Orissa High Court
S. ACHARYA, J.
Prag Oil Mills Depot - Appellant
Versus
Transport Corporation of India - Respondents
Second Appeal No. 39 of 1975
Decided On : 20 February 1978
JURISDICTION - CONTRACT - CARRIAGE OF GOODS - CONSIGNMENT NOTE - JURISDICTION CLAUSE - VALIDITY - COURT'S JURISDICTION TO ENTERTAIN SUIT - INTERPRETATION OF CONTRACT TERMS - DAMAGES FOR SHORTAGE OF GOODS - LIABILITY OF CARRIER.
Fact of the Case:
Plaintiff, a registered partnership firm, dispatched 14 cases of washing soap through the defendant, a common carrier, from Ranchi to Cuttack. The plaintiff paid the freight for the consignment to the defendant's Cuttack branch. Upon attempting to take delivery of the consignment, the plaintiff found some packing cases in a broken condition and a substantial portion of the contents pilfered. The plaintiff requested an open delivery of the goods and a shortage certificate, but the defendant refused. The plaintiff filed a suit in a Cuttack court seeking damages for the shortage.
Finding of the Court:
The trial court dismissed the suit on the ground that, as per the terms of the consignment note, only a civil court in Calcutta had jurisdiction to entertain the suit. The appellate court held that the Cuttack court had jurisdiction and granted a decree for a small amount of damages based on the finding of a shortage of only 3 kgs. of washing soap.
Issues: 1. Whether the Cuttack court had jurisdiction to entertain the suit despite the jurisdiction clause in the consignment note? 2. Whether the defendant was liable for damages due to the shortage of goods?
Ratio Decidendi: 1. The jurisdiction clause in the consignment note was not binding on the plaintiff as there was no evidence of the plaintiff's agreement to the term. 2. The defendant was liable for damages as it failed to deliver the consignment to the plaintiff and refused to issue a shortage certificate despite the shortage being admitted. The plaintiff was not liable to pay demurrage, wharfage, and labor charges for the period after the date of refusal to deliver the consignment.
Final Decision: The appeal was allowed, and the plaintiff was granted a decree for the value of the consignment and the freight paid, with interest.
Judgement
JUDGMENT :- The plaintiff has preferred this appeal.
2. The plaintiff is a registered partnership firm carrying on business at Cuttack with its head office at Aligarh. Defendant No. 1 is a common carrier who carries on business of transporting goods on hire or on payment of freight. Defendant No. 2 is the Cuttack branch of defendant No. 1. One M/s. Jethmal Ramkumar of Ranchi despatched 14 cases of washing soap through the defendants under receipt No. 9967 dated 27-5-71 for delivery of the same to the plaintiff at Cuttack. The plaintiff paid Rs. 93.30, the freight for transporting the said washing soap, to defendant No. 2 under money receipt No. 44621 on 11-6-71. Soon thereafter the plaintiff s man went to the godown of defendant No. 2 to take delivery of the said consignment. The facts stated so far are not disputed.
3. The plaintiff s case in short is that in the defendant s godown the plaintiff s man found some of the packing cases in completely broken condition and a substantial portion of the contents therein had been pilfered or removed. So he insisted on the defendants employees for open delivery of the said goods and to grant a shortage certificate as per the actual delivery. But as the defendants men refused to grant any shortage certificate, the plaintiff s man had to come back without taking delivery of the said goods. Thereafter the plaintiff itself or its lawyer sent registered letters to the defendants firm at Cuttack asking the latter to give open delivery of the said goods and to pay damages for the actual shortage, but defendant No. 2 instead of giving open delivery of the articles to the plaintiff, gave evasive replies and directed the latter to take delivery of the goods as they were on payment of demurrage, wharfage and other charges and to contact the different offices of the defendants at different places. As the defendants did not deliver the goods to the plaintiff by taking evasive pleas, the plaintiff was obliged to file the present suit.
4. Defendant No. 1 did not contest the suit and was set ex parte.
Defendant No. 2 in its written statement refuted all the averments in the plaint. According to this defendant, the plaintiff s allegations are all baseless and false; the consignment in question was in perfect condition and there was absolutely no breakage of or shortage in the same. It is also stated in the written statement that as per the terms and conditions mentioned in the consignment note (Ext. E) of the Transport Corporation of India on which the goods were consigned only a Civil Court in the city of Calcutta has the jurisdiction to entertain any suit in respect of any claim arising under that receipt, and the Civil Court at Cuttack has no jurisdiction to entertain any suit in this connection.
5. The trial court found that a consignment worth Rs. 700/- had been despatched by M/s. Jethmal Ramkumar of Ranchi to the plaintiff. A shortage of 68 pieces of washing soap was detected in the said consignment when it was in the defendant s godown at Cuttack. But defendant No. 2 did not grant any shortage certificate to that effect to the plaintiff though the plaintiff was entitled to the same. It found that the plaintiff was to get damages from the defendants only in respect of the said 68 pieces of washing soap, and its claim of Rs. 1400/- was not justified. After arriving at the said findings it at last held that in view of the terms of the contract between the parties in this respect, as seen from the consignment note Ext. E, the plaintiff s suit in respect of this matter was cognizable only in a civil court in Calcutta and not in any court at Cuttack. On the above ground of lack of jurisdiction of the court the suit was dismissed.
6. The appellate court has found that the Civil Court at Cuttack, within whose jurisdiction the cause of action arose in its entirety and where the contesting defendant resided and carried on business, has jurisdiction to try this suit and the plaintiff is not bound by con
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