indian Railways Act, 1890, the Railway Administration is not responsible for damages declaration, act of goods in defective condition or defectively packed. In the instant cases, it is not a case of the respondent that the consignments/parcles were in defective condition resultant damages/deterioration of the betel leaves.
In a case of The State v. Muhammad Moinuddin , their Lordships, in para 11, discussed the purpose of the Rule of the despatch as regards the despatch of perishable goods by next available train. Their Lordships observed that:
When an article of perishable nature is accepted for transport the Railway Administration must be presumed to know that it must be despatched as quickly as possible. Where, therefore, it is not possible to despatch the article by the first train leaving the booking station due to want of space of such train, then the obvious course open to the Railway Administration is not to accept the perishable articles unless and until there is space or accommodation available in the train by which the article in question has to be despatched. If the Railway Administration accepts an article of perishable nature for transport, and instead of despatching it by the first available, means, it allows the article to remain lying at the booking station for days together, then it cannot maintain that it has taken that care which it is expected to take as a bailee as provided for in Section 73 of the Act. I am, therefore, unable to accept the contention put forward by Mr. Bose and I have come to the conclusion that the Railway Administration cannot escape its liability for the loss or damage to the consignment in the present case.
15. As the consignor only contacts with the Receiving Railway for safety carrier of the goods and its delivery at the destination station, the Receiving Railway acts as agent of the consignor in this connection. Thus, the Railway is always responsible for the consignor for the fault of its agent but not vice versa.
It is the general responsibility of a Railway Administration as a carrier of animals and goods for the loss, destruction, damage, deterioration or non-delivery, in transit, of animals or goods delivered to the administration to be carried by railway. However, the provision of Section 73 of the Indian Railways Act, 1890, provided execptions in case of:
(a) act of God;
(b) act of war;
(c) act of public enemies;
(d) arrest, restraint or seizure under legal process;
(e) orders or restrictions imposed by the Central Government or a State Government or by any officer or authority subordinate to the Central Government or a State Government authority in this behalf;
(f) act or omission or negligence of the consignor or the consignee or the agent or servant of the consignor or the consignee;
(g) natural deterioration or wastage in bulk or weight due to inherent defect, quality of vice of the goods;
(h) latent defects;
(i) fire, explosion or any unforeseen risk.
Provision provides that the Railway Authority is not relieved of its responsibility for the loss, destruction, damage, deterioration or nondelivery unless the Administration proves that it has used reasonable foresight and care in the carriage of the animals or goods. The proviso reads as follows;
Provided that even where such loss, destruction, damage, deterioration or non-delivery is proved to have arisen from any one or more of the aforesaid causes, the Railway Administration shall not be relieved of its responsibility for the loss, destruction damage, deterioration or non-delivery unless the administration further proves that it has used reasonable foresight and care in the carriage of the animals or goods.
16. The foundation for the liability being the general law relating to the standard of care which a bailee is required to take and there being no dispute in the case regarding the basis of liability, the care which the bailee is required to take of the goods bailed to him is that of a man of ordinary prudence would take of his goods of the same bulk and quality and value. This aspect finds support by the dictum of their Lordships in a case of Union of India v. M/s. Udho Ram & Sons . In para 9 it is observed that:
The responsibility of the Railways under Section 72 of the Indian Railways Act is subject to the provisions of Section 151 of the Indian Contract Act. Section 151 states that in all cases of bailment, the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstance, take of his won goods of the same bulk, quality and value as the goods bailed.
17. From the provisions discussed above and the provisions of the Indian Railway Act, 189C, as also the views expressed by their Lordships of the Hon'ble Supreme Court, a burden casts on the carrier to prove that the reasonable care was taken. This aspect is dealt by their Lordships of the Patna High Court, in a case of Union of India and Anr. v. Orissa Textile Mills Ltd. and Anr. AIR 1979 Orrissa 165. In para 9, it is observed that:
Under the scheme of the Railways Act, as a bailee, in respect of the goods entrusted to it for carriage at carrier's risk, the Railway is liable for damages. Section 73 of the Railways Act provides statutory immunity in respect of damages arising out of stated causes, but the proviso makes it abundantly clear that it is for the carrier to establish that the damage occurred inspite of use of reasonable foresight and care. Under the law, it was for the Railways Administration to plead immunity and it denied, establish the plea by proof. The proviso makes the position clear that immunity can be claimed only by the further proving that reasonable foresight and care had been used. The burden therefore, is squarely on the Railway Administration to come under the umbrella of protection of immunity.
In a case of Union of India v. Radhakisan s/o Ramnath AIR 1969 Bombay 7, His Lordship discussed essential conditions which are available to the Railway Authority to take advantage of Section 74-A of the Indian Railways Act, 1890. His Lordship observed that:
Before the Railway Authorities want to take advantage of Section 74-A certain essential conditions are required to be satisfied as enumerated in that section. These conditions are:
1. That the goods which are tendered to the Railway Administration must be in a defective condition or must be either defectively packed or packed in manner not in accordance with the general or special order as provided by Sub-section (2) thereof.
2. The fact of such condition or defective or improper packing has been recorded by the sender or his agent in the forwarding note, and
3. Deterioration, leakage, wastage or damage in transit must be a consequence of the defective condition or the defective packing must result in leakage, wastage or damage in transit. It is only if these conditions are satisfied that it is open to the Railway Administration to take recourse to this section and then say that the Railway Administration shall not be liable for any deterioration, leakage, wastage or damage or for the condition in which such goods are available for delivery at destination, expect upon a proof of negligence or misconduct on the part of the Railway Administration or of any of its servants. But if in a given case the damage is not in any way related to or is not a consequence of the condition necessary for the operation of Section 74-A is not fulfilled.
A reliance is placed by Mr. Dubey the learned Counsel for the appellants on a case of Union of India v. M/s Kalinga Textiles Private Ltd. Company and Anr. (Nagpur Bench) (Deshmukh & Chandurkar, JJ.). In this case, in transit a wagon caught fire. The fire was not extinguished on the way but at the destination. Their Lordships, observed that:
The responsibility of the Railways as carriers is that of bailees under the provisions of Sections 151, 152 and 161 of the Contract Act, subject to the provisions of the Railways Act. Where an entire wagon was hired and fire had taken place to the wagon on the way, it is for the Railway Administration to lead evidence about the transit of this wagon from place to place and to disclose the entire information about the care taken in the handling of these goods. When the wagon is found to have caught fire it would be appropriate for the defendant Railway Administration to lead evidence of the Train Examiner who examined the wagon before it was allotted and also of the Train Examiner who was supposed to examine it after the fire took place. These two reports would give the Court some idea about the condition of the wagon and the probable cause why the wagon should catch fire. Where the Railway Administration have not rationally explained how the fire took place nor have the railway servants taken proper steps for extinguishing the fire immediately with a view to minimise the damage to the goods, negligence of the servants of the defendant Railway Administration will have to be presumed as the cause which caused the fire. (Negligence of Railway servants held proved).
In a case of Union of India v. West Punjab Factories Ltd. 1966 Supreme Court Reports (Vol.1) at page 580, in which Their Lordship, observed that:
Under Section 72 of the Indian Railways Act, the responsibility of the Railway Administration for the loss, destruction or deterioration of animals or goods delivered to the administration to be carried by defective packing must result in provisions of the Act, that of a bailee under Sections 151, 152 and 161 of the Indian Contract Act. The responsibility continues until terminated in accordance with Sections 55 and 56 of the Railway Act.
18. In a case of Union of India, New Delhi v. Shantilal Nanchand fain considering the facts and circumstances of keeping a parcel of sarees near the verandah of the Railway Station without entrusting it to any person to take care, held that it amounts to a negligence under Section 72 of the Indian Railways Act. His Lordship observed:
ping a parcel of sarees near the verandah of the Railway Station without entrusting it to any person is not the manner in which any person would have dealt with his own goods in similar circumstances. The amount of care enjoined on the Railway Administration under Section 72 of the Indian Railways Act, 1890, read with the Section (sic.) of the Indian (sic.) 1872, cannot, therefore be said to have been taken by the administration in respect of the parcel. The mere presence of a Railway servant on duty, on the night of theft cannot affect this inference when he had not been entrusted with the parcel.
In a case of Dominion of India v. Rupchand Heerachand AIR 1953 Nagpur 169, considering the facts and circumstances of. the case, Their Lordships observed in para 17 that:
employees of the Railway Administration are guilty of misconduct if they do not provide proper type of wagons for the carriage or goods and caused unnecessary delay in transit.
19. In a case of Union of India v. Brijlal Prushottamdas , Their Lordships considered the purport of " goods carried at owner's risk rate" and the provisions of 74(C)(3) and 74(D). The entire discussion is in paras 3, 4 and 5. Their Lordships held in para 5 as follows;
If the written statement filed by the administration discloses facts which show that in the common course of events the loss would not have happened if proper care had been taken, a presumption of negligence is raised and it is for the administration to rebut it by contrary evidence. In the absence of such evidence the Court may draw the inference that the loss was caused by the negligence of the administration.
According to me, the discussion made in paras 3 and 4 need to be reproduced here.
The case is governed by the Indian Railways Act, as it stood in 1951. The goods were carried at onwer's risk rate and Sections 74(C)(3) and 74(D) of the Act were attracted. Section 74(C)(3) provides that in such a case the Railway Administration, was not responsible for any loss, destruction, deterioration or damage to the goods from any cause whatsoever "except upon proof that such loss, destruction, deterioration or damage was due to negligence or misconduct on the part of the Railway Administration or any of its servants". As the explanation of the loss is within the exclusive knowledge of the Railway Administration it is almost impossible for the consignor to discharge this burden of proof. Section 74(D) lightens this burden and imposes upon the administration in some cases the duty of disclosing to the consignor how the consignment or the package was dealt with throughout the time it was in its possession or control. If the negligence or misconduct can fairly be inferred upon such disclosure the burden of proof under Section 74(C)(3) is discharged. Section 74D is as follows:
Notwithstanding anything contained in Section 74 C-
(a) Where the whole of a consignment of goods or the whole of any package forming part of a consignment carried at onwer's risk rate is not delivered to the consignee and such non-delivery is not proved by the Railway Administration to have been due to any accident to the train of to fire, or,
(b) Where, in respect of any consignment of goods or of any package which had been so covered or protected that the covering or protection was not readily removable by hand, it is pointed out to the Railway Administration on or before delivery that any part of such consignment or package had been pilferred in transit, the Railway Administration shall be bound to disclose to the consignor how the consignment or package was dealt with throughout the time it was in its possession or control, but if negligence or misconduct on the part of the Railway Administration or of any of its servants cannot be fairly inferred from such disclosure, the burden of proving such negligence or misconduct lie on the consignor.
4. Section 74 D envisages a disclosure in the from of a precise statement of how the consignment was dealt with by the administration followed by evidence at the trial in proof of the statement. The section clearly contemplates that on this matter the administration should submit its evidence first at the trial and it is only when negligence or misconduct cannot fairly be inferred from such evidence that the burden of proving the negligence or misconduct shifts to the consignor. In Surat Cotton Spinning and Weaving Mills Ltd. v. Secretary of State 64 Ind App 176 : , and Union of India v. Mahadeolal 1965-3 SCR 145 : , the Risk Notes B and Z under consideration provided that in certain cases "the Railway administration shall be bound to disclose to the consignor how the consigment was dealt with throughout the time it was in its possession or control and if necessary to give evidence thereof before the consignor is called upon to prove misconduct". Section 74D does not expressly provide that the administration is bound if necessary to lead evidence as to how it dealt with the consignment before the consignor is called upon to prove misconduct or negligence but we think that this obligation is implicit in the duty of disclosure imposed by the section.
20. In a case of Union of India v. M/s B. Pralhad & Co. , in paras 41 and 45 it is observed that:
If the damage is caused due to delay in transit, delay was prima facie proof of misconduct or negligence and thereby the Railway has to explain the delay.
In the above case, fresh plantains were sent from Savda Railway Station for delivery to the plaintiff at New Delhi Railway Station. Three days were required to bring the plantains to Delhi. But the goods were reached on the fourth day. Considering this fact, His Lordship in para 41 has observed that:
How did the Railway deal with the goods in transit ? This is a matter within their special knowledge (Section 106, Evidence Act). They have to explain. They have to prove. In this case no such evidence was given by the Railway. The Court is entitled to draw an adverse presumption against them under Section 114(g) of the Evidence Act, see Union of India v. Delhi Cloth and General Mills Co. Ltd. AIR 1964 Punj. 147.
His Lordship, therefore, observed in para 45 as follows:
Delay is prima facie proof of misconduct and negligence. The train took unusual time. It was for the Railway to explain it properly.
21. Mr. Dubey, the learned Counsel for the appellants brought to my notice the provisions of Section 58 of the Indian Railways Act, 1890 and corresponding Rule 907, in Chapter IX to the Indian Railways Commercial Manual. Under these provisions, if the Railway Authorities suspect any damage or leakage to the consignment, the Railway servants on behalf of the Railway Administration can direct the consignor or its agents to check and examine or to determine the rate which the Rly. Administration is entitled to charge in respect thereof. On refusal or neglect to open the parcel or packages containing the goods, the Railway Officers may refuse to carry the goods unless in respect thereof a rate is paid. Sub-sections 1 and 2 of Section 58 of the Indian Railways Act being relevant are reproduced here as:
58. Requisitions for written accounts of description of goods-
1. The owner or person having charge of any goods which are brought upon a Railway for the purpose of being carried thereon, and the consignee of any goods which have been carried on a Railway shall, on the request of any Railway servant appointed in this behalf by the Railway Administration, deliver to such servant an account in writing signed by such owner or person, or by such consignee, as the case may be, and containing such a description of the goods as may be sufficient to determine the rate which the Railway Administration is entitled to charge in respect thereof.
2. If such owner, person, or consignee refuses or neglects to give such an account, and refuses to open the parcel or package containing the goods in order that their description may be ascertained, the Railway administration may, (a) in respect of goods which have been brought for the purpose of being carried on the Railway, refuse to carry the goods unless in respect thereof a rate is paid not exceeding the highest rate which may be in force at the time on the Railway for any class of goods, or (b) in respect of goods which have been carried on the Railway, charge a rate not exceeding such highest rate.
Rule 907 of the Indian Railways Commercial Manual deals with the examination of parcel which is reproduced as under:
907. Examination of parcel-The careful checking of parcels is the first essential in order to limit the liability of the Railway by obtaining cogent and intelligent remarks on the forwarding note with regard to defective packing, deteriorated or damaged condition of contents of parcels etc. It is also necessary to see that the parcels tendered for despatch correspond with the entries in the forwarding note, and that they are packed according to packing conditions laid down in Coaching Tariff and clearly addressed. When a consignment is defectively packed or is not packed in accordance with the prescribed paking conditions, or is in a defective condition, the nature of defect should be brought to the notice of the sender or his agent and suitable remarks obtained from him in the forwarding note. These remarks should be compied out, verbatim, on all the foils of the way-bill.
The staff are forbidden to pass any remarks on the parcel way-bills that have not been recorded by the consignor or his agent on the forwarding note.
If any action would have been taken as contemplated under Section 58 of the Indian Railways Act, 1890 and Rule 907 of the Indian Railways Commercial Manual, it would have been definitely reflected in the parcel way-bill, in respect of the consignments booked by the appellants. The documents are not produced so as to limit the liability of the Railway. While assessing the damage, nothing sort was done.
22. The respondents has not placed any material on record to show what reasonable care and precautions were taken in transit or while carrying the goods from the date of booking of the consignment till its delivery to its destination at Nagpur. Thus, the burden cast the respondent was not discharged and thereby the damage caused to the consignments was due to negligence or misconduct on the part of the Railway Administration or any of its servants.
23. In some cases in respect of perishable goods even one day delay is also considered as gross negligence or misconduct on the part of the Railway Administration. In a case of Damodar Debata v. Union of India AIR 1956 Orissa 222, the plaintiff has sent the consignment of 44 baskets of mangoes from Kantakapalli to Cuttack on 2.6.1952 under the parcel way-bill Exh. I. In the ordinary course the consignments should have reached the destination the next day i.e., on 3.6.1952, but the parcels reached its destination on 5.6.1952 with the result that the contents were found to be rotten and unfit for human consumption. His Lordship held that:
it is the goods negligence and delay on the part of the Railway Administration in reaching the parcels to its destination". In delivering the goods without any reasonable cause, no explanation whatsoever is coming forward from the Railway Administration as to the cause of the delay. Thus, the Railway Authority/Administration having failed to show as to how the consignment was dealt with during the time it was in their possession or how the delay had occurred, the only legal inference that can be drawn is that there was misconduct on the part of the Railway and the plaintiff is entitled to a decree.
In a case of G. Madar Sahib v. The Governor General of India in Council , the consignment of mangoes was sent from Damalacheruvu on the M & S. M. Railway to Victoria Terminus, Bombay, on 5.8.1945. The mangoes reached Bombay in damaged condition owing to the considerable delay of the part on the Railways which attributed to their misconduct either on the part of the their administration or their servants. Considering the facts of the case, his Lordship in para 6 has observed that:
The delay is not only unexplained but all efforts to get at the materials to establish, if possible, the actual misconduct were frustrated by the non-production of the relevant documents by the deliberate act of the Railway concerned. In these circumstances, it is not surprising that the lower Court came to the conclusion that the Railway cannot escape liability.
24. Mr. Dubey the learned Counsel for the appellants very fairly brought to my notice the judgment and order passed by this Court (Desai, J.) in the First Appeal No. 260/91 with other First Appeals, M/s. Potey v. Union of India, decided on 17.4.1995, dismissing the First Appeal. According to Mr. Dubey, the learned Counsel for the appellants, the facts and legal aspects of those appeals and the appeals in hand are identical. In those First Appeals, though the Hon'ble Single Judge referred two citations of this Court, no view has been expressed whether the ratios laid down are applicable in those First Appeals or not similarly the submissions made on facts and legal aspects are not discussed in the judgment. So also the scope of Sections 73 and 74 as regard the discharge of the burden by the Railway, in absence of the material placed on the record, has not been considered. In view of this, Mr. Dubey the learned Counsel for the appellats submitted that this Court can take a different view as the view expressed by the Hon'ble Single Judge, in those First Appeals is not binding on this Court.
Mr. Dubey, the learned Counsel for the appellants further submitted that against the judgment dated 17.4.1995 passed, in view First Appeals referred above, by the Hon'ble Single Judge (Des, J.), the L.P. is preferred and the same is pending for admission. Prior to those First Appeals referred to above, a bunch of First Appeals was dismissed at the stage of admission. In those First Appeals the facts and the laws points involved are the same. Against the said dismissal, the Latent Patent Appeals preferred are admitted and pending for final disposal.
Mr. Lambat, the learned Counsel for the respondent tried to support the impugned orders passed by the Railway Claims Tribunal. It is submitted that to prove that the consignments were in proper conditions and the Betel leaves which were packed in the baskets, were of the fresh nature, the evidence of the consignor or it's agent/representative was essential. In the absence of the evidence of the consignor or its agent/representative, it is difficult to believe that the Betel leaves which were packed in the baskets/consignments were fresh without damaged or spoiled condition. It is not a case of the respondent that at the time of booking the consignments, the Betel leaves were not in good condition. If so, the Railway Authority would have placed on record the forwarding letter wherein the description of the goods are given. Similarly, if some action would have been taken by the Railway Authorities as contemplated under Section 58 of the Indian Railways Act, 1890 and the Rule 907 of the Indian Railways Commercial Manual, some documents would have definitely been placed on record. Similarly, a question was posed to the learned Counsel to substantiate the basis on which the learned Railway Claims Tribunal arrived at the conclusion that there may be inherent defect or vice in the consignments". The respondent could not lay hand on any material. Therefore, the opinion expressed in the judgment is merely on surmises.
Mr. Lambat, the learned Counsel for the respondent placed relience on the judgment and order dated 17.4.1995 delivered by Hon'ble Desai, J. It is not controverted by the learned Counsel who had also appeared in those First Appeals . that the arguments advanced before this Court were not advanced by Mr. Dubey, the learned Counsel for the appellants in those First Appeals before the Hon'ble Single Judge (Hon'ble Desai, J). With highest regard for my Brother Hon'ble Desai, J. I find no discussion on the facts, various provisions of law and rules as also the observations or law laid down by, their Lordships of the Supreme Court and High Courts, cited by the learned Counsel Mr. Dubey. It appears that the courtesy view has been taken without any discussion even on findings of facts. Thus, the findings of the Hon'ble Single Judge, in those First Appeals, are not binding on this Court, and therefore, I prefer to take different view.
25. Mr. Dubey, the learned Counsel for the appellants vehemently submitted that the consignor and consignee being the different traders, the appellants are entitled for the loss caused to the consignments due to the negligence or misconduct on the part of the Railway Administration or its staff. However, Mr. Dubey, the learned Counsel for the appellants very fairly stated that there being judicial pronouncements to the effect that the claimants are not entitled for the loss or damage caused to the consignments, in the alternate, the appellants are entitled to the admissible interest from the date of issuance of the statutory notice under Section 78-B of the Indian Railways Act, 1890 and under Section 80 of the Code of Civil Procedure.
26. I have perused the claim petitions. The appellants have not claimed the interest. Their Lordships of the Supreme Court in a case of Union of India v. West Punjab Factories Ltd., the Supreme Court Reports, 1966 (Vol.1) 580, observed that:
In the absence of any usage or contract, express or implied, or of any provision of law to justify the award of interest, it is not possible to award interest by way of damage and, therefore, no interest should have been awarded to the applicants/appellants prior to the institution of the claim petition.
27. As regards the claim of the notice charges for statutory notice issued to the respondent, though the appellants claimed Rs. 50/-, the learned Railway Claims Tribunal granted only Rs. 25/-. However, no reasons have been assigned for declining to a ward the demanded notice charges. The notices were issued sometimes in the year 1989. According to me, the demand of Rs. 50/- as notice charges definitely was not exhorbitant in the year 1989.
28. In the result, the instant First Appeals are allowed. The orders impugned so far as relating to the part of the claim denied to the appellants are quashed and set aside. The appellants are entitled to claim damage/loss as determined or assessed by the Railway Authorities at the time of issuing the damage certificates in each case. The appellants are also entitled to the notice charges of Rs. 50/- in each case as claimed. The appellants are also entitled to the future interest @ 6% p.a. from me date of the claim petitions till its realisation.
Thus, the instant first appeals are allowed with proportionate costs.