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2001 Supreme(Cal) 209

High Court Of Calcutta
SEN GUPTA
WEST BENGAL ESSENTIAL COMMODITIES SUPPLY CORPORATION LIMITED - Appellant
Versus
KOREN FOREIGN TRANSPORTATION CORPORATION - Respondent
COMMERCIAL CAUSES SUIT 595  Of  1981
Decided On : 04/16/2001

The Carriage of Goods by Sea Act does not apply to carriage of goods from a port outside India and discharged at a port in India.

Headnote:

CARRIAGE OF GOODS BY SEA ACT - MAINTAINABILITY OF SUIT - LIABILITY OF AGENT - SHORT LANDING CERTIFICATE - EVIDENCE - DAMAGES - LIMITATION - JURISDICTION - INTERPRETATION OF STATUTES - PLEADING AND PROOF.

Fact of the Case:

Plaintiffs sought recovery of damages for alleged short landing of cement bags during carriage by sea. Defendant No. 1 was the carrier, and Defendant No. 2 was its agent at Calcutta. Defendant No. 1 pleaded non-service of notice under the Carriage of Goods by Sea Act and denied the short landing. Defendant No. 2 contended that it was not liable as it was merely an agent.

Finding of the Court:

The court held that the Carriage of Goods by Sea Act did not apply as the goods were loaded and carried from a port outside India and discharged at a port in India. The court also held that the suit could not be maintained against both defendants as the plaintiff had elected to sue the foreign principal (Defendant No. 1) and the agent (Defendant No. 2) could not be held liable. The court further held that the plaintiff had proved the short landing of cement bags by producing a short landing certificate and other documents. The court rejected the defendants' evidence as it was not supported by any reliable documents or witnesses.

Issues: 1. Whether the Carriage of Goods by Sea Act applied to the case? 2. Whether the suit was maintainable against both defendants? 3. Whether the plaintiff had proved the short landing of cement bags?

Ratio Decidendi: 1. The court held that the Carriage of Goods by Sea Act did not apply as the goods were loaded and carried from a port outside India and discharged at a port in India. The court interpreted Section 2 of the Act, which limits its application to carriage of goods from any port in India to any other port whether in or outside India. 2. The court held that the suit could not be maintained against both defendants as the plaintiff had elected to sue the foreign principal (Defendant No. 1) and the agent (Defendant No. 2) could not be held liable. The court relied on the principle that an agent is not liable for civil action when the principal has been made a defendant. 3. The court held that the plaintiff had proved the short landing of cement bags by producing a short landing certificate and other documents. The court found that the defendants had not produced any reliable evidence to rebut the plaintiff's evidence.

Final Decision: The court decreed the suit against Defendant No. 1 and dismissed the suit against Defendant No. 2. The court awarded damages to the plaintiff at the rate of 12% per annum with costs.

SEN GUPTA, J.

( 1 ) BOTH the plaintiffs brought the suit for recovery of a sum of Rs. 1,29,476. 33 being the amount of the alleged damages suffered by the plaintiff No. 1. Now the plaintiff No. 2 is the subrogee of the claim of the plaintiff No. 1.

( 2 ) THE short facts which are admitted is that the defendant No. 1 undertook for carriage of 1,90,000 bags of cement from a port of foreign origin namely Korea and for delivery thereof at Haldia Dock partly and partly at Calcutta Port. It is the case of shortlanding of 4,114 bags at Calcutta port. This alleged shortage was detected as alleged in the plaint, before 9/08/1980, and this has been certified by the Short Landing Certificate No. 420/hgrh. The plaintiff No. 1 was the transferee consignee by virtue of purchase of the goods on high seas and these goods were admittedly insured by the plaintiff No. 2. It appears that on payment of the insured value, the right, title and claim of lost goods has been assigned and/or subrogated by the plaintiff No. 1 in favour of the plaintiff No. 2. Thus, the plaintiff No. 2 is interested to obtain the decree as prayed for. Joint written statement has been filed by defendants. The defendant No. 1 is a carrier, and the defendant No. 2 is an agent of the defendant No. 1 at Calcutta. The defence is, apart from general denial, maintainability of the suit and sustainability of the claim itself on the ground of non-service of notice under the Carriage of Goods by Sea Act. This suit was once heard by Ronojit Kumar Mitra, J. and His Lordship framed following issues :-1. Did the plaintiff serve notice on the defendants before or at the time of removal by the plaintiff of the said cargo or within three days thereafter? 2. Is the short landing certificate dated 9-8-1980 REFERRED TO in paragraph 8 of the amended plaint correct and can be relied upon? 3. Did the Vessel discharge all the cargo at the ports of Haldia and Calcutta which are the subject-matter of the suit?"

( 3 ) THE plaintiff No. 2 has examined only one witness in order to prove the case on behalf of the plaintiffs. The defendants have examined four witnesses, out of them three are third party witnesses. Mr. Bose learned Advocate appearing for the defendants, submits that the plaintiff has not been able to prove its case of short landing, rather the defendants have been able to prove by documentary evidence beyond doubt, that there could not be any question of short landing rather the entire goods were discharged and delivered at Haldia and Calcutta Port. He has drawn my attention to Exhibit Nos. 2 and 3 particularly and also other exhibits namely Exhibit Nos. 1 and 4 which show that a part of the cargo was discharged at Haldia point by port authority themselves and, discharge of rest of the goods was accomplished by the stevedore under usual practice at Calcutta point. The stevedoring agents was appointed by the plaintiff No. 1. It will appear from the documents themselves that there is no scope for short landing.

( 4 ) HE further contends that there is no document to show that on 9/08/1980 any certificate of short landing was issued or could be issued so, as it was absurd such certificate could be issued on 9/08/1980 when admittedly the cargos were discharged finally on 10/08/1980. The Exhibit-C, purported to be short landing certificate is of dated 19/09/1983 and is of no value. Therefore, there is a discrepancy between the pleadings and evidence. Moreover, Exhibit-C, particularly on question of short landing as regard correctness of the contents thereof has not been proved by the appropriate authority. The only witness of the plaintiff has been able to prove the payment of compensation, but not the case of short delivery. He has also drawn my attention to the relevant questions and answers of the sole witness of the plaintiffs i. e. , question Nos. 54, 56, 57 and 58 and contends he has not been able to explain existence of short landing certificate of 9/08/1983 as alleged in the plaint.
























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