UNION OF INDIA vs STEEL STOCK HOLDERS' SYNDICATE, POONA

The Supreme Court held that under the Railways Act, 1890, specifically Section 76, damages for delayed delivery are limited to actual loss due to physical deterioration of goods, not loss of profits or market value. The Court clarified that the cause of action arose after the new Act came into force, and thus the respondent's claim for loss of interest on capital was not actionable. The appeal was dismissed, affirming the lower courts' findings that the respondent was entitled to damages for the delay in delivery.