RAJ KAMAL TRANSPORT Vs. NEW INDIA ASSURANCE CO.

JUDGEMENT

(1.) 1st defendant in O.S. No. 217 of 1982 on the file of the Sub Court, Ernakulam, is the appellant Suit is for money for damages.

(2.) THE facts that led to the filing of the suit are as follows: M/s. Kwality Food Products, the predecessor -in -interest of the 2nd defendant was doing business of manufacture, marketing, sale and distribution of food products like biscuits under the name and style 'Kwality Biscuits'. It is the plaintiff's case that in the course of business, M/s. Kwality Food Products despatched 1110 tins of Kwality biscuits to M/s. Ceylon Fancy House, Market Road, Ernakulam. The goods were entrusted for transport to 1st defendant from the branch office of M/s. Kwality Food Products in Palghat and were transported by the 1st defendant. On reaching the goods at the destination it was found that there was shortage. A certificate of damage and shortage of goods was also issued by the 1st defendant. It is the plaintiffs case that it was on account of the negligence on the part of the 1st defendant that the short occured and therefore the 1st defendant was liable to compensate the plaintiff for the loss sustained by them. M/s. Kwality Food Products lodged a claim for compensation, but the 1st defendant refused to settle the claim. M/s. Kwality Food Products had taken a marine policy of insurance with the plaintiff in respect of the consignment in question. Therefore, M/s. Kwality Food Products lodged a claim with the plaintiff for compensation for the loss which was estimated to Rs. 27, 482.70. The plaintiff settled the claim and therefore the plaintiff is entitled to recover the amount from the defendants. The plaintiff called upon the 1st defendant to effect the payment but the 1st defendant refused to do so. 1st defendant sent a reply disowning the liability. Hence the suit.

(3.) ON a consideration of the evidence in the case, the Court below held that the 1st defendant is liable to pay Rs. 27, 482.70 Ps. to the plaintiff as damages and in that view of the matter, a decree was passed in favour of the plaintiff for recovery of Rs. 27, 482.70 Ps. with future interest at 6% from the date of suit till realisation.