UNION OF INDIA AND ANOTHER vs LADU LAL JAIN

The Supreme Court held that the Union of India, while running railways, is engaged in a business activity as defined under Section 20 of the Code of Civil Procedure, 1908. The Court ruled that the location of the railway headquarters at Pandu within the jurisdiction of the Subordinate Judge at Gauhati grants the court jurisdiction to entertain the suit for recovery of goods. The Court clarified that the nature of the activity determines its character, and the government’s motive or profit element does not alter this classification.