UNION OF INDIA vs WEST PUNJAB FACTORIES LTD.

The Supreme Court held that under Section 72 of the Indian Railways Act, the consignor retains ownership of goods until proven otherwise, allowing the consignor's suit for damages to proceed. The Court found that the risk remained with the consignor as the delivery was not completed, thus the first suit was maintainable. The Court also upheld the calculation of damages based on market rate, affirming that interest could be awarded for the period before the suit was filed, as the goods were still under the railway's control at the time of the fire.