High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE R.JAYASIMHA BABU & THE HONOURABLE MRS. JUSTICE PRABHA SRIDEVAN
M/s Air India & Another - Appellant
Versus
M/s.Asia Tanning Co & Another - Respondents
Letters Patent Appeal No.208 of 1999, CMP.No.19220 of 1999
Decided On : 10 December 2002
Limitation - Carriage by Air - Second Schedule, Rule 30 - Summary of Acts and Sections: Rule 30(1) and Rule 18(1) of the Second Schedule to the Carriage by Air Act, 1972 - The judgment discusses the liability of the carrier, the period of limitation for bringing an action for damages, and the application of the amended Convention (Warsaw Convention 1929 as amended by the Hague Protocol, 1955) to India. It emphasizes that the Rule of Limitation prescribed in Rule 30 is a special Rule of Limitation in respect of carriage by air and will prevail over the general law of limitation. The judgment also highlights the provisions related to the air waybill, including the consignor's rights and responsibilities, and the consignee's entitlement upon arrival of the cargo at the destination.
Fact of the Case:
The appellant, a carrier, was entrusted with finished leather for carriage by air to Boston. The goods reached the destination safely, but the consignee took delivery without producing the original air waybill or making payment to the plaintiff's bank. The suit was filed after the expiry of the limitation period.
Finding of the Court:
The court held that the special rule of limitation provided in Rule 30 of the Second Schedule to the Carriage by Air Act, 1972 would apply, and the appeal was allowed.
Issues: The issues involved the liability of the carrier, the consignee's actions, and the application of the Rule of Limitation in relation to the delivery of goods without insisting upon the original air waybill.
Ratio Decidendi: The court emphasized that the Rule of Limitation prescribed in Rule 30 is a special Rule of Limitation in respect of carriage by air and will prevail over the general law of limitation. It also highlighted the provisions related to the air waybill, including the consignor's rights and responsibilities, and the consignee's entitlement upon arrival of the cargo at the destination.
Final Decision: The appeal was allowed, and the court held that the special rule of limitation provided in Rule 30 would apply.
R. Jayasimha Babu, J.
The appellant is a carrier to whom finished leather was entrusted by the respondent/plaintiff for carriage by air under an air waybill dated 23.02.1979 for being delivered to the consignee who was at Boston. The Cargo reached New York on 25.03.1979. From New York to Boston, the goods were carried by another Airline, Delta Airlines. But that was pursuant to an arrangement between the appellant and that Airline. The cargo reached Boston on 25/26.03.1979. There is no dispute about the fact that the goods landed safely and that the goods had not suffered any damage. The suit was filed in June 1981 after the expiry of the period of two years from the date of arrival of the goods at the destination.
2. The suit by the plaintiff as against the appellant and the consignee was on the ground that the goods ought not to have been delivered to the consignee without insisting on the production of the original air waybill and other documents, which had been sent by the plaintiff to it's bankers for being delivered to the consignee after collecting the value of the goods. The consignee had taken delivery of the goods without producing the original air waybill and without making the payment to the plaintiff's bank. According to the plaintiff the consignee had claimed damages for non delivery of a further quantity of 45,000 sq. ft. of finished leather.
3. The appellant denied it's liability but stated that there had been some negligence on the part of the other carrier in having delivered the goods without insisting upon the original air waybill. It also took the stand that the suit was filed beyond the period of limitation prescribed in Rule 30 of the Second Schedule to the Carriage by Air Act, 1972. The trial Court held that the appellant was liable but dismissed the suit on the ground of limitation.
4. The learned single Judge on appeal has held that Rule 30(1) which prescribes the period of limitation as two years reckoned from the date of arrival at the destination or from the date on which the aircraft ought to have arrived or from the date on which the carriage stopped, has to be read along with Rule 18 (1) of the same schedule which refers to damage sustained in the event of destruction or loss of or damage to any registered baggage or any cargo if the occurrence which caused the damage so sustained took place during the carriage by air.
5. Chapter III of the Second Schedule is titled as "Liability of the Carrier". Rules 29 and 30 therein read as under:
29 (1) An action for damages must be brought, at the option of the plaintiff, in the territory of one of the High Contracting Parties, either before the Court having jurisdiction where the carrier is ordinarily resident, or has his principal place of business, or has an establishment by which the contract has been made or before the Court having jurisdiction at the place of destination.
(2) Questions of procedure shall be governed by the law of the Court seized of the case.
30 (1) The right to damages shall be extinguished if an action is not brought within two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped.
(2) The method of calculating the period of limitation shall be determined by the law of the Court seized of the case.
6. The word 'damages' is not defined in the Rules. Rule 17 deals with the damages sustained in the event of death or injury to a passenger; Rule 18 deals with the damage sustained in the event of the destruction or loss of, or damage to, any registered baggage or any cargo; Rule 19 deals with the liability for damages occasioned by delay in the carriage by air of passengers, baggage or cargo.
7. Section 4 of the Act deals with the application of amended Convention (Warsaw Convention 1929 as amended by the Hague Protocol, 1955) to India. Sub-section (1) thereof reads thus:
"The Rules contained in the Second Schedule being
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