MADRAS HIGH COURT
RAMACHANDRA IYER,KUNHAMED KUTTI
P.K.Kalasami Nadar
Versus
K. Ponnuswami Mudaliar and others
Appeal No.135 of 1957
Decided On : 20January, 1961
COMMON CARRIER - LIABILITY - BREACH OF CONTRACT - JURISDICTION - [INDIAN CONTRACT ACT, 1872, SECS.151, 152] [CARRIERS ACT, 1865, SECS.2, 3, 5, 6, 9] [CIVIL PROCEDURE CODE, 1908, SECS.19, 20(C)] - A common carrier is liable for the safety of goods entrusted to him in all events, except when loss or injury arises solely from act of God or the Queens enemies or from the fault of the consignor, or inherent vice in the goods themselves. A common carrier being thus under an obligation to deliver the goods safely, would be liable to what happens to them during the time when he is in custody. His liability therefore is said to be that of an insurer. A suit for compensation for wrong done to moveable property can be instituted in a Court within the local limits of whose jurisdiction the wrong was committed, or where the defendant resides. In the case of a claim for damages for a tort, the commission of the tortious act will undoubtedly form a part of cause of action; the damage suffered will also be a part of it. Where there is a contractual obligation to deliver the goods at a particular place, an undertaking can be implied having regard to the context in which the contract is made, namely, with a common carrier who has such an obligation viz. to deliver the goods safely at the destination. In that case there would be a personal obligation. An independent obligation would also exist by reason of the duty which the carrier owes by reason of his calling. The mere existence of an independent ground of liability on tort cannot take away the right of the party to the contract to sue for breach. But such a person will not be bound to sue on the contract; he may rest his claim on the alternative basis of tort. This option exists only to a party to the contract.
Fact of the Case:
The appellant, a common carrier, was entrusted with 26 boras of cotton by the first respondent for transport from Koilpatti to Coimbatore. The cotton bales caught fire while the lorry was passing near Oddanchatram, and the entire consignment was consumed by the fire. The first respondent instituted a suit for recovery of damages for the loss of goods, alleging breach of contract and negligence on the part of the appellant.
Finding of the Court:
The court held that the appellant was liable for the loss of goods as a common carrier, even though the fire was not due to any negligence on his part. The court further held that the suit was maintainable in the Coimbatore Court as a part of the cause of action arose at that place, where the cotton was agreed to be delivered and lorry charges paid.
Issues: 1. Whether the appellant was liable for the loss of goods as a common carrier, even though the fire was not due to any negligence on his part? 2. Whether the suit was maintainable in the Coimbatore Court?
Ratio Decidendi: 1. A common carrier is liable for the safety of goods entrusted to him in all events, except when loss or injury arises solely from act of God or the Queens enemies or from the fault of the consignor, or inherent vice in the goods themselves. 2. In the case of a claim for damages for a tort, the commission of the tortious act will undoubtedly form a part of cause of action; the damage suffered will also be a part of it. Where there is a contractual obligation to deliver the goods at a particular place, an undertaking can be implied having regard to the context in which the contract is made, namely, with a common carrier who has such an obligation viz. to deliver the goods safely at the destination. In that case there would be a personal obligation.
Final Decision: The appeal was dismissed with costs.
RAMACHANDRA IYER, J.:- Ponnuswami Mudaliar, the first respondent, purchased at Koilpatti through his agent the 2nd respondent, 26 boras of karunganni cotton, and entrusted it on 5-8-1952 to the appellant who runs a lorry service for transport of goods as a common carrier, for being carried and delivered at Coimbatore. The lorry hire was to be paid at the destination. The goods were loaded in the lorry of the appellant, and it commenced its journey on the same day. While the lorry was passing near Oddanchatram, a place in the Madurai District, it was noticed that the cotton bales had caught fire, the origin and cause of which is not being ascertainable from the evidence. Efforts were made to put down the fire; but without success. The driver and D.W.1 were able to salvage two or three boras of cotton at great personal risk; the rest was entirely consumed by the fire. The appellant did not even deliver to the first respondent 1 the salvaged cotton. In these circumstances, respondents I and 2 instituted the suit, out of which the appeal arises, for recovery of a sum of Rs.6730-13-6 with subsequent interest as damages for the loss of goods. The claim was mainly rested on the plea that the appellants had failed to deliver the consignment "as agreed". There was also the plea that the loss of goods was occasioned by the gross negligence of the appellant and his servants, and that the former was further liable as a common carrier for their non-delivery. The suit was instituted in the Court of Subordinate Judge Coimbatore, on the ground that a part of cause of action arose at Coimbatore, where the cotton was agreed to be delivered and lorry charges paid.
The appellant and his driver who were impleaded as parties to the suit denied that there was any gross negligence on their part; they further stated that they had taken all reasonable care to ensure the safe transmission of the consignment, and that under the circumstances no liability would attach to them. The jurisdiction of the Sub-Court at Coimbatore to entertain the claim was denied, as according to the appellant the action was based on a tort and could be laid only in the court having jurisdiction over the place, where the loss occurred. The learned Subordinate Judge upheld the contention of the appellant in part, namely, that the lorry was properly equipped and well protected, and that the fire was not due to any defect, therein and that it was not attributable to any negligence on the part of the driver. But he held that independent of the liability as bailee there was a special liability of the appellant as a common carrier for not having safely delivered the goods. Rejecting the plea as to the want of jurisdiction on the ground that a part of the cause of action arose at Coimbatore, he assessed the damages for the loss of goods in a sum of Rs.6730-13-6 and passed a decree for that amount against appellant in favour of the first respondent. The claim against the driver was dismissed.
2. In appeal Mr. K.S. Ramamurthi, the learned counsel appearing for the appellant, raises two contentions. The first is that even as a common carrier the appellants liability would be merely that of an ordinary bailee under Secs.151 and 152 of the Indian Contract Act, and that as in this case, it has been proved that he had taken as much care of the goods as a man of ordinary prudence would have taken of his own goods, he could not be charged for the loss of the consignment by reason of an accidental fire. The second contention is that the claim for damages based as it was on an alleged breach of duty on the Part of a common carrier, should be held to be on tort, and the cause of action could be held to arise only at the place where the accident took place, and that not being within the jurisdiction of the Coimbatore Court, the lower Court had no jurisdiction to entertain the suit.
3. The first contention can be shortly disposed. of. It is not disputed that the appellant is a common carrier.
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