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2000 Supreme(SC) 608

2000(2) Supreme 561
SUPREME COURT OF INDIA
(From National Consumer Disputes Redressal Commission, New Delhi)
S. Saghir Ahmad & D.P. Wadhwa, JJ.
Nath Bros. Exim International Ltd. -Appellant
versus
Best Roadways Ltd. -Respondent
Civil Appeal No. 1 of 1997
Decided on 27-3-2000
Counsel for the Parties :
For the Appellant : Sanjay Kishan Kaul, and B. Chatterjee, Advocates.
For the Respondent : Mukul Rohtagi, Sr. Advocate, S.K. Maniktala, Ejaz Maqbool, B.K. Mishra, Ms. Aparna Jha, Advocates for M/s. Maqbool Mishra & Co., Advocates.

IMPORTANT POINTS
1. Common carrier can limit his liability by a special contract. But the special contract will not absolve the carrier if the damage or loss to the goods, entrusted to him, has been caused by his own negligence or criminal act or that of his agents or servants.
2. Booking of consignment for carriage by common carrier "at owner s risks" does not exempt a carrier from his own negligence or the negligence of his servants or agents.

Headnote:(i) Carriers Act, 1865-Sections 6, 8 and 9-Common carrier-Liability for damage of goods-Extent of-Liability of carrier is that of an insurer and is in absolute terms-Liability can be limited by special contract-Special contract will not absolve carrier if damage or loss has been caused by his own negligence or criminal act or that of his agents or servants.

       Section 6 enables the common carrier to limit his liability by a special contract. But the special contract will not absolve the carrier if the damage or loss to the goods, entrusted to him, has been caused by his own negligence or criminal act or that of his agents or servants. In that situation, the carrier would be liable for the damage to or loss or non-delivery of goods. In this situation, if a suit is filed for recovery of damages, the burden of proof will not be on the owner or the plaintiff to show that the loss or damage was caused owing to the negligence or criminal act of the carrier as provided by Section 9. The carrier can escape his liability only if it is established that the loss or damage was due to an act of God or enemies of the State. (Para 25)

       The liability of a carrier to whom the goods are entrusted for carriage is that of an insurer and is absolute in terms, in the sense that the carrier has to deliver the goods safely, undamaged and without loss at the destination, indicated by the consignor. So long as the goods are in the custody of the carrier, it is the duty of the carrier to take due care as he would have taken of his own goods and he would be liable if any loss or damage was caused to the goods on account of his own negligence or criminal act or that of his agent and servants. (Para 27)

       "Owner s Risk" in the realm of commerce has a positive meaning. It is understood in the sense that the carrier would not be liable for damage or loss to the goods if it were not caused on account of carrier s own negligence or the negligence of its sevants and agents. Booking of goods for carriage "at owner s risks" does not exempt a carrier from his own negligence or the negligence of his servants or agents. (Paras 29 & 31)

       Even if the goods were carried at "Owner s Risk", the carrier would not be fully absolved of his liability to pay compensation if the loss was occasioned on account of his negligence or the negligence of his servants and agents. (Para 37)

       (ii) Carriage Act, 1865-Section 6-Common carrier-Liability for damage/loss of goods-Consignment of silk garments entrusted to carrier to be delivered at Bombay-Goods unloaded at Biwandi and stored in godown-Consignment destroyed by fire at godown-Claim for value of consignment with interest-Defence that consignment diverted to Biwandi at instance of clearing agent of consignor-Genuineness of alleged letter written by clearing agent disputed-National Consumer Redressal Commission rejecting claim holding that no deficiency in service on part of carrier-Held : National Commission had not considered and decided question of genuineness of alleged letter of clearing agent seeking delivery at Biwandi-Matter remanded to National Commission for disposal afresh. (Paras 38 to 40)

       

JUDGMENT

S. Saghir Ahmad, J.-The appellant had booked a consignment of 77 packages of mulberry/natural silk garments with the respondent for being carried from Noida (U.P.) to Bombay to be delivered to M/s. Jeeva & Co., who were the clearing agents of the appellant. The consignment was to be exported to the United Kingdom as the appellant had imported raw silk free of custom duty for manufacture of garments, to be exported back to the United Kingdom. The goods along with copies of Invoice No. NBI-7493 dated 9.3.1994 were entrusted to the respondent who issued Consignment Note No. 52330 dated 11.3.1994 to the appellant. Since the consignment was not delivered at Bombay, the appellant worte a letter to the respondent on 21st of March, 1994 mentioning the non-delivery of consignment. On March 24, 1994, the appellant received a letter dated March 19, 1994 from the respondent through which he came to know that the consignment which was stored at a godown in Bhiwandi was completely destroyed by fire. After serving legal notice on the respondent and after considering its reply, the appellant filed a claim petition before the National Consumer Disputes Redressal Commission, New Delhi (for short, the National Commission ), for recovery of a sum of Rs. 36,12,874.60 along with interest at the rate of 18 per cent per annum besides costs.

2. The case was contested by the respondent who filed a written statement in which it was pleaded that the goods, entrusted to them, were carried by them with due care and were stored in a godown at Bhiwandi on the instructions of the consignee, M/s. Jeena & Co., who had indicated in their letter dated 14.3.1994 that since the shipment was to take place from C.F.S. Kalamoli, the consignment may be unloaded at Bhiwandi. The respondent further pleaded that there was no negligence on their part nor was there any deficiency in service. It was stated that the fire had suddenly broken out in the adjacent warehouse from where it spread to the godown where the appellant s consignment was kept and, therefore, that consignment was also destroyed. The respondent also pleaded that the goods were carried at "OWNER s RISK" and since special premium was not paid, they were not responsible for the loss caused by fire. The National Commission by the impugned judgment dated September 2, 1996, dismissed the claim.

3. Learned counsel for the appellant has contended that the respondent is a carrier within the meaning of Carrier Act, 1865 and, therefore, he is liable for non-delivery of goods to the consignee at the destination indicated to them. It is contended that non-delivery is indicative of the negligence on the part of the respondent and, therefore, the National Commission was not justified in rejecting the claim petition on the ground that the goods were destroyed by fire. It is also contended that the goods, having been entrusted to the respondent, for delivery to M/s. Jeena & Co. at Bombay, could not have been diverted for being unloaded at Bhiwandi, or stored there. In any case, since the goods were stored in a godown which was adjacent to another godown in which highly combustible articles were kept by a third person who owned that godown, the respondent was clearly negligent in keeping the consignment in question, which consisted of the silk garments, in that godown so as to expose them to fire which ultimately engulfed not only the godown where the combustible material was kept but also the adjacent godown where the appellant s goods were negligently stored. The findings recorded by the National Commission that the goods were diverted at the instance of M/s. Jeena & Co. for unloading at Bhiwandi, have also been assailed.

4. Learned counsel for the respondent has, on the other hand, contended that the goods were entrusted to the respondent for being carried from Noida (U.P.) to Bombay at "OWNER s RISK" as the appellant had not agreed to pay higher freight, as indicated in the terms of contract and was content with































































































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