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Issues: Whether the word "loss" in S. 77 of the Indian Railways Act, Act 9 of 1890 includes non-delivery and misdelivery of goods so as to require prior written notice, and whether the notice period runs from the date of entrustment of the goods to the railway.
Analysis: The section requires a claim for compensation to be preferred in writing within six months from the date the goods are delivered to the railway for carriage. The object of the provision is to give the railway prompt notice so that the loss or shortage may be investigated while the facts are still fresh. The word "loss" was construed in its plain and natural sense and not in a restricted sense confined to total disappearance of goods. On that construction, loss includes loss to the owner by non-delivery, misdelivery, conversion, or shortage in transit. The authorities were reviewed, and the wider interpretation was preferred as being consistent with the language and purpose of the section.
Conclusion: Prior written notice under S. 77 was mandatory, the six-month period had to be computed from entrustment of the goods to the railway, and the suit failed for want of such notice.
Final Conclusion: The revision was allowed, the decree of the court below was set aside, and the plaintiff's claim was dismissed for non-compliance with the statutory notice requirement.
Ratio Decidendi: Under S. 77 of the Indian Railways Act, "loss" includes non-delivery and misdelivery, and a claim for compensation is barred unless written notice is given within six months from the date the goods are handed over to the railway for carriage.