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Issues involved: Appeal against the High Court's decision on a suit for damages due to alleged negligence by the Railway, and a claim for refund of excise duty.
Judgment Summary: Issue 1: Suit for damages against the Union of India The plaintiff, a registered partnership firm dealing in Bidi tobacco, filed a suit for damages against the Union of India alleging that due to negligence of the Railway, inferior goods reached the consignee instead of the goods despatched by the plaintiff. The Trial Court dismissed the suit, but the High Court of Allahabad reversed the decision and decreed the suit for damages. The appellant raised suspicions of fraud and collusion between the plaintiff and his father's firm in Gujarat, but the High Court found no conclusive evidence to prove the alleged fraud. The Supreme Court upheld the High Court's decision, emphasizing that fraud must be established beyond reasonable doubt, and suspicion alone cannot replace proof. Issue 2: Claim for refund of excise duty The plaintiff also claimed a refund of excise duty paid. The High Court refused to pass a decree regarding the excise duty, and cross objections were filed by the plaintiff. The Supreme Court found no merit in the cross objections and dismissed both the appeal and cross objections without any order as to costs. In conclusion, the Supreme Court upheld the High Court's decision, ruling in favor of the plaintiff in the suit for damages and dismissing the claim for refund of excise duty.
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