Appeal No 1367 of 1968
Appeal by Special Leave from the Judgment and Order dated 25 3 1965 of the Kerala High Court in AS No 487 of 1961
SV Gupte and KMK Nair for the appellant
Mrs Shyamla Pappu BB Sawhney Raju Ramachandran and Girish Chandra for the respondent
420 The Judgment of the Court was delivered by KHANNA J
This appeal by special leave by the State of Kerala is against the Full Bench decision of the Kerala High Court affirming on appeal the judgment and decree of the trial court whereby the suit for recovery of Rs 2820870 filed by the appellant against the General Manager Southern Railway respondent was dismissed
The appellant booked 2000 tons of rice in 21310 bags from Bareilli railway station for being transported to Trivandrum central railway station as per 10 railway re ceipts during the period from June 25 to July 5 1950
According to the case of the appellant the rice delivered at Trivandrum central railway station was short by 79378 lbs
It was also averred that the rice in 327 bags was found to be damaged
The appellants accordingly claimed Rs 2820870 as damages from the respondent
The respondent resisted the claim of the appellant inter alia on the ground that the suit was not maintainable as the Union of India had not been impleaded as a defendant to the suit and that a suit by a State against the Union of India could be instituted only in the Supreme Court of India under article 131 of the Constitution
It is not necessary to set out the other pleas of the respondent
As many as nine issues were framed by the trial court
Two of the issues namely issue Nos 1 and 3 were treated as prelimi nary issues and arguments were heard on those issues
Issue Nos 1 and 3 read as under 1
Is the suit maintainable  Can a decree be passed against the defendant as now impleaded  2
Will the suit lie in this Court  Is the suit barred by the provisions of the Constitution of India  On issue No 3 it was held by the trial court that since the Union of India had not been made a party to the suit clause a of article 31 of the Constitution had no application
The suit was accordingly held to be not liable to be dis missed on that ground
On issue No 1 the trial court held that the Union of India was a necessary party to the suit and as the Union of India had not been impleaded as a party the suit was incompetent
As a result of its find ings on issue No 1 the trial court dismissed the suit
The decision of the trial court on issue No 1 was affirmed in appeal by the High Court
An application was also filed at the hearing of the appeal before the High Court for implead ing the Union of India as a party to the suit
The High Court rejected that application on the ground that no useful purpose would be served by allowing that application
It was observed that if the application was allowed and the Union of India was made a party the suit would have to be dismissed as under article 131a of the Constitution a suit by one State against the Union of India could only lie in the Supreme Court
In the result the High Court dismissed the appeal filed by the appellant
In appeal before us Mr Gupte on behalf of the appel lant has invited our attention to the definition of railway administration in 421 section 36 of the Indian Railways Act 1890 Act 9 of 1890 hereinafter referred to as the Act which reads as under railway administration or administration  in the case of a railway administered by the Government means the Manager of the railway and includes the Government and in the case of a railway adminis tered by a railway company means the railway company He has further referred to sections 72 74 76 and 80 of the Act
According to section 72 the responsibility of a railway administration for the loss destruction or dete rioration of animals or goods delivered to the administra tion to be carried by railway shall subject to other provi sions of the Act be that of a bailee under sections 151 152 and 161 of the 
Section 74 absolves the railway administration of any responsibility for the loss destruction or deterioration of any luggage belonging to or in charge of a passenger unless a railway servant has hooked and given a receipt therefor
Section 76 deals with burden of proof in suits for compensation against a railway administration for any delay loss destruction deterioration or damage
Section 80 at the relevant time read as under 80
Suits for compensation for injury to throughbooked traffic
Notwithstanding anything in any agreement purporting to limit the liability of a railway administration with respect to traffic while on the railway of another administration a suit for compensation for loss of the life of or personal injury to a passenger or for loss de struction or deterioration of animals or goods where the passenger was or the animals or goods were booked through over the railway of two or more railway administrations may be brought either against the railway administration from which the passenger obtained his pass or purchased his tick et or to which the animals or goods were deliv ered by the consignor thereof as the case may be or against the railway administration on whose railway the loss injury destruction or deteriora tion occurred
 It is urged by Mr Gupte that as according to section 3 6 of the Act railway administration means a Manager of the railway and as some of the sections 72 to 80 make ex press reference to suits against railway administration a suit against the General Manager of the railway concerned is competent
The trial court and the High Court according to the learned counsel were in error in holding that the suit was not maintainable because of the Union of India having not been impleaded as a party to the suit
The above argument has the quality of being ingenious attractive and not lacking in apparent plausibility
A closer examination however reveals its infirmity and after giving the matter our earnest 422 consideration we find it difficult to accept it
The Act deals with and specifies inter alia the rights and liabil ities which arise in case the goods consigned to the rail ways are not delivered to the consignee
It likewise deals with short delivery of those goods as well as the cases in which the goods get damaged during transit
Most of the railways in India are owned by the Union of India but there were some minor railways which till recently were owned by railway companies
The definition of railway administra tion as given in section 36 is comprehensive and deals with both types of railways
ie railways administered by the Government as well as those administered by railway companies
The words railway administration have been used in sections 72 to 80 because those sections pertain to rights and liabilities of the parties in both types of cases ie cases where liability is incurred by Government administered railways as well as cases in which liability is incurred by railway administered by railway company
The Act however does not deal with the question as to who should be impleaded as a defendant when a suit is brought against the railway
administration
This is essentially a matter relating to the frame of suits and is dealt with by the Code of Civil Procedure
According to section 79 of the Code in a suit by or against the Government the authority to be named as plaintiff or defendant as the case may be shall be a in the case of a suit by or against the Central Government the Union of India and b in the case of a suit by or against a State Government the State
This section is in accordance with article 300 of the Constitu tion according to which the Government of India may sue or be sued by the name of the Union of India and the Government of a State may sue or be sued by the name of the State
It is not disputed that Southern Railway is owned by the Union of India
As such a suit dealing with the alleged liabili ty of that railway should have been brought against the Union of India
Section 80 of the Code of Civil Procedure provides inter alia that no suit shall be instituted against the Government until the expiration of two months next after the notice in writing has been delivered to or left at the office of in the case of a suit against the Central Government where it relates to a railway the General Manager of that railway
The above provision clearly contemplates institution of a suit against the Central Government even though it relates to a railway
A suit against the Central Government in terms of section 79 of the Code would necessarily have to be brought against the Union of India
The Act no doubt makes provision for the liability of the railway administration but from that it does not follow that the railway administration is a separate legal entity having a juristic personality capable of being sued as such
The definition of railway administration in section 36 of the Act that it would mean the Manager of the railway does not warrant the inference that a suit against the railway administration can be brought against the Manager of that railway
We have to bear in mind the distinction between the owner of the railway namely the Union of India and the authority which actually runs the railway and to whom duties have been assigned for 423 this purpose by the Act
The manager of the railway under the Act is such authority
When however liability is sought to be fastened on the railway administration and a suit is brought against it on that account the suit in our opinion would have to be brought against the Union of India because it is the Union who owns the railway and who would have the funds to satisfy the claim in case decree is awarded in such suit
The scheme of the Act even though there are now hardly any company owned railways in India is to treat different railway administrations as different units although all of them may be owned by the Union of India
Neither the defi nition of the railway administration in section 36 of the Act nor the language of sections 72 to 80 of the Act lends support for the view that the railway administrations are to be treated as separate personalities entities or separate juridical persons as seems to have been observed in the case of Dominion India vs Firm Museram Kishunprasad1
Yet the treatment of the different railway administrations as different units for the purpose of fastening liability on the Union of India has got significance and relevance
Viewed in that light it would follow that the definition of the railway administration given in section 36 of the Act does not make the railway administration or its General Manager a legal entity or a corporate body or a juridical person to represent the railway administration as such in suits
The claim in a suit for recovery of money under the Act against the different railway administrations owned by the Central Government in accordance with the general prin ciple of law contained in Order 1 Rule 3 of the Code of Civil Procedure has got to be made against the person against whom the right to relief is alleged to exist
The significance of creating the various railway administra tions as separate units even though they may be State owned is to be found in section 80 of the Act and section 80 of the Code of Civil Procedure
For claiming a decree against the Union of India under the Act the plain tiff has got to specify the railway administration or admin istrations on account of which liability is sought to be fastened upon the Union of India as contemplated by section 80 of the Act
The institution of the suit has to be preced ed by service of notice under section 77 of the Act and section 80 of the Code to the appropriate authority which is the General Manager of the railway concerned
The require ment of clause b of section 80 of the Code that a notice in the case of a suit against the Central Government where it relates to a railway must go to the General Manager of the concerned railway or railways is also based upon the assumption that it is primarily the liability of the railway administration of the said railway or railways to satisfy the claim of the suitor in accordance with section 80 of the Act
The demarcation of the different State owned railways as distinct units for administrative and fiscal purposes cannot have the effect of conferring the status of juridical person upon the respective railway administrations or their General Managers for the purpose of civil suits
1 AIR 1950 Nagpur 85
11 1104SCI76 424 The Bombay High Court in two cases Sukhanand Shamlal vs Oud h  Rohilkhand Railway1 and Hirachand Succaram Gandhy  Ors
GIP Railway Co2 has held that a suit against a State railway should be brought against the Government
Similar view was pressed by Patna High Court in Shaikh Elahi Bakhsh vs
EI Railway Administration3 and a Full Bench of Assam High Court in the case Chandra Mohan Saha  Anr
vs Union of India  Anr4 The observations of a Division Bench of the Madras High Court in the case of PR Nara yanaswami lyer  Ors
vs Union of India5 also lend support to the above view
It may be stated that the reasoning employed in the eases mentioned above was different and not identical but whatever might be the nature of that reason ing the fact remains that the learned Judges deciding those cases were all at one on the point that such a suit should be brought against the Government which means in the present case the Union of India
Any contrary view would be against the well established practice and procedure of law as evidenced by various decisions of the High Courts and as such must be rejected
Submission has also been made on behalf of the appellant that the High Court should have allowed the appellant to amend the plaint
We agree with the High Court that the present is not an appropriate case in which permission to amend the plaint should have been granted
The appeal consequently fails and is dismissed but in the circumstances without costs
M R Appeal dismissed
1 AIR 1924 Bombay 306
2 AIR 1928 Bombay 421
3 A IR 1931 Patna 326
4 5 AIR 1960 Madras 58


Summary:
The appellant booked rice for being transported by train from Bareilly railway station to Trivandrum railway station
On delivery the rice was found to be damaged and short in quantity
The appellant claimed damages from the respondent who resisted the claim on the grounds that the suit was not maintainable as the Union of India had not been impleaded as a defendant and that a suit by a State against the Union of India could only be instituted in the Supreme Court under article 131 of the Constitution
The suit was dismissed by the Trial Court and an appeal from it was dismissed by the High Court
Dismissing the appeal the Court HELD The Southern Railway is owned by the Union of India
As such a suit dealing with the alleged liability of that railway should have been brought against the Union of India
Section 80 of the CPC contemplates institution of a suit against the Central Government even though it relates to a railway
422 E FI Sukhanand Shamlal vs Oudh Rohilkhand Railway AIR 1924 Born
306 Hirachand Succaram Gandhy  Ors
GIP Rail way Co AIR 1928 Born
421 Shaikh Elahi Bakhsh vs
EI Railway Administration AIR 1941 Patna 326 Chandra Mohan Saha  Ant
vs Union of India  Anr
and PR Narayanaswami lyer  Ors
vs Union of India AIR 1960 Madras 58 Approved
2 Neither the definition of the railway administra tion in Section 36 of the Indian Railways Act nor the language of sections 72 to 80 of the Act lends support for the view that the railway administrations are to be treated as separate personalities entries or separate juridical persons
423 B C Dominion of India vs Firm Musaram Kishunprasad AIR 1950 Nagpur 85
overruled
3 The demarcation of the different State owned rail ways as distinct units for administrative and fiscal pur poses cannot have the effect of conferring the status of juridical person upon the respective railway administrations or their General Managers for the purpose of civil suits