UNIQUE PHARMACEUTICAL LABORATORIES Vs. STALCO FREIGHT INTERNATIONAL CO

JUDGEMENT

(1.) The present suit is filed by the plaintiffs for the recovery of a sum of Rs. 11,32,583/- with interest thereon at the rate of 18% per annum from the date of the filing of the suit till realisation. Some of the material facts of the present case can be briefly enumerated as under :-

(2.) The plaintiffs carrying on the business in the manufacturing, distribution and exporting of pharmaceutical products. The defendant No. 1 is a foreign company and is inter alia carrying on business of carriage of goods by sea. The 2nd defendant is an agent of the 1st defendant. The 1st defendant has its office at Dubai, UAE. The defendant No. 2 as an agent is carrying on business in Bombay.

(3.) On 25.3.2001, the plaintiffs shipped through the defendants a cargo of 509 cartons of pharmaceutical products under two invoices bearing Nos. IN/ 01186 for US $ 13,647. 00 and IN/001187 for US $ 10,323. 00. Both the invoices are dated 26.2.2001. It is the case of the plaintiffs that the said cargo was packed in sound condition and was entrusted to the 2nd defendant for voyage to Yerevan, Republic of Armenia for onward carriage to the buyers in Armenia. It is the case of the plaintiff that the said cargo was stuffed into F. C. L. Container bearing No. APLS 279834 and in respect of transportation of the said goods, the 2nd respondent issued a bill of lading No. MUM/yer/0317 dated 25.3.2001 at Mumbai. It is the case of the plaintiffs that the said issuance of the bill of lading is evidencing the contract of carriage by and between the plaintiff and the defendants under the provisions of the Carriage of Goods by Sea Act, 1925. The liability of the defendants to deliver the said cargo to the destination is an absolute liability under the said Act. It is the further case of the plaintiffs that though the said bill of lading along with other documents was forwarded to the buyers but the buyers refused to accept the said bill of exchange and has returned the same. However, the plaintiff found that in spite of the said bill of exchange being not presented to the defendants, the defendant has handed over the delivery of the goods to the consignee. Thus, the buyer refused to pay the price of the said goods because the said payment was to be received at the time of presentation of the documents including the bill of lading and the same is required to be presented to the defendant and the defendants were required to hand over delivery of the said goods against the same. However, in view of the fact that the buyer received the goods without the said bill of lading, he has refused to accept the documents and the plaintiff has lost the price of the said goods which was to be recovered from the said buyer. It is the case of the plaintiff that this loss has been suffered by virtue of the fault on the part of the defendant to hand over the said goods to the consignee without presentation of the original bill of lading. Thus, the defendants have committed a breach of the contractual obligation and have not performed their statutory duties as contemplated under the said act and, therefore, the defendants are liable for the price of the said gods which comes to Rs. 11,32,583. 00. It is the case of the plaintiff that on the said price the plaintiffs are also entitled to interest at the rate of 18% per annum and accordingly the present suit has been filed.