NEW INDIA ASSURANCE CO. LTD vs UNION OF INDIA .

The Supreme Court held that under the Carriers Act, 1865, the insurer, New India Assurance Co. Ltd., has the right to sue for recovery of damages for loss of goods during transit, despite the railway administration's claim of ownership by the consignee, Bihar State Electricity Board. The Court emphasized that the consignee had authorized the insurer to recover damages, thus establishing the insurer's standing to sue. The appeal was allowed, reversing the Karnataka High Court's decision and reinstating the trial court's decree in favor of the insurer for Rs. 1,97,864/- with interest.