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2007 Supreme(Online)(Bom) 1

BOMBAY HIGH COURT
Anoop V. Mohta, J.
S. K. Networks Company Ltd. v. M/s. Amulya Exports Ltd. and Others
Chamber Summons No. 1391 of 2005



Advocates:
For the Appellants/Petitioners: learned Counsel for defendant Nos. 3 and 4, defendant No. 5
For the Respondents: None

Allegations of fraud can extend the limitation period for claims under the Carriage of Goods by Sea Act, permitting suits within three years if filed after discovery of such fraud.

Headnote:(A) Carriage of Goods by Sea Act, 1925 - Limitation Act, 1963 - The suit is dismissed for want of jurisdiction against some defendants and for being time-barred under Section 6 of the Carriage of Goods by Sea Act, 1925, which stipulates a one-year limit for bringing claims after delivery of goods (Paras 16, 27).

(B) Fraud - Claims relating to fraud can extend limitation periods if discovered late, thus allowing the plaintiff's suit to proceed beyond the one-year limit (Paras 31, 38).

(C) Jurisdiction Clause - The absence of privity of contract between certain defendants and the plaintiff undermines jurisdictional claims (Paras 2, 24).

Facts of the case:
The plaintiff alleged that false dates on the bill of lading by the defendants caused significant financial losses due to late delivery and led to the rescission of a contract with a buyer (Paras 2, 10).

Findings of Court:
The court found that the suit was not barred by the law of limitation due to the fraudulent actions of the defendants (Paras 32, 30).

Issues: The critical questions included whether the suit was time-barred and the interpretation of fraud concerning the limitation period (Paras 19, 31).

Ratio Decidendi: The court emphasized that while the Carriage of Goods by Sea Act imposes a one-year limit, allegations of fraud can save a claim from being time-barred if made within three years of discovery (Paras 27, 28, 31).

Result: The Notice of Motion by defendants to dismiss the suit was dismissed and they were ordered to file written statements (Paras 43, 44).

Table of Content
1. requests for dismissal based on jurisdiction and limitation. (Para 1 , 4)
2. details of the plaintiff's business and contractual agreements. (Para 5 , 6 , 10)
3. fraud allegations related to the bill of lading and its consequences. (Para 12 , 14 , 23)
4. provisions applicable from the sea act and its interpretation. (Para 16 , 22 , 42)
5. limitations period for filing suits and its implications. (Para 18 , 27 , 30)
6. court's decision-making regarding limitations and allegations of fraud. (Para 38 , 39)
7. final determination and orders issued by the court. (Para 43 , 44 , 45 , 46)

1. This Notice of Motion has been taken out by the applicants, original defendant Nos. 3 and 4 and prayed as under : -
Clause (a) - That the above suit be dismissed for want of jurisdiction against the third and fourth defendants.
Clause (b) - In the alternative the suit be dismissed as the same is barred by law of limitation.


2. By an order dated 24th January, 2006 in Chamber Summons No. 1391 of 2005 taken out by defendant Nos. 3 and 4 for revocation of leave granted by an order dated 24-4-2004 under Cl. XII of Letters Patent was dismissed and observed as under : -
"5) Firstly according to defendant Nos. 3 and 4 themselves there is no privity of contract between the plaintiff and defendant Nos. 3 and 4 based on this bill of lading. In the circumstances, the above clause regarding jurisdiction cannot operate between the plaintiff and defendant No. 3 / defendant No. 4."
"7) The plaintiff's case inter alia is that false boarding dates had been deliberately put on the bill of lading issued by defendant Nos. 3 and 5 with respect to the said consignment to avoid their obligations to the plaintiff. As a result thereof, according to them, they were unable to negotiate a letter of credit. The buyers in China refused to make payment under the letter of credit as the date of the shipment was beyond the date specified in the letter of credit. With the merits of this contention. I am not concerned at this stage. What is relevant is that the plaintiff has expressly pleaded that the dates were falsely put on the bill of lading and that the defendants jointly and severally connived in perpetrating the fraud and had also committed breach of trust."


3. In view of this and as the submission are made in respect of prayer Cl. (b) only, the matter proceeded accordingly.

4. The plaintiff and respondents have filed the present suit against defendants, basically for the damages on account of late delivery of the goods and also for additional losses incurred by the plaintiff because of revocation of contracts with the Chinese buyer. The respondents have raised claims against respective defendants separately as well as jointly. These prayer clauses of the plaint are as under : -
a) This Hon'ble Court be pleased to order and decree the defendants jointly and severally for the sum of USD 506,635.93 equivalent to INR 2,22,91,980/- along with interest @ 12% for the period 21st April, 2003 to 21st April, 2004 amounting to USD 60,796 equivalent to INR 26,75,024/- as per particulars of claim being Exh. "P."
b) this Hon'ble Court be pleased to order and decree the defendant Nos. 1 and 2 for the sum of USD 506,635.93 equivalent to INR 2,22,91,980/- as per particulars of claim being Exhibit "P."
c) this Hon'ble Court be pleased to order and decree the defendant Nos. 3 and 4 for the sum of USD 229,931.99 equivalent to INR 1,01,17,007/- as per particulars of claim being Exhibit "P."
(d) this Hon'ble Court be pleased to order and decree the Defendant No. 5 for the sum of USD 276,704.14 equivalent to INR 1,21,74,982/- as per particulars of claim being Exhibit "P".
(e) this Hon'ble Court be pleased to order and decree the Defendants for the sum of USD 50,663 equivalent to INR 22,29,172/- as particulars of claim Exhibit "L".
(f) this Hon'ble Court be pleased to order and decree the Defendants for the sum of USD 50,000 equivalent to INR.
(g) this Hon'ble Court be pleased to order and decree













































































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