The damage caused to the companysignment was also surveyed and the surveyor gave his report estimating the loss at Rs.
1 New India Assurance Co. Ltd. authorising the insurer to recover the damages from the railway administration.
The companysignment was companyered by an open insurance policy issued by New India Assurance Company Plaintiff No.
2 for supply of one 20 M.V.A. Transformer with accessories.
1,96,849/The claim made by the Plaintiff No.
The Bihar State Electricity Board Defendant No.
The trial companyrt decreed the suit against the Union of India for recovery of Rs.
It appeared that the damage was caused to the companysignment in transit during its transshipment from a broad gauge wagon to a meter gauge wagon.
Accordingly, the suit was decreed in favour of the plaintiffs for recovery or Rs.
After the statutory numberice, New India Insurance Company Ltd. as the insurer filed the suit for recovery of the said amount impleading the companysignor as Plaintiff No.
NGEF Limited Plaintiff No.
3 and, therefore, the plaintiffs i.e. the insurer and the companysignor had numberright to sue.
3 placed an order with NGEF Limited Plaintiff No.
3 remained ex parte and did number companytest the suit.
3 whose title to the goods was asserted by the railway administration, apart from, number company testing the suit had also intimated the railway administration by a letter that it had numberright or interest in the goods and, therefore, it had numberobjection to recovery of the amount by the plaintiffs from the railway administration.
The companysignee Defendant No.
The trial companyrt accordingly rejected this defence of the railway administration and held that the companysignor Plaintiff No.
There was thus numberdispute of title to the goods or right to sue between the companysignor and companysignee.
Open delivery of the companysignment was given by the railway an 31.8.1977 and a certificate of damage to this effect was issued by the railway administration.
2 and the companysignee as the proforma Defendant No.
The letter Ex.
1 under which insurer was liable to reimburse the companysignor NGEF Ltd. Plaintiff No.
The companysignor, plaintiff No.
It is significant that the Bihar State Electricity Board Defendant No.
P 9 dated 09.12.1978 sent by the companysignee Defendant No.
3 as companysignee.
Hence this appeal by Special Leave.
1,96,849/ .
The companysignment reached the destination on 31.7.1977 but was found to be damaged.
3 was addressed to the railway administration and companyntersigned by the Station Master of the destination station at the time of giving open delivery of the goods.
1,97,864/ with interest at the rate of 6 percent from Defendants 1 and 2, the Union of India representing the companycerned railway administrations.
In the first appeal filed by the Union of India, the High Court has reversed the trial companyrts judgment and decree.
S. VERMA, J. The suit giving rise to this appeal was filed by the appellant New India Assurance Co. Ltd. and Respondent No.
The defence of the railway administrations was that ownership of goods was in the companysignee Bihar State Electricity Board Defendant No.
3 NGEF Ltd. against the Union of India representing the companycerned railway administrations impleading the Bihar State Electricity Board as a proforma defendant to recover the sum of Rs 1, 97,864/ together with interest as companypensation for loss of goods during transit by rail.
2 tendered the companysignment on 15.6.1977 to the railway administration at Bangalore for carriage to, and delivery at Hajipur in Bihar, naming the Bihar State Electricity Board Defendant No.
The suit was companytested only by the Union of India representing the railway administrations.
2NGEF Ltd., the companysignor, under the insurance policy was settled by the insurer by payment of Rs.
1.97,864/ together with interest at the rate of 6 percent per annum from the, date of suit till payment.
The first appeal filed by the Union of India against the plaintiffs has been allowed by the Karnataka High Court and the judgment and decree of the trial companyrt decreeing the suit have been set aside.
2 for number delivery or loss of the companysignment during transit by rail.
The liability for payment of companypensation was also denied.
