HIGH COURT OF CALCUTTA
B. N. Banerjee, Niyogi
INDIAN AIRLINES CORPORATION - Appellant
Versus
KESHAVLAL F. GANDHI - Respondent
Civil Revn. 1345 Of 1958
Decided On : MAY 31, 1961
AIR CARRIER - LIABILITY - CONTRACTUAL LIMITATION - COMMON LAW OF ENGLAND - APPLICABILITY - INDIAN CONTRACT ACT, 1872 - INAPPLICABILITY - CARRIERS ACT, 1865 - INAPPLICABILITY - INDIAN CARRIAGE BY AIR ACT, 1934 - INAPPLICABILITY - CONSIGNMENT NOTE - EXEMPTION CLAUSE - VALIDITY.
Fact of the Case:
The plaintiff, a consignee, sued the defendant, an air carrier, for damages for the loss of torch bulbs during air carriage. The consignment note contained an exemption clause exempting the carrier from liability for any loss or damage whatsoever, including negligence or default of its employees. The trial court decreed the claim, but the defendant's application for a new trial was dismissed by the lower appellate court. The defendant challenged the dismissal order in the High Court.
Finding of the Court:
The High Court held that the relationship between the parties was governed by the common law of England, which permits common carriers to contract themselves out of liability for loss or damage to goods carried. The Court found that the exemption clause in the consignment note was valid and enforceable, and that the plaintiff had contracted himself out of his right to claim damages for the loss of the consignment.
Issues: 1. Whether the common law of England or the Indian Contract Act, 1872 governs the relationship between an air carrier and a consignee in the absence of a specific statute governing air carriage.
Ratio Decidendi: 1. The Court held that the common law of England governs the relationship between an air carrier and a consignee in the absence of a specific statute governing air carriage. The Court reasoned that the Carriers Act, 1865 and the Indian Carriage by Air Act, 1934 were inapplicable to the facts of the case, and that the Indian Contract Act, 1872 did not apply to common carriers.
Final Decision: The High Court made the Rule absolute and directed that the plaintiff's suit be dismissed.
( 1 ) ON October 19, 1953, the defendant Opposite Party no. 2 delivered to the defendant petitioner two package, said to contain 6000 Westing House torch-bulbs, to be carried by air from Bombay to Calcutta, under consignment Note No. Z-077672. The consignee was plaintiff-Opposite party No. 1.
( 2 ) EACH of the two packages contained 3000 pieces of torch-bulbs, in a carton container, wrapped in hessian and bound by iron straps.
( 3 ) THE consignment reached Calcutta on October 21, 1953. But as the consignee-plaintiff failed to take delivery of the consignment on arrival, the same was stored in the godown of the defendant-petitioner and a notice of arrival was sent to the consignee.
( 4 ) ON October 24, 1953, the consignee-plaintiff took delivery of the said two packages and granted a Clear receipt for the same. According to the allegation of the consignee-plaintiff he brought the packages to his shop and on opening one package found that the said did not contain torch bulbs but only old periodicals, news prints, books, cotton, wool, pieces of fire wood and brickbats. The other package was also partly opened and similar materials were found inside. The plaintiff immediately got the packages surveyed by Marine Surveyors, Messrs. Norman Stewart and Co. and intimated the fact of loss of torch bulbs to the defendant No. . 1 petitioner and the defendant No. 2 consignor along with a copy of the survey report of the marine surveyors above-named to the effect that the two packages did not contain torch-bulbs. Thereafter ;here was prolonged correspondence between the plaintiff-opposite party and defendant No. 1--Petitioner at the end of which the defendant No. 1 petitioner repudiated its liability.
( 5 ) ALLEGING that the loss of torch bulbs was due to wilful negligence and default alternatively misconduct on the part of the defendant No. 1, the plaintiff instituted the suit, out of which this Rule arises, claiming damages laid down at Rs. 1877/7 -.
( 6 ) THE claim was contested by the defendant No. 1 mainly on a two-fold ground. It was contended, in the firs; place, that the plaintiff had taken delivery of the packages on clear receipt and upon such delivery the defendant No. 1 ceased to be liable for any loss, alternatively, the defendant No. 1 was not liable, for the loss of the contents of the packages which were not declared nor examined nor checked by the defendant No. 1 and which packages had been delivered in good condition to the plaintiff. It was contended, in the next place, that the packages had been accepted for carriage on the terms printed Overleaf on the consignment note No. Z-O77672, dated 19-10-53 and under those terms the defendant No. 1 could not be made liable.
( 7 ) THE defendant No. 2 by its written statement contended that they had despatched the torch-bulbs in accordance with the order placed by the plaintiff and made Over the same to the carrier and thereafter had no responsibility therefor.
( 8 ) THE trial court decreed the claim of the plaintiff against defendant No. 1 for Rs. 1854/3/-and dismissed the case against defendant No. 2. Thereupon, the defendant No. 1 moved the court below for a new trial under Section 38 of the Presidency Small Causes Court Act for having the judgment entered being set aside and a new and a different judgment being entered in its place. The Court below dismissed the application and affirmed the judgment of the trial court Against the order aforesaid the defendant No. 1 moved this court and obtained this Rule.
( 9 ) WHEN the the Rule came up for hearing before P. N. Mookerjee, J. his Lordship referred the matter to a Division Bench, with the following observations :--"this case, on the extreme contention, raised by Mr. Hoy, that his client can claim absolute exemption from all claims for damages under all circumstances in view of the contract between the parties and in view of the authorities, cited by him, namely, Jellicoe v. The British Indian Steam Navigatio
British India Steam Navigation Co. Ltd. v. Sokkalal Ram Sait
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