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1967 (7) TMI 135 - HC - Indian Laws

Issues Involved:

1. Limitation period applicability
2. Validity of notice under Section 77 of the Railways Act
3. Entitlement to refund of excess freight

Issue-wise Detailed Analysis:

1. Limitation Period Applicability:

The primary issue discussed was the appropriate limitation period for the plaintiff's suit. The plaintiff initially relied on Article 115 of the Limitation Act, which provides a three-year period for suits related to breach of contract. The defendant argued for Article 31, which provides a one-year limitation for suits against carriers for non-delivery or delay in delivering goods. During the appeal, the plaintiff invoked Article 120, and the defendant Article 62. Eventually, the court focused on whether the suit was barred by limitation. The court noted that the suit was filed beyond the three-year period from the date of the alleged breach of contract, making it time-barred. The plaintiff's attempt to rely on a letter dated 28/30th January 1957 as an acknowledgment of liability under Section 19 of the Limitation Act was rejected. The court found that the letter did not constitute an acknowledgment of liability or an admission of a jural relationship between the parties.

2. Validity of Notice under Section 77 of the Railways Act:

The defendant contended that the suit was invalid due to the lack of a valid notice under Section 77 of the Railways Act. The lower appellate court held that a notice under Section 77 was unnecessary as the case was for breach of contract, not for refund of overcharge. However, assuming Section 77 was applicable, the court examined whether a valid notice was served. The plaintiff had sent a letter on 16th January 1956 to the Deputy Chief Commercial Superintendent, which the court found to be a valid notice. The court noted that the defendant did not deny the authority of the Deputy Chief Commercial Superintendent to handle such claims, thereby validating the notice under Section 77.

3. Entitlement to Refund of Excess Freight:

The court considered whether the plaintiff was entitled to a refund of the entire difference between the parcel rate and the goods rate. The defendant argued that the consignment was carried in a parcel train at least up to Itarsi, so the plaintiff was liable to pay the parcel freight for that portion of the journey. The court did not express a concluded opinion on this point, as the suit was already dismissed on the ground of limitation.

Conclusion:

The court set aside the decision of the lower appellate court and dismissed the plaintiff's suit with costs throughout, primarily on the ground that the suit was barred by limitation.

 

 

 

 

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