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1962 (3) TMI 103 - SC - Indian Laws

Issues Involved:
1. Interpretation of Article 31 of the Limitation Act.
2. Determination of when the limitation period begins for a suit against a carrier for non-delivery of goods.
3. Application of the Displaced Persons (Institution of Suits) Act, 1948, as amended by the Displaced Persons (Institution of Suits and Legal Proceedings) Amendment Act, 1950.

Issue-Wise Detailed Analysis:

1. Interpretation of Article 31 of the Limitation Act:
The primary issue in this case is the interpretation of Article 31 of the Limitation Act, which prescribes a one-year limitation period for suits against a carrier for compensation for non-delivery or delay in delivering goods. The key phrase in Article 31 is "when the goods ought to be delivered." The court noted that the interpretation of this phrase has been subject to various decisions by different High Courts. The court emphasized that the words of a statute should be given their strict grammatical meaning, as laid down by the Privy Council in Nagendranath v. Suresh and General Accident Fire and Life Assurance Corporation Limited v. Janmahomed Abdul Rahim. The court concluded that the phrase "when the goods ought to be delivered" means the reasonable time taken for the carriage of goods from the place of dispatch to the place of destination, in the absence of any term in the contract fixing the time for delivery.

2. Determination of When the Limitation Period Begins:
The court analyzed two lines of reasoning from various High Court decisions regarding when the limitation period begins. The first line of reasoning suggests that limitation starts when the railway finally refuses to deliver the goods. The second line of reasoning is based on estoppel, suggesting that if the railway engages in correspondence indicating efforts to trace the goods, it is estopped from pleading that the limitation period began earlier. The court rejected these lines of reasoning, stating that the words in Article 31 cannot be interpreted as meaning the final refusal of the carrier to deliver. Instead, the court held that the limitation period begins after a reasonable period has elapsed for the carriage of goods from the place of dispatch to the place of destination.

The court further stated that reasonable time must depend on the circumstances of each case and that subsequent correspondence between the carrier and the consignor or consignee generally does not affect the reasonable time for delivery. However, if the correspondence discloses material relevant to determining reasonable time, it may be considered. The court agreed with the Full Bench decision in Dominion of India v. Firm Aminchand Bholanath, which held that the limitation period starts on the expiry of the time fixed between the parties or, in the absence of such an agreement, on the expiry of a reasonable time.

3. Application of the Displaced Persons (Institution of Suits) Act, 1948:
The appellant contended that he was a displaced person and thus entitled to file the suit under the Displaced Persons (Institution of Suits) Act, 1948, as amended by the Displaced Persons (Institution of Suits and Legal Proceedings) Amendment Act, 1950. The court noted that the appellant had mentioned his status as a displaced person in the plaint to establish jurisdiction but did not rely on this status concerning the limitation issue. The respondent denied that the appellant was a displaced person. The court, considering the appellant's circumstances arising from the partition of India and his status as a pauper, decided to remand the case to the trial court to allow the appellant to prove his case under the Displaced Persons Act.

The court allowed the appeal and remanded the case to the trial court to consider the limitation issue based on the Displaced Persons (Institution of Suits) Act, 1948, as amended by the 1950 Act. The trial court was directed to give the parties a chance to lead evidence on this issue. If the trial court finds that the suit is within time under these Acts, a decree for the amount claimed, minus the costs incurred by the respondent up to that date, will be passed in favor of the appellant. If the suit is found to be time-barred under these Acts, it will be dismissed.

Conclusion:
The court allowed the appeal and remanded the case to the trial court to determine the limitation issue based on the Displaced Persons (Institution of Suits) Act, 1948, as amended by the 1950 Act. The trial court was instructed to allow the parties to present evidence on this issue and decide accordingly. The costs incurred up to the date of the appeal were to be borne by the appellant, irrespective of the outcome of the suit.

 

 

 

 

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