NIPPON YUSEN KAISHA Vs. MAHALI RAM-RANJIDAS

JUDGEMENT

(1.) The appellants, Nippon Yusen Kaisha, are ship-owners, and we are concerned with two vessels Moji Maru and Hakata Maru which sailed from Calcutta in May a June, respectively of 1926. The claim against the appellants is for the value of 325 bales of gunny bags, as damages caused to the plaintiffs, by the wrongful conduct of the appellants in issuing bills of lading for those bags to the International Export Company, Limited, and delivering them at Kobe to the order of this company. Each bale contained 400 bags.

(2.) By a contract in one of the forms of the Indian Jute Mills Association, the plaintiffs on 27th January 1925, had bought a large quantity of gunnies from the Lansdowne Mills for delivery in April, May a June, of that year. By another contract in similar terms they resold 3,20,000 bags to the International Export Company Limited which is now in liquidation. The sale in each case was free alongside export vessel in the port of Calcutta, and both contracts contained the following clauses: (3). Payments to be made in cash in exchange for delivery order on sellers, or for railway receipt, or for dock receipts, or for mate's receipts, which dock receipts, or mate's receipts are to be handed by a dock's ship's officer to the sollers representative. (4). The buyers hereby acknowledge, that so long as such railway receipt, or mate's receipts whether in sellers or buyers mime, are in the possession of the sellers, the lien of the sellers, as unpaid vendors, subsists both on such railway receipts or dock or mate's receipts and the goods they represent until payment is made in full.

(3.) Contracts in this form are well known in Calcutta and export business in gunnies is in Calcutta conducted entirely or almost entirely under such contracts. This circumstance gives considerable importance to the question which we have to decide.