Supreme Court of India
S. Saghir Ahmad & D.P. Mohapatra, JJ.
PATEL ROADWAYS LTD.—Appellant
versus
BIRLA YAMAHA LTD.—Respondent
Civil Appeal No. 9071 of 1996—Decided on 28.3.2000
Carriers Act - Applicability to Consumer Protection Act - Section 9
Fact of the Case:
The case involved a dispute between M/s. Birla Yamaha Limited and M/s. Patel Roadways Limited regarding the destruction of 267 generator sets during transportation. The respondent filed a petition before the National Consumer Disputes Redressal Commission claiming compensation for the loss.
Finding of the Court:
The National Consumer Disputes Redressal Commission held that the appellant was liable to compensate the respondent for the loss of the goods under Section 9 of the Carriers Act, which relieves the complainant from proving negligence or criminal act by the carrier.
Issues: The core issue was the applicability of Section 9 of the Carriers Act to a proceeding under the Consumer Protection Act.
Ratio Decidendi: The court found that the liability of a common carrier under the Carriers Act is that of an insurer, and the burden of proof on absence of negligence is upon the carrier. The court also rejected the argument that the term 'suit' in Section 9 of the Carriers Act is limited to civil court proceedings.
Final Decision: The court dismissed the appeal, upholding the liability of the carrier under Section 9 of the Carriers Act.
Key Points: - The carriers act Section 9 applies to suits against common carriers, not limited to Civil Courts; the National Commission proceeding can be treated as a "suit" for purposes of Section 9 (!) (!) - A common carrier’s liability is insurer-like, absolute liability subject to act of God or special contract; burden of proof on absence of negligence lies on the carrier (!) (!) (!) - Consumer Protection Act forums (District Forums, State Commissions, National Commission) have jurisdiction to entertain complaints involving loss/damage to goods in transportation and their orders have finality and enforceability similar to Court decrees (!) (!) (!) (!)
D.P. Mohapatra, J.—The core question that arises for determination in this appeal is whether Section 9 of the Carriers Act, 1865 (Act 3 of 1865) is applicable to a proceeding under the Consumer Protection Act, 1986 (68 of 1986). The answer to this question depends on the interpretation of Section 9 of the Carriers Act and its inter-action with the relevant provisions of the Consumer Protection Act.
2. The factual matrix of the case relevant for determination of the issue may be stated thus. The respondent M/s. Birla Yamaha Limited booked 237 consignments containing 267 generator sets at Ghaziabad in the State of Uttar Pradesh, with the appellant M/s. Patel Roadways Limited for transportation. The freight charges were duly paid by the consignor to the carrier and necessary lorry receipt was issued by the latter in favour of the former. The goods booked by the respondent were destroyed in a fire which took place in the godown of the appellant shortly after booking of the consignments. The respondent made a claim for the value of the goods, for refund of freight charged and compensaton for the loss. Some correspondence between the parties followed. Since no satisfactory solution was arrived at between them the respondent filed a petition before the National Consumer Disputes Redressal Commission (‘the Commission’ for short) in 1994 which was registered as Original Petition No. 43/1994. The respondent claimed Rs. 56,00,799/- along with interest. The said sum comprised Rs. 50,78,231/- as cost of 267 generator sets, Rs. 22,568/- as freight charged and Rs. 5,00,000/- as general and special damages on account of harassment and undue loss of time. It was alleged in the complaint, inter alia, that the carrier having accepted the responsibility of transportation of the consignments and safe delivery of goods failed to deliver the same. Thus there was deficiency in the service to be rendered by the appellant as carrier.
3. On being noticed by Commission the appellant appeared and filed their counter affidavit. Therein the appellant did not deny the entrustment of the goods, the booking particulars and issue of lorry receipt, as averred in the complaint. The appellant pleaded that the consignments were lost in fire which was an accident beyond their control and, therefore, there was no deficiency in service and the complaint was not maintainable. It was further pleaded by the appellant that the loss having taken place for reasons and in circumstances beyond their control they were not liable to make good the loss either under the contract between the parties or under general law.
4. Both the parties filed affidavits and documents in support of their case. The Commission on assessment of the materials on record held, inter alia, that the respondent was entitled to receive from the appellant Rs. 51,00,799/- i.e. Rs. 50,78,231/- towards cost of the generator sets and Rs. 22,568/- being the refund of freight charges. The Commission rejected the claim of Rs. 5,00,000/- towards general and special damages. The Commission in its order placed reliance on the provision in Section 9 of the Carriers Act to hold that the appellant are deficient in the performance of their service as common carrier, as the goods entrusted have not been at all delivered in accordance with the contract of carriage for consideration evidenced by the receipts. The Commission also held that Section 9 relieves the complainant from the burden of showing that the loss or non-delivery was owing to any negligence or criminal act; and that the loss to the goods sent is prima facie evidence of negligence. Feeling aggrieved by the said order the appellant filed this appeal under Section 23 of the Consumers Protection Act.
5. The main thrust of the submissions of Mr. Ashok Desai, learned Senior Counsel appearing for the appellant, was that Section 9 of the Carriers Act in terms does not apply to a proceeding under the Consumer Protection Act. According to Mr. Desai the provision
4. AIR 1959 MP 351. (Relied)
6. AIR 1962 Mad. 44. (Relied)
8. AIR 1963 Bom. 208. (Relied)
9. AIR 1965 Raj. 200. (Relied)
14. 1983 KLT 480. (Relied)
15. AIR 1971 Ker. 197. (Relied)
16. AIR 1989 Pat. 303. (Relied)
17. II (1996) CPJ 25 (SC)=(1996) 4 SCC 704. (Referred)
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.