HIGH COURT OF CALCUTTA
G. K. Mitter
B. R. HERMAN AND MOHATTO (INDIA) PR. LTD. - Appellant
Versus
SWEDISH EAST ASIA CO. LTD. - Respondent
Suit 1273 Of 1957
Decided On : APRIL 29, 1959
BILL OF LADING - STAY OF SUIT - DISPUTE ARISING UNDER BILL OF LADING TO BE DECIDED IN SWEDEN ACCORDING TO SWEDISH LAW - CONVENIENCE OF FORUM - SUIT DISMISSED.
Fact of the Case:
Plaintiff filed a suit against the defendant, a Swedish company, for non-delivery of 14 bundles of M.S. Flats out of a consignment of 1034 bundles shipped from Sweden to Calcutta. The bill of lading contained a clause stating that any dispute arising under it was to be decided in Sweden according to Swedish law.
Finding of the Court:
The court held that the proper test in a case like this is whether the dispute properly relates to the courts in Sweden. Considering the facts and circumstances of the case, particularly the defense raised by the defendant, the court found that a Swedish court, even if it had jurisdiction, would not be the forum convenient for the suit.
Issues: 1. Whether the dispute properly relates to the courts in Sweden? 2. Whether a Swedish court would be the forum convenient for the suit?
Ratio Decidendi: The court reasoned that the bulk of the evidence would be available in Calcutta, including witnesses from the Sea Customs authorities, Calcutta Port authorities, Stevedores, and the plaintiff's Clearing Agents. The court also noted that the defendant's defense was that all the bundles of M.S. Flats were landed in Calcutta, and if proven, the plaintiff's suit would likely be dismissed.
Final Decision: The court dismissed the defendant's application for a stay of the suit, holding that the convenience of the forum favored the suit being tried in Calcutta.
( 1 ) THIS is an application for stay of a suit under a clause contained in a bill of lading reading "any dispute arising under this bill or lading is to be decided in Sweden according to Swedish Law. "
( 2 ) THE dispute relates to a shipment of 1034 bundles of M. S. Flats shipped by A. B. Cottrain of Stockholm, Sweden on April 28, 1956. The goods were loaded at Gothenburg in Sweden on the ship "kyoto" belonging to the Swedish East Asia Co. Ltd. , described in the plaint as a limited liability company incorporated under the appropriate laws of Sweden and having its office at Gothenburg in Sweden outside the jurisdiction of this court and carrying on business through its agent United Liner Agencies of India (Private) Ltd. at No. 18, Brabourne Road, Calcutta within the jurisdiction of this court. The bill of lading is dated April 28, 1956. The ship reached Calcutta within a few weeks thereafter. The plaintiffs complaint is that it received only 1020 bundles out of the consignment and the defendant failed and neglected to deliver the balance of 14 bundles of M. S. Flats. The plaintiff claims to be the endorsee of the bill of lading which contains the usual clause with regard to shipment that the particulars of weight, description etc. given thereon were furnished by the shipper, the goods being described as M. S. Flats untested Thomas quality 50 x 12 in lengths of 8' x 11" and multiples thereof with tolerance 5". the gross weight being 1458. 780 Kos. They were described as shipped on board in apparent good order and condition unless otherwise stated and were to be discharged at the port of discharge or so near to there as the vessel may safely get and be always afloat. There was a further condition reading 'weight, measure marks, numbers, quality, contents and value if mentioned in the bill of lading are to be considered unknown unless the contrary has been expressly acknowledged and agreed to. The signing of this bill of lading is not to be considered as such an agreement. "
( 3 ) BY the written statement filed herein the statements contained in paragraph 1 of the plaint are admitted as substantially correct. But the defendant does not admit that the bill of lading was endorsed in favour of the plaintiff or that the endorsement was for valuable consideration or that the plaintiff was the owner of the goods covered by the bill of lading. The substantial defence seems to be contained in paragraph 3 of the written statement where it is stated that "alter the said cargo was discharged as aforesaid and while the same were in the custody of the port authorities it was found that as a result of insufficient packing for which the carrier owed no responsibility, several bundles had become loose. By a letter dated September 18, 1956 the plaintiff informed the defendant that the plaintiff itself would be willing to take delivery of the loose cargo in the custody of the port authorities if the defendant agreed to meet the plaintiff's claim in case the weight of the cargo as received by the plaintiff fell short of the shipped weight. In response to the plaintiffs request the defendant agreed to meet the plaintiffs claim in case there was any discrepancy between the weight of the cargo as delivered and the shipped weight.
( 4 ) THE defendant denies that the cargo as received by the plaintiff was shorter in weight than the cargo shipped or that there was any failure on the part of the defendant to carry the said cargo or to deliver to the defendant any part thereof. In the same paragraph the defendant has also denied that any part of the said cargo was not delivered by the defendant and the defendant further does not admit that the plaintiff had not received any part of the cargo.
( 5 ) THE present application is being made by the defendant on the ground (a) that under the bill of lading any dispute arising under it could only be litigated upon in the courts in Sweden, and (b) the Swedish courts would be the courts of conve
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