RAJASTHAN STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, JAIPUR
Honble Mr. Justice N.C. Sharma, President;
Mr. Subhash Purohit & Mrs. Firoza Bano, Members
BHILWARA SYNTHETICS LIMITED—Complainant
versus
P.K. TRANSPORT CORPORATION & ORS.—Opposite Parties
Complaint Case No. 102 of 1993 — Decided on 30.8.1996
Counsel for the Parties:
For the Complainant:Mr. A.K. Bhargava, Advocate.
For the Opposite Parties:Mr. Shiv Garg, Advocate.
A carrier is liable to the consignor for the value of the goods if the carrier delivers the goods without the written authority from the consignee Bank or its order endorsed on the consignee copy or on a separate letter of authority.
Headnote:
DEFICIENCY IN SERVICE - CARRIER - DELIVERY OF GOODS WITHOUT GOODS RECEIPTS - LIABILITY OF CARRIER - CONSUMER PROTECTION ACT, 1986.
Fact of the Case:
The complainant, M/s. Bhilwara Synthetics Limited, booked six consignments of yarn with the opposite parties, M/s. P.K. Transport Corporation, for transportation from Bhilwara to Ludhiana. The goods receipts were issued to the complainant, with the consignees being Oriental Bank of Commerce Limited and Bank of Rajasthan Limited, Ludhiana. The complainant sent the goods receipts along with invoices and Hundies through its Bankers for negotiation and collection. The opposite parties delivered the goods to the intending purchaser, M/s. Sekhri Trading Company, without production of the goods receipts by the said Company.
Finding of the Court:
The court held that there was a deficiency in service on the part of the opposite parties as they had violated the conditions printed on the goods receipts by delivering the goods without the written authority from the consignee Bank or its order endorsed on the consignee copy or on a separate letter of authority. The court also held that the opposite parties were liable to the complainant for the value of the goods.
Issues: 1. Whether there was a deficiency in service on the part of the opposite parties? 2. Whether the opposite parties were liable to the complainant for the value of the goods?
Ratio Decidendi: The court held that the opposite parties were liable to the complainant for the value of the goods as they had violated the conditions printed on the goods receipts by delivering the goods without the written authority from the consignee Bank or its order endorsed on the consignee copy or on a separate letter of authority.
Final Decision: The court allowed the complaint and directed the opposite parties to pay to the complainant an amount of Rs. 4,60,870/- with interest @ 15% per annum from 11.12.92 till the date of payment. The opposite parties were also directed to pay Rs. 5,000/- as costs of the complaint to the complainant.
Mr. Justice N.C. Sharma, President — This complaint had been filed by M/s. Bhilwara Synthetics Limited, Bhilwara against the carriers claiming an amount of Rs.4,60,870/-as the value of the goods, Rs. 1,34,019/- as interest, Rs. 50,000/- as travelling expenses and Rs. 7,000/- as costs of the complaint.
2. According to the complainant, it is a Public Limited Company and it carries on business of manufacturing yarn and cloth and sends yarn and cloth for sale by purchasers and to manufacturers of yam throughout India. M/s. P.K. Transport Corporation is a transporter of goods with its administrative office at Delhi and branch offices at Bhilwara and Ludhiana. The branches at Bhilwara and Ludhiana of M/s. P.K. Transport Corporation have been impleaded as opposite parties Nos. 1 & 3 in the complaint and the administrative office at Delhi has been impleaded as opposite party No. 2. The complainant has stated that it had booked with M/s. P.K. Transport Corporation, Branch Office Bhilwara certain consignments of yarn to be transported to Ludhiana under six motor receipts detailed in para 4 of the complaint during the period from 4.9.91 to 27.11.91. The complainant states that the Branch Office of M/s. P.K. Transport Corporation at Ludhiana had to deliver the goods to M/s. Sekri Trading Company, Ludhiana upon delivery of the motor receipts. The complainant had sent the motor receipts alongwith invoices and Hundies through its Bankers Oriental Bank of Commerce Limited, Bhilwara and Bank of Rajasthan Limited, Branch Bhilwara. The consignee M/s. Sekri Trading Company, Ludhiana had to take the motor receipts from the Banks at Ludhiana after paying price of the goods and then to obtain delivery of goods from opposite party No. 3 against production of the motor receipts. Acceding to the complainant, the total value of the goods booked under six motor receipts was Rs. 4,60,870/-. The Bankers of the complainant returned the motor or goods receipts to the complainant as the same were not retired from the Bank by M/s. Sekri Trading Company, Ludiana after making payment of the invovice price. Upon receiving back the goods receipts, the complainant personally and through letters informed the opposite parties Nos. 1 & 3 that the goods receipts had not been retired by M/s. Sekri Trading Co., Ludhiana and therefore, they may re-book the goods from Ludhiana to Bhilwara, but these opposite parties did not send back the goods to Bhilwara to be delivered to the complainant. The opposite parties thus neither re-delivered the goods and nor paid the price of the goods. Instead of that, in conspiracy with M/s. Sekri Trading Company, the transporters delivered the goods to M/s. Sekri Trading Company and realised the price of the goods themselves or the opposite party No. 3 itself sold the goods. The complainant, therefore, filed this complainant claiming Rs. 4,60,870/- from the opposite parties as value of the goods and Rs. 1,34,019/-as interest @ 24% per annum. The complainant also claimed Rs. 50,000/- at travelling expenses and Rs.7,000/-as costs of the complaint.
3. The opposite parties have filed their version in the State Commission. In the version, the opposite parties have stated that the complainant had deliberately concealed the material facts. Not only of those goods receipts, but goods under numerous other goods receipts had been sent as sales and purchase transaction between the seller and the purchaser. It is said that the terms of the transportation always dependent upon the arrangements and agreements between the parties whether in writing or orally or both. It had also been the practice entirely at the instance of the complainant that the goods were delivered after transportation to the purchaser Sekhri Trading Company and the goods receipts for the consignments were sent to the opposite parties in due course. Almost in all cases, Sekhri Trading Company never retired documents from Bankers and always obtained delivery of the goods on the stre