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GOVERNOR GENERAL IN COUNCIL versus MUSADDI LAL

Citation: [1961] 3 S.C.R. 647 · Decided: 31-01-1961 · Supreme Court of India · Bench: J.L. KAPUR · Disposal: Appeal(s) allowed

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Judgment (excerpt)

r 
3 S.C.R. 
SUPREME COURT REPORTS 
647 
interest pendente lite until realisation, the appeals shall 
stand dismissed. In view of the substantial failure of 
the appeals, the appellant shall pay the costs· in this 
Court. One hearing fee. 
GOVERNOR GENERAL IN COUNCIL 
v. 
MUSADDI LAL. 
(J. L. KAPUR and J. C. SHAH, J.T.) 
Railway-Non-delivery of goods-Suit for compensation for 
non-delivery, if distinct from compensation for loss, 1iestruction or 
deterioration-Notice of claim 
for 
compensation, if condition 
precedent -Limitation from when to run-Indian Railways Act, 
I890 (IX of z890), ss. 72 and 77-Indian Limitation Act, x<)08, 
Arts. 30, JI. 
The respondent served on the Railway Administration a 
composite notice under s. 77 of the Indian Railways Act and 
under s. 80 of the Code of Civil Procedure and sued for price of 
goods and for Joss on account of non-delivery. The claim was 
resisted by the Railway Administration on pleas amongst others 
that the suit was not maintainable without an effective notice 
under s. 77 of the Railway Act and that. the suit was barred 
because at the date of the suit the period of limitation prescribed 
by Art. 31 of the Indian Limitation Act had expired. 
A full bench of the Allahabad High Court upheld the decree 
of the trial court in favour of the respondent holding that a claim 
for compensation for non-delivery Of goods was a claim distinct 
from the claim for compensation for loss, destruction or deteriora· 
tion of the goods, and to· the enforcement of a claim of the 
former variety by action in a court of law under s. 77 was not a 
condition precedent. 
Held, thats. 77 of the Indian Railways Act imposes a restric-
tion on the enforcement of liability declared by s. 72 of the Act 
and prescribes a condition precedent to the maintainability of a 
claim for compensation for goods lost, destroyed or deteriorated 
while in the custody of the railway Administration who are 
bailees and not insurer of goods. The section is enacted with a 
view to enable the railway administration to make enqniries and 
if possible to recover the goods and deliver them to the consignee 
and to prevent stale claims. Failure to deliver goods is the con-
sequence of loss or destruction and the cause of action for it is 
not distinct from the cause of action for loss or <!estruction, 
83 
M ~habir Prasad 
Rungt• 
v. 
'nwrga Dalla 
Hidayat•llah ]. 
January 3x. 
z96z 
Gawrnor-G1n1ral 
in Council 
v. 
Mtuaddi Lal 
Shah]. 
648 
SUPREME COURT REPORTS 
[1961] 
Held, further, that merely because Arts. 30 and 3I of the 
I.ndian Limitation Act prescribe different points of time from 
which the limitation is to run for suits against carriers it cannot 
be inferred that the claim covered by either article is not for 
compensation for loss, destruction or deterioration of the goods; 
and the said Arts. 30 and 3r cannot be projected upon ss. 72 and 
77 of the Indian Railways Act for holding that suit for compensa-
tion for non-delivery of goods does not fall withins. 77. 
The Madras and Southern Mahratta Railway Co. Ltd. v. 
Haridoss Banmalidoss, {r9r8) l.L.R. 4r Mad. 871, Hilt Sawyers and 
Co. v. Secretary of State, {r92r) I.L.R. 2 Lah. r33, Martab Ali v. 
Union of India, (1954] 56 Born. L.R. 150, Union of India v. 
Mitayagiri Pullappa; I.L.R. [r958] A.P. 323, Assam Bengal 
Railway Co. Ltd. v. Radhika Mohan Nath and Others, A.I.R. (1923) 
Cal. 397 and Bengal Nagpur Railway Co. Ltd. v. Hamir Mull Chha-
gan Mull and Another (r926} I.L.R. 5 Pat. ro6, approved. 
Governor-General in Council and Others v. Mahabir Ram and 
Another, {r953} I.L.R. I All. 64 and ]ais Ram Ramrekha Das v. 
G.I.P. Railway and Another (1929) I.L.R. 8 Pat. 545, overruled. 
CIVIL APPELLATE JURISDICTION: 
Civil 
Appeal 
No. 313/1956. 
Appeal from the judgment and decree dated 
July 25, 1952, of the Allahabad High Court in Second 
Appeal No. 2547of1946. 
R. Ganapathy Iyer and T: M. Sen for the appellant 
K. P. Gupta, for the respondent. 
1961. January 31. The Judgment of the Court was 
delivered by 
Slj:AH, J.-On January 30, 1943, Bhola NathSambhu 
Ram as agent of the respondent L. Musaddilal deli-
vered a bale of cloth to the railway administration 
E. I. Rly. at Agra railway station for carriage by rail-
way to the Chola Station in the E. I. !Uy. The 
consignment was accepted by the railway adminis-
tration and a railway receipt was issued in the name 
of the consignor Bhola Nath Sambhu Ram. Bhola 
Nath Sambhu Ram endorsed the railway receipt in

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