Andhra Pradesh High Court
Judges : Tarun Chatterjee, R.V.Raveendran
TRANSPORT CORPORATION OF INDIA LIMITED - Appellant
Versus
VELJAN HYDRAIR LIMITED - Respondent
Decided On : 02/22/2007
Appeal (Civil) 3096 Of 2005
Carriers Act, 1865 – Consumer Protection Act, 1986 – Section 24a – Consignment – Appeal against order – Appellant is a common carrier as defined in Carriers Act, 1865 – Respondent entrusted a consignment (an Hydraulic Cylinder) measuring 2700 kg, covered by sale invoice Appellant for transportation from Patancheru to Bharuch, consignee being "self " – Appellant issued Consignment Note/lorry Receipt to Respondent in that behalf, wherein declared value of consignment was shown as Rs. 583440/=. As M/s Prakash Industries Ltd. , customer for whom consignment was intended was not in a position to clear consignment, Respondent, by letter instructed appellants Patancheru Branch to re- book consignment from Bharuch to Patancheru – For this purpose, respondent enclosed original (consignees copy) of lorry receipt as also its invoice with the letter – Held, Therefore, when goods are not delivered, there is a deficiency of service – It is no doubt true that service for purposes of CP Act does not include rendering of service free of charge – Where contract for transportation is for a consideration (freight charge), mere fact that such consideration is not paid, would not make service free of charge – There is difference between contract without consideration, and contract for consideration, which is not paid – If there is non-payment of freight lawfully due, carrier may sue for charges, or withhold consignment and call upon owner/consignor/consignee to pay freight charges and take delivery, or on failure to pay freight charges, even sell goods with due notice to recover its dues, where such right is available – But where common carrier has misplaced or lost goods and, therefore, not in a position to deliver goods, it obviously cannot demand the freight charges, nor contend that non-payment of freight charges exonerates it from liability for loss or non-delivery – When carrier informs that consignment is not traced and is under process of being traced, obviously owner/consignor/consignee cannot be expected to pay freight charges – In circumstances, third point is also answered against appellant – State Commission ought to have awarded entire cost of consignment – It committed an error in deducting freight charges from amount payable to respondent – There was no liability to pay freight charges where consignment is lost or where there is non-delivery – Order accordingly.
( 1 ) THIS appeal is directed against the order dated 11. 8. 2004 of the National Consumer Disputes Redressal Commission ('national Commission' for short) affirming the order dated 14. 6. 2004 passed by the Andhra Pradesh State Consumer Disputes Redressal Commission ('state Commission' for short ).
( 2 ) THE appellant is a 'common carrier' as defined in the Carriers Act, 1865 ('act' for short ). The respondent entrusted a consignment (an Hydraulic Cylinder) measuring 2700 kg, covered by sale invoice dated 30. 4. 1996 to the Appellant for transportation from Patancheru to Bharuch, the consignee being "self. " The Appellant issued Consignment Note/lorry Receipt dated 10. 5. 1996 to the Respondent in that behalf, wherein the declared value of the consignment was shown as Rs. 583440/=. As M/s Prakash Industries Ltd. , Bharuch, the customer for whom the consignment was intended was not in a position to clear the consignment, the Respondent, by letter dated 8. 11. 1996 instructed appellant's Patancheru Branch to re- book the consignment from Bharuch to Patancheru. For this purpose, the respondent enclosed the original (consignee's copy) of the lorry receipt as also its invoice dated 30. 4. 1996, with the letter dated 8. 11. 1996. The respondent assured that they will clear all dues including up and down freight charges at appellant's Patancheru office. In view of it, the appellant's Patancheru Branch instructed its Baruach Branch by letter dated 14. 11. 1996 to rebook the consignment and endorsed a copy of the said communication to the Respondent. The appellant sent a letter dated 22. 11. 1996 instructing the respondent to send the consignee copy with all freight and demurrage charges by a Demand Draft to the Bharuch office to enable the Bharuch office to re-book the consignment to Patancheru. The Respondent approached the appellant's Patancheru office several times and explained that it had already furnished the consignee copy and that it had also assured that payment will be made at Patancheru, and therefore, the consignment should be re-booked. Finally the Appellant's Patancheru office informed Respondent that the consignment was re-booked vide LR No. 21401 dated 22. 1. 1997 from Bharuch to Patancheru. As there was no information about the arrival of goods at Patancheru, inspite of constant follow up, the respondent sent letters dated 8. 8. 1998, 13. 10. 1998,
7. 11. 1998 and 8. 12. 1998 to the appellant, calling upon it to locate the consignment and deliver it, making it clear that if the consignment was not delivered, it will claim Rs. 5, 83, 440/- being the cost of the consignment. Respondent also stated that it will not pay any charges for the consignment. The appellant sent a reply dated 15. 12. 1998 stating that "the matter is under process to locate the goods" and requested the respondent to "bear" with it for some more time to enable it to revert back with reference to the status of the matter. This was followed by letter dated 21. 6. 1999 wherein the appellant assured the respondent that "the matter is under inquiry" and that the status of the consignment will be confirmed within a short while. By another letter dated 3. 7. 1999, the appellant informed that "the process of locating the goods is going on" and requested the respondent to furnish another copy of the invoice as also the sketch of the machine. The respondent's Senior Officer, Marketing, (Sri Sriramamurthy) visited the appellant's office and furnished them. Even thereafter, the consignment was not delivered. Therefore, after serving a notice dated 27. 10. 2000, through counsel, demanding payment, the respondent filed a complaint before the District Forum on 5. 7. 2001, alleging that the non-delivery of consignment amounted to deficiency of service and therefore, the appellant was liable to pay Rs. 5, 83, 440, being the cost of consignment with interest at the rate of 24% per annum from 8. 11. 1996 as damages for deficiency of service. Su
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