The bill of lading serves as conclusive evidence of shipment, and the liability of the carrier is established based on the terms of the bill of lading and the Indian Carriage of Goods by Sea Act, 1925.

Headnote:
Damages - Transit of Goods - Indian Carriage of Goods by Sea Act, 1925 - S.3 of the Indian Bills of Lading Act, 1856
Fact of the Case:

The suit involved a claim for damages due to the loss of cashew nuts during transit by sea. The plaintiffs, an insurer and a consignee, alleged negligence and rough handling by the defendants, a shipping corporation and their agent, resulting in a shortage of 15.686 M.T. of cashew nuts. The defendants denied negligence and asserted that the entire cargo was discharged at the port of Cochin without any short delivery.
Finding of the Court:

The court found that there was a short delivery of 15.686 M.T. of cashew nuts and held the defendants liable to pay damages to the first plaintiff, as the second plaintiff had subrogated their rights to the first plaintiff.
Issues: The main issue was whether the defendants were liable for the alleged shortage of goods during transit.
Ratio Decidendi: The court relied on the Indian Carriage of Goods by Sea Act, 1925 and S.3 of the Indian Bills of Lading Act, 1856 to establish the liability of the defendants based on the bill of lading and the conclusive evidence of shipment provided by the bill of lading in the hands of the consignee.
Final Decision: The appeal was dismissed, and the defendants were held liable to pay damages to the first plaintiff.

Judgment :-

Patnaik, J.

This appeal has been preferred by the defendants against the judgment dated 20-12-1988 passed by the learned Sub Judge, Cochin in O.S. No. 153 of 1987. Itis a suit for damages to the tune of Rs. 2,31,177.63 paise on account of the loss of 15.586 M.T. of cashew nuts during transit by sea.

2. Plaintiff No.1 is the insurer and plaintiff No.2 is the consignee of the goods. Defendant No.1 is the Shipping Corporation of India which transported the goods and Defendant No.2 is their agent. The plaintiffs' case is that as per the Bill of Lading No.1 dated 5-6-1986, 202.830 M.T. of raw cashewnuts bagged in 2700 bags, valued at Rs. 29,89, 274.60 paise were booked for transportation by sea for and on behalf of the second plaintiff at the port of Dar Es Salaam to be discharged at the port of Cochin through the defendant-Shipping Corporation. The same was insured by the first plaintiff under the Marine Insurance (Cargo) Policy on payment of the premium. The goods were loaded in 'M.V. Viswa Yash' at Dar Es Salaam. The vessel arrived at Cochin on 27-6-1986. At the time of landing the consignment, the bags were found to be torn and burst and the contents were partly lost. The defendants have received the consignment in proper and good condition at the time of booking the same at Dar Es Salaam; but due to the negligence and rough handling of the employees of the efendants there was a shortage of 15.686 M.T. of cashewnuts. The port authorities issued short landing certificates showing the short delivery of the consignment. An independent survey was conducted and the surveyors also reported the above loss. The second plaintiff submitted a claim notice for settling the claim to the defendants. But, they failed to settle the same and hence on the basis of the weighment certificate issued by the Cochin Port Trust and the insurance survey report the second plaintiff claimed damages from the first plaintiff. The first plaintiff paid the amount. The second plaintiff executed a letter of subrogation in favour of the first plaintiff authorising them to file the suit against the defendants for recovery of the compensation for the loss and damage to the goods for and on behalf of the second plaintiff. The defendants as Sea Carriers failed to take diligent care of the said consignment while in transit. The defendants are therefore, liable to pay the compensation as claimed for the short delivery.

3. Both the defendants filed separate written statements containing the same averments. While denying the allegation of negligence and carelessness in transporting the cargo in question, it is admitted that as per the declaration of the shipper, 2700 bags of cashewnuts were shipped from Dar Es Salaam under the bill of lading. The carrier never admitted the weight, value, quality, contents and condition of the contents. The entire cargo loaded were discharged at the Port of Cochin and the Port outturn certificate issued by the Cochin Port Trust confirms the fact that there was no short delivery. It is further averred that 2010 sound bags were taken delivery by the clearing agents of the second plaintiff without any complaint or demur about the conditions of the sound bags. Thereafter, the clearing agent of the second plaintiff requested the second defendants that 690 bags which were left behind were required to be surveyed. Out of the 690 bags only 138 bags were presented by the clearing agent of the second plaintiff for the joint survey conducted by the independent surveyors. After the survey of 138 bags, rest of the aforesaid 690 bags were also cleared by the clearing agent. It was found that a part of the cargo in 138 bags were missing and the same were found to be cut, torn and burst. On the basis of the landed weight of the sound bags, the weight of 138 sound bags would come to 8,940.0 Kgs. leaving a shortage of 598.8 Kgs, only. Against the said net shortage of 598.8 Kgs., the earner has delivered 10 bags of steamer sweepings weighing 538 K

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