UNION OF INDIA vs SRI SARADA MILLS LTD.

The Supreme Court held that the assignment of a mere right to sue is not valid under Section 6(e) of the Transfer of Property Act, 1882, but in this case, the insurance company was entitled to subrogation under Section 79 of the Marine Insurance Act, 1963. The Court ruled that the respondent could maintain the suit against the Railway Administration for damages despite having assigned rights to the insurance company, as the assignment did not divest the respondent of its cause of action. The appeal was dismissed, affirming the High Court's decision that the suit was maintainable.