JUDGMENT R.K. Verma, J. 1. This is an appeal filed by the appellant-plaintiff against the judgment and decree passed by the First Additional District Judge, Mandsaur in Civil Suit No. 1-B/ 1977 dated 14.8.1978 hereby the learned Trial Court while decreeing the suit to the extent of cost price of the goods despatched to the consignee plaintiff but not delivered to him, has disallowed the claim for damages and interest. 2. The facts giving rise to this appeal, briefly Stated, are as follows: A consignment of 483 bags of cement as despatched from Jhukehi Rail ay Station (Kymure siding) on 29th March, 1976 to Mandsaur in the name of the plaintiff's firm. The said consignment as expected to reach destination within a fortnight but the consignment as never delivered to the consignee. The defendant Railways Administrationent on corresponding it the plaintiff for considering the plaintiff's claim on account of non-delivery of the consignment, but did not allow the claim of the plaintiff and as such, the plaintiff filed the instant suit claiming Rs. 11, 559.08. After trial of the suit, the learned Trial Court has a warded only Rs. 6, 996.08 inch includes Rs. 6, 976.58 as cost price of the lost consignment of cement bags and Rs. 19.50 as notice charges. The learned Trial Court, ho ever, dismissed the plaintiff s claim for damages and interest. The appellant - plaintiff, therefore, has filed this appeal. 3. The learned Counsel for the appellant-plaintiff has at the out-set submitted that although, in the plaint the plaintiff had claimed relief of damages for the loss of profit and in the alternative for interest, the relief of damages for loss of profit may not be admissible on account of Section 78-B of the Indian Railways Act and as such, he does not press for damages. But it has been urged that the learned Trial Court has committed an error in not allowing interest though claimed. 4. In connection with the claim of interest learned Counsel for the appellant has submitted that the defendant is able to pay interest at the rate higher than 6% per annum as per proviso to Section 34 since the defendant's liability in relation to the sum of Rs. 6, 976.58 adjudged as the cost price of the lost goods had arisen out of a commercial transaction. 6, 976.58 adjudged as the cost price of the lost goods had arisen out of a commercial transaction. It has been submitted that the consignment of goods in question as expected to be delivered by the Rail ay Administration to the plaintiff at Mandsaur about a fortnight after its booking at Kymore on 29.3.76 but it as never delivered and, therefore, the interest shall be payable from the expected date of delivery till payment of the principal amount i,e, the cost price of the goods. It has been submitted that the interest should be a warded for the period commencing from the date hen the consignment of goods in question as expected to be delivered at Mandaur i.e. The mid April, 1976 to the date of payment of the principal sum of Rs. 6, 976.58 in execution of the decree under appeal. 5. Learned counsel appearing on behalf of the respondent has, in reply, submitted that the liability of the Rail ay Administration to pay the cost price of the goods on account of non-delivery cannot be said to have arisen out of a commercial transaction so as to attract the proviso to Section 34 of the Code of Civil Procedure answers such, the rate of interest payable cannot exceed 6% per annum as per Section 34(1) of the Code. 6. Section 34 of the Code provides that here a decree is for payment of money the court may order interest at such rate as the court deems reasonable to be paid on the principal sum adjudged from the date of the suit to the date of the decree in addition to the interest adjudged on such principal sum for any period prior to the institution of the suit with further interest at such rate not exceeding 6% annum as the court deems reasonable on such principal sum, from the date of the decree to the date of payment. The said precision is, ho ever, subject to the provision that here the liability in releation to the principal sum adjudged had arisen out of a commercial transaction the rate of such further interest may exceed 6% per annum but shall not exceed the contractual rate of interest or here there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to a commercial transaction. 7. 7. A commercial transaction for the purpose of Section 34 has been defined in Explanation II to that Section as under: ...a transaction is a commercial transaction, if it is connected with the industry, trade or business of the party incurring the liability. 8. Carriage of goods of payment of freight is obviously a trade or business in which the Rail ay Administration is engaged in on the commercial side and as has been submitted by the learned Counsel for the appellant the Chief commercial superintendent of Railways in-charge of the commercial activity of carriage of goods on payment of freight to the Rail ay Administration, consequently, the suit transaction of carriage of goods on payment of freight must be held to be a commercial transaction. As such the liability arising on account of non-delivery of the goods consigned, arises out of commercial transaction to which the proviso to Section 34 of the Code would, in my opinion, squarely apply. Therefore, the rate of interest payable can exceed 6% but shall not exceed the Bank rate at which moneys are advanced by nationalised Banks in relation to commercial transactions. 9. In the circumstances, I deem it reasonable to order interest @ 9% per annum to be paid on the principal sum i.e. the cost price of Rs. 6,967.58 from 15th April, 1976 hen the consignment as expected to be delivered to the plaintiff but not delivered, to the date of the payment of the said principal sum in execution of the decree under appeal. 10. Accordingly, this appeal is partly allowed. The decree of the learned Trial Court shall stand modified inasmuch as the respondent-defendant shall, in addition to the decretal amount, pay to the plaintiff interest on the principal sum of Rs. 6, 976.58 @ 9% per annum from 15 April. 1976 till the date of payment of the principal sum in execution of the decree. There shall, ho ever, be no orders as to costs of this appeal.