A.S. No. 1183 of 1994. Case: Shipping Corporation of India Vs Modern Re-Rollers. High Court of Madras (India)
| Case Number | A.S. No. 1183 of 1994 |
| Counsel | For Appellant: Shri K. Bijaisundar, Adv. and For Respondents: Shri S.K. Krishnamurthy, Adv. |
| Judges | R.S. Ramanathan, J. |
| Issue | Indian Contract Act - Section 230 |
| Citation | 2014 (303) ELT 63 (Mad) |
| Judgement Date | September 17, 2013 |
| Court | High Court of Madras (India) |
Judgment:
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The first defendant in O.S. No. 6272 of 1984, on the file of III Assistant Judge, City Civil Court, Chennai, is the appellant herein.
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The first respondent/plaintiff filed the above suit for recovery of Rs. 56,224/- from the appellant/first defendant and the second respondent/second defendant, for the loss caused due to the short delivery of the goods.
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The Trial Court, by its judgment, dated 24-3-1987 decreed the suit. Aggrieved by the same, the present was filed.
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The case of the plaintiff/first respondent, is as follows:-
(i) On 29-3-1983, 4,16,810 metric ton of Iron were shipped through the Vessel, named "Vishva Pankaj", owned by the appellant/first defendant from Antwerp Port to the Madras Port Trust. The appellant/first defendant also issued a Bill of lading, bearing No. 501, dated 29-3-1983, acknowledging the entrustment of goods in good condition, undertaking to deliver the same at Madras Port Trust. The said consignment was insured with the second respondent/second defendant/Insurance Company, under a Policy, bearing No. 10307, dated 3-3-1983. The said Vessel arrived at the Port of Madras, on or about 2-5-1983, and commenced unloading operations. The clearing and forwarding agents of the plaintiff''s filed their import Application No. 91/95, dated 18-5-1983, and took delivery of 3,99,240 kgs of the consignment originally entrusted with the carrier at the Port of loading as against the total weight of 4,16,810 kgs. The Madras Port Trust issued a certificate of weighment, dated 1-6-1983, confirming the weight of the goods delivered to the first respondent/plaintiff.
(ii) Thus, the appellant/first defendant short delivered 17.570 metric ton of the suit consignment, and therefore, the first defendant has committed breach of contract of affreightment, as evidenced by the Bill of lading. As a result of short landing of goods, the plaintiff suffered pecuniary loss of Rs. 56,224/-. On 25-8-1983, the plaintiff filed a claim for a sum of Rs. 56,224/- on the defendants. The first defendant, by their letter, dated 24-9-1983, repudiated the claim. The second defendant also by their letter, dated 7-9-1983, repudiated the claim of the plaintiff as untenable and false. As the insurance policy covers the loss of goods, out of theft, pilferage and non-delivery as such, the second defendant, as Insurer is liable to indemnify the loss caused to the plaintiff. Hence, the suit was filed for recovery of Rs. 56,224/- with interest at the rate of 12% p.a. from the defendants.
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The appellant/first defendant has filed a written statement, wherein, it has been stated as follows:-
(i) The suit is barred by limitation. Neither the first defendant, nor, its agents were aware of the weight of the cargo entrusted with them and only on the basis of the declaration given by the consignor, the Bill of lading was issued to the plaintiff, and therefore, the first defendant is not liable for the short delivery. If at all, there was any theft, or, pilferage, that must have occurred only after the Vessel reached the Madras Port Trust, and liability, if any, has become extinguished by reason of the provisions of the Article 3, Rule 6 of the Carriage of Sea Goods Act. Further, no personal decree can be passed against the first defendant in view of the provisions of Section 230 of the Indian Contract Act.
(ii) It is further...
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