Misra, J. - (1.) THE present appeal by the Union of India is directed against the judgment and decree of the First Addi tional Civil Judge, Kanpur, dated 9th November, 1956.
(2.) MESSRS . Bruel and Company of Bombay is a cotton merchant and commis sion agent. On 2nd May, 1951 they booked two consignments of 100 bales each of fully pressed cotton at Raichur Station for being carried and delivered to Laxmi Rattan Cotton Mills Company Limited at Kanpur. They also got the two consignments insured with Neptune Assurance Company Limited of Bombay for Rs. 52, 000/- and Rs. 51, 000 respectively for the period from 2nd May, 1951 till the unloading of the bales at the destination station. Raichur Station fell on the G.LP. Railway (now the Central Rail way) as it was prior to the division of the Indian Railways into new zones. Two Rail way Receipts bearing Nos. A-7263/96 and A-7263/97, dated 2nd May, 1951 were issued in respect of the two consignments mentioning Laxmi Rattan Cotton Mills Co. Ltd. as the consignees. It appears that the consignments did not reach the consignee for a pretty long time and, therefore, correspondence ensued between the consignee and the Chief Traffic Manager, G. I. P. Railway, Bombay. Later on it transpired that the goods of the two consignments had caught fire on 9th May, 1951 near Sarola Station. About 50 burnt bales were later on deliver ed to the consignee. The consignee prefer red its claim against the insurer and the Neptune Assurance Co. Ltd. paid a sum of Rs. 92, 966/- in full settlement of the claim of the consignee under the two policy Nos. 16744 and 16745. But in spite of re peated demands the Railway administration did not pay the damages. Accordingly the Laxmi Rattan Cotton Mills Co. Ltd. and the Neptune Assurance Co. Ltd. filed the suit, giving rise to the present appeal, against the Union of India for a sum of Rs. 99, 906-6-9 as compensation for loss suffered by them, after serving notice under Section 80, C. P. C. through the General Manager, Eastern Railway, Calcutta, the General Manager, Northern Railway, Delhi and the General Manager, Central Railway, Bombay.
(3.) IT was alleged in the plaint that the said loss or non-delivery of the goods had arisen by reason of the default and negligence of the defendant railway adminis tration and, therefore, the Union of India was liable for the loss or non-delivery of the 200 bales of fully pressed cotton.;