Negligent dispatch of dividend warrant by ordinary post justified damages, but delay alone did not support interest on the amount.

Delay in issuing a fresh dividend warrant did not by itself justify interest where the original warrant was not received and the issuer was entitled to seek an indemnity bond before reissuing it, so the interest claim failed. Sending a dividend warrant above the prescribed limit by ordinary post, however, amounted to negligence because it should have been sent by registered cover, and the resulting loss justified damages. The appeal therefore succeeded only to the limited extent of compensation for negligent dispatch, with damages of Rs. 500 awarded, while the claim for interest was rejected.

---

---

Issues: (i) whether the appellant was entitled to interest on the delayed dividend warrant amount; (ii) whether the opposite party was liable in negligence for sending the warrant by ordinary post and, if so, what relief followed.

Issue (i): whether the appellant was entitled to interest on the delayed dividend warrant amount.

Analysis: The delay occurred because the warrant was not received and, in the circumstances, the opposite party was justified in seeking an indemnity bond before issuing a fresh warrant. The delayed payment was not treated as making the opposite party liable for interest on the dividend amount.

Conclusion: The claim for interest was rejected and was decided against the appellant.

Issue (ii): whether the opposite party was liable in negligence for sending the warrant by ordinary post and, if so, what relief followed.

Analysis: The warrant, being for an amount above the prescribed limit, ought to have been sent by registered cover. Sending it by ordinary post amounted to negligence and caused loss to the appellant.

Conclusion: The opposite party was held liable to pay damages of Rs. 500 to the appellant.

Final Conclusion: The appeal succeeded only to the limited extent of compensation for negligent dispatch of the warrant, while the claim for interest failed.

Ratio Decidendi: Where a dividend warrant is required to be sent by registered post but is sent by ordinary post, resulting in loss to the recipient, the issuing party may be liable for damages, but not necessarily for interest on the delayed amount where the delay is otherwise explained and an indemnity bond is legitimately sought.

---