Bombay High Court Allows Union of India's Appeal in Railway Claims Case — Claim for Non-Delivery of Onions Held Time-Barred Under Section 78B of Railways Act, 1890. Notice of Claim Given After Six Months from Date When Delivery Ought to Have Taken Place, Hence Claim Not Maintainable.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The appellant, Union of India, represented by the General Managers of Central and Northern Railways, appealed against the judgment and decree of the Railway Claims Tribunal, Bombay, which had allowed the claim of the respondent, Maharashtra State Co-operative Marketing Federation Limited, Bombay. The respondent was a co-operative marketing federation sponsored by the Government of Maharashtra. In the year 1983-84, the Government called upon the respondent to purchase onions from agriculturists and sell them outside Maharashtra. The respondent set up onion purchase centres and arranged for transport of onions by railway. The consignment in question was booked on 28.12.1983 from a station in Maharashtra to a destination outside the state. The consignment was not delivered to the consignee. The respondent claimed that the goods were lost or misdelivered. The respondent gave a notice of claim to the railway administration on 22.10.1985. The Railway Claims Tribunal allowed the claim. The Union of India appealed, contending that the claim was time-barred under Section 78B of the Railways Act, 1890, which required notice of claim to be given within six months from the date of delivery or the date on which delivery ought to have taken place. The court examined the facts and found that the consignment was booked on 28.12.1983 and ought to have been delivered within a reasonable time thereafter. The notice of claim was given on 22.10.1985, which was clearly beyond six months from the date when delivery ought to have taken place. The court held that the claim was time-barred and allowed the appeal, setting aside the judgment and decree of the Tribunal.

Headnote

A) Limitation - Notice of Claim - Section 78B Railways Act, 1890 - Time-barred Claim - The respondent claimed compensation for non-delivery of onions consigned by railway. The consignment was booked on 28.12.1983 and was not delivered. The respondent gave notice of claim on 22.10.1985, which was beyond six months from the date when delivery ought to have taken place. The court held that the claim was time-barred under Section 78B of the Railways Act, 1890, as the notice was not given within the prescribed period. (Paras 1-6)

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Issue of Consideration

Whether the claim for non-delivery of goods was time-barred under Section 78B of the Railways Act, 1890, as the notice of claim was not given within six months from the date of delivery or the date on which delivery ought to have taken place.

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Final Decision

Appeal allowed. The judgment and decree of the Railway Claims Tribunal are set aside. The respondent's claim is dismissed as time-barred.

Law Points

  • Limitation
  • Notice of Claim
  • Section 78B Railways Act
  • 1890
  • Time-barred claim
  • Railway Claims Tribunal
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Case Details

2010 LawText (BOM) (02) 68

First Appeal No.613 of 1996

2010-02-11

C. L. Pangarkar

Mr. A. N. Samant, Advocate, for the appellant; None for the respondent

Union of India, represented by the General Managers of Central and Northern Railways, Bombay

Maharashtra State Co-operative Marketing Federation Limited, Bombay

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Nature of Litigation

Appeal against judgment and decree of Railway Claims Tribunal allowing claim for non-delivery of goods.

Remedy Sought

Appellant sought setting aside of the Tribunal's order allowing the respondent's claim.

Filing Reason

The respondent claimed compensation for non-delivery of a consignment of onions booked on 28.12.1983. The appellant contended the claim was time-barred under Section 78B of the Railways Act, 1890.

Previous Decisions

Railway Claims Tribunal allowed the respondent's claim.

Issues

Whether the claim for non-delivery was time-barred under Section 78B of the Railways Act, 1890.

Submissions/Arguments

Appellant argued that the notice of claim was given on 22.10.1985, which was beyond six months from the date when delivery ought to have taken place, and thus the claim was time-barred under Section 78B of the Railways Act, 1890. Respondent did not appear to argue.

Ratio Decidendi

Under Section 78B of the Railways Act, 1890, a claim for compensation for loss or non-delivery of goods must be made within six months from the date of delivery or the date on which delivery ought to have taken place. In this case, the consignment was booked on 28.12.1983 and ought to have been delivered within a reasonable time thereafter. The notice of claim was given on 22.10.1985, which was beyond six months from the date when delivery ought to have taken place. Hence, the claim was time-barred.

Judgment Excerpts

This is an Appeal by Union of India against the Judgment and Decree passed by the Railway Claims Tribunal, Bombay against it. The respondent/original plaintiff is Maharashtra State Co-operative Marketing Federation Limited, Bombay. The Government of Maharashtra called upon the plaintiff to make purchase of onions produced by the Agriculturists in the year 1983-84 and to sale them at places out of Maharashtra. The plaintiff, therefore, set up Onion Purchase Centres in the State of Maharashtra and under the supervision of the Government of Maharashtra, the plaintiff purchased onions and arranged to transport them by railway. The consignment was booked on 28.12.1983 and was not delivered. The notice of claim was given on 22.10.1985. The claim was clearly time-barred under Section 78B of the Railways Act, 1890.

Procedural History

The respondent filed a claim before the Railway Claims Tribunal, Bombay, which was allowed. The Union of India appealed to the High Court of Judicature at Bombay by way of First Appeal No.613 of 1996.

Acts & Sections

  • Railways Act, 1890: Section 78B
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