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2023 Supreme(Mad) 1265

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S. SUNDAR, N. MALA, JJ.
M/s. Paragon Polymer Products (P) Ltd., Represented by its Authorised Person, S. Annadurai, Salem – Appellant
Versus
M/s. Kerala Roadways Limited, Represented by its Director V.K. Moidoo Haji & Others – Respondents
A.S. No. 427 of 2011
Decided On : 07-03-2023

Advocates appeared:
For the Appellant:T. Murugamanickam, Senior Counsel, M/s. Zeenath Begum, Advocate. For the Respondent:R1, T.N. Sugesh, Advocate, R11 to R13, Dismissed vide Court order Dated 14.10.2022

The main legal point established in the judgment is that the carrier was not liable for the delivery of goods without the consignee copy of 'Goods Consignments Notes' in the absence of an agreement or trade practice to withhold delivery.

Headnote:

Carrier Liability - Goods Transportation - Carriers Act - [Carrier Liability] - [Goods Transportation] - [Section 10 of Carriers Act] - The court discussed the liability of the carrier for the delivery of goods without the consignee copy of 'Goods Consignments Notes' and the absence of an agreement or trade practice to withhold delivery. The court found that the carrier was not liable for the value of the goods and dismissed the suit against the carrier and other defendants.

Fact of the Case:

The plaintiff filed a suit against defendants 1 to 14 for recovery of a sum of Rs.19,61,916/- towards the value of goods under 10 consignments, delivered to defendants 12 and 13, with an interest @ 18% p.a. till the date of plaint. The plaintiff alleged that the goods were delivered to the consignees without the sale documents and consignee copy of 'Goods Consignments Notes', and sought recovery from the defendants.

Finding of the Court:

The trial Court held that the consignments were delivered to the consignees as per trade practice and custom, only on the instruction of the plaintiff. The trial Court dismissed the suit against defendants 1 to 11 and 14, and granted a decree as against defendants 12 and 13.

Issues: The issues framed by the trial Court included whether the consignments were entrusted to the 9th defendant, whether the defendants failed to discharge this entrustment, and whether the suit was bad for non-issuance of notice under Section 10 of Carriers Act.

Ratio Decidendi: The court found that there was no agreement or trade practice to withhold delivery of goods until the consignee produced the sale documents and consignee copy of 'Goods Consignments Notes'. The court also held that the defendants 1 to 11 and 14 were not liable for the suit claim.

Final Decision: The appeal was dismissed with costs, and the judgment and decree of the trial Court in O.S.No.342 of 2004 was confirmed.

JUDGMENT

(Prayer: Appeal Suit filed under Section 96 read with Order XLI of Code of Civil Procedure against the judgment and decree dated 26.10.2010 in O.S.No.342 of 2004 on the file of the Additional District Court (Fast Track Court No.2), Salem.)

T S.S. Sundar, J.

1. The plaintiff in the suit in O.S.No.342 of 2004 on the file of the Additional District Court, Salem (Fast Track Court No.2, Salem), is the appellant in the above appeal, aggrieved by the judgment and decree dismissing the suit as against defendants 1 to 11 and 14 in the suit.

2. The appellant filed the suit against defendants 1 to 14 for recovery of a sum of Rs.19,61,916/- towards the value of goods under 10 consignments, delivered to defendants 12 and 13, with an interest @ 18% p.a. till the date of plaint.

3. The case of the plaintiff in the plaint is as follows:

3.1. The plaintiff is a manufacturer of rubber footwear popularly known as Hawai with brand name “Paragon”. The 1st defendant is a transport company having head office at Calicut and branches throughout the country. Defendants 2 to 7 are the Directors of the 1st defendant. 8th defendant is the Manager at Calicut Branch. 9th defendant is the Manager at Salem Branch. 10th defendant is the Manager at Tirunelveli Branch. 11th defendant is the Manager at Coimbatore Branch. Defendants 12 and 13 are the agents of products of plaintiff at Tirunelveli and Marthandam. Defendants 12 and 13 are the proprietary concerns owned by an individual by name Varusai Mohideen. 14th defendant is the General Manager of 1st defendant, having office at Chennai.

3.2. The plaintiff used to entrust consignments to the 1st defendant''s Branch office at Salem, namely, the 9th defendant, for the purpose of transportation for about 7 years. For the period from 30.06.2003 to 07.10.2003, certain goods were entrusted with the 1st defendant''s Branch office at Salem under 10 different invoices to be delivered to defendants 12 and 13. Simultaneously, the sale documents along with the consignee copy of “Goods Consignments Notes” were sent to the plaintiff''s Bankers to Tirunelveli for negotiation. Since the plaintiff did not receive payments in respect of 10 invoices, they contacted the Bank and informed that the parties, namely defendants 12 and 13, did not turn up to clear the documents. The Bankers returned the sale documents and “Goods Consignments Notes” to the plaintiff on 04.11.2003 and 18.12.2003. Thereafter, the plaintiff contacted the 10th defendant and demanded return of goods. Inspite of personal demand and demand over phone, the 10th defendant did not send any reply nor returned the consignments. Therefore, the plaintiff sent a notice, dated 12.04.2004, to the 14th defendant with a copy of such notice marked to defendants 1, 9, 10 and 11.

3.3. On enquiry, the plaintiff came to know that the goods transported through the 9th defendant reached the destination. Without receiving the sale documents and the consignee copy of “Goods Consignments Notes”, the goods were delivered to the consignees by the 10th defendant. Therefore, the plaintiff issued a notice to the defendants 1 to 8, 10 and 11 through their Advocate on 07.06.2004. The defendants sent a reply notice dated 02.07.2004, through their Advocate, containing false allegations. Thereafter, the plaintiff issued a rejoinder, dated 19.10.2004, addressed to the Advocate of the defendants. The value of the goods covered by 10 invoices is Rs.16,41,771/- and therefore, the defendants were called upon to clear the said account with 18% interest, from the date of notice.

3.4. The defendants 12 and 13, with the knowledge and consent of other defendants, have conspired together and effected illegal delivery and defendants 12 and 13 have misappropriated the value of consignments. A police complaint was also lodged with the concerned police and the same is pending.

3.5. The plaintiff entrusted the consignments to 9th defendant

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