Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Carriage of Goods-Railways |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Carriage of Goods-Railways--Damage to consignment during transit-Consignor's right to sue railway administration for recovery of damages-No dispute between consignor and consignee about ownership of goods or right to sue-Plea of railways to resist consignor's right to sue-Held untenable.The Bihar State Electricity Board placed on order with Plaintiff No. 2 for supply of Transformer with accessories. The plaintiff tendered the consignment to the railway administration for carriage to Electricity Board. The consignment was covered by an open insurance policy issued by Plaintiff No.1. The consignment reached the destination but was found to be damaged. The damage was caused to the consignment in transit during its transhipment. The claim made by the plaintiff, the consignor, under the insurance policy was settled by the insurer. The consignor authorised the insurer to recover the damages from the railway administration. The insurer filed the suit for recovery of damages impleading the consignor as Plaintiff No. 2 and the consignee as the proforma Defendant No. 3. The suit was contested only by the Union of India representing the railway administration. The Bihar State Electricity Board apart from not contesting the suit had also intimated the railway administration that it had no right or interest in the goods. There was thus no dispute of title to the goods or right to sue between the consignor and consignee.It was alleged by the railway administration that ownership of goods was in the consignee and, therefore, the consignor had no right to sue. The liability for payment of compensation was also denied.The trial court decreed the suit and held that the consignor had title to the goods and, therefore, was entitled to maintain the suit. It was also held that the damage to the goods was caused during transit by the negligence of the railway administration. On appeal, the High Court reversed the Trial Court's judgment and decree. It was held that the property in goods had passed to the consignee when the consignment was booked and the consignor had no cause of action against the railway administration to make the claim for loss to the consignment during transit. The High Court held that the right to sue was only in the consignee. However, the finding of the trial court that the loss during transit was occasioned by the negligence of the railway administration was confirmed. This appeal had been filed against the judgment of the High Court. |
Judge | Honble Mr. Justice J.S. Verma |
Neutral Citation | 1995 INSC 67 |
Petitioner | M/s New India Assurance Co. Ltd. |
Respondent | Union Of India And Ors. |
SCR | [1995] 1 S.C.R. 507 |
Judgement Date | 1995-01-20 |
Case Number | 5060 |
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