UNION OF INDIAversusSTATE TRADING CORPORATION and ANR.

                     KVM
                                                        1/3
                                                                            6 - FA 619 OF 2004.doc



        Digitally
        signed by
        KANCHAN
                                    IN THE HIGH COURT OF JUDICATURE AT BOMBAY
KANCHAN VINOD
VINOD   MAYEKAR
MAYEKAR Date:
        2026.08.08
        15:44:28
        +0530                              CIVIL APPELLATE JURISDICTION

                                            FIRST APPEAL NO. 619/2004

                     UNION OF INDIA                                    ….. APPELLANT

                               VS

                     THE STATE TRADING CORPORATION OF
                     INDIA LTD. & ANR.                                 ….. RESPONDENTS

                     Adv. T. J. Pandian for the Appellant.

                     None for the Respondent.

                                                     CORAM : RAJESH S. PATIL, J.

                                                     DATE     : 31 JULY, 2026

                     P.C. :-

                     1)               This First Appeal has been filed by the Railways,

                     challenging the impugned judgment and order dated 23 July, 2003

                     passed by the Railway Claims Tribunal, Mumbai Bench, Mumbai(for

                     Short ‘The Tribunal’) in Case No. OA 145 of 1990. The respondent –

                     State Trading Corporation had filed a claim petition before the

                     Tribunal alongwith M/s.New India Assurance Company Ltd. for

                     recovery of Rs.67,903/- from the Railways. It was the case of the

                     claimant before the Tribunal that they had entrusted a consignment of

                     Rape Reed oil in tins from New Mulund Goods shed, Mumbai to
KVM
                                    2/3
                                                       6 - FA 619 OF 2004.doc


Asansol. On arrival of the consignment at the destination station, the

respondents observed that there was a shortage.        On the written

request for re-weighing of the consignment, the Railways allowed re-

weighing and a shortage was detected and accordingly shortage

certificates were issued. Based on the shortage certificates, the claim

petition was filed. Written submissions were filed by the Railways.

They admitted the booking particulars but stated that no notice was

served on the respondent – Railways. The issues were framed by the

Tribunal. All the issues were answered in favour of the claimant. The

Tribunal held that notice under Section 78 B of the Indian Railways

Act, 1890 was served on 8 June, 1987. The case of the Railways that

the consignment which was booked with them, the shortage may be

due to leakage owing to knocks or jerks during transit and that it is

not possible for a few railway staff at forwarding station to examine

the condition of tins or to supervise the loading of the consignments

comprising thousands of tins on a single day besides doing the allied

work connected with the booking of the goods.      Hence, the Railways

cannot be held liable.    It was the case of the claimant that the

Railways having issued RRs, they are liable for any shortage at the

time of delivery because the shortage might have been taken place

during the course of     transit.    Therefore, there is negligence or
KVM
                                   3/3
                                                             6 - FA 619 OF 2004.doc


misconduct on the part of the Railways in the carriage of the

consignments.

2)           As per shortage certificates, a total quantity of 6159 kg of

oil was short delivered in this case. As per the case of the claimant,

the affidavit of evidence filed by the Chief Marketing of the

respondent – State Trading Corporation, the value of consignment of

the relevant time was Rs.9.50 per kg. Therefore, the claim was at the

rate of Rs.9.50 per kg and since the total quantity shortage 6159 kg of

oil, the said figure after multiplying Rs.9.50 per kg will be valued at

Rs.58,510.50 paise.

3)           The   Tribunal   allowed    the    claim   at     the     rate     of

Rs.58,510.50 with simple interest at the rate of 6% per annum from

the date of filing of the claim application till the date of the judgment.

4)           Considering the evidence laid down by the claimant and

there being no evidence on behalf of the Railways, I do not find any

perversity in the order dated 23 July, 2003 passed by the Railway

Claims Tribunal, Mumbai Bench, Mumbai in Case No. OA 145 of 1990.

5)           Hence, First Appeal stands dismissed. No costs.



                                               [RAJESH S. PATIL, J.]