From statement I:
The engine trouble developed after travelling 40 km, and speed dropped to $\dfrac{1}{4}$th of original.
But no information is given about the time or original speed.
Hence, Statement I alone is not sufficient.
From statement II:
We know the train took 2 hours to travel 40 km before the breakdown.
So, original speed = $\dfrac{40}{2} = 20$ km/hr.
Post that, the speed became $\dfrac{1}{4} \times 20 = 5$ km/hr.
But this statement does not mention how much distance was left to be covered at reduced speed.
So Statement II alone is also not sufficient.
Combining I and II:
- We get that 40 km was travelled in 2 hours at 20 km/hr.
- After that, the remaining distance (say $x$ km) was travelled at 5 km/hr.
- Total delay was 40 minutes or $\dfrac{2}{3}$ hour.
Let total distance be $D$ km.
\[
D = 40 + x
\]
Time taken to travel $x$ km at reduced speed: $\dfrac{x}{5}$ hours
Time taken if there was no breakdown: $\dfrac{D}{20} = \dfrac{40 + x}{20}$ hours
Total time with breakdown: $2 + \dfrac{x}{5}$
\[
\text{Delay} = \left(2 + \dfrac{x}{5}\right) - \dfrac{40 + x}{20} = \dfrac{2}{3}
\]
Solving this equation gives value of $x$, hence $D$ can be calculated.
Thus, both statements together are sufficient.