PREM GS INTERNATIONAL Vs. IRAQUI AIRWAYS

JUDGEMENT

(1.) THIS is an appeal filed by the complainant against the order passed by the State Consumer Disputes Redressal Commission, Delhi in Case. No. C -314/91. The State Commission vide Order dated 25th June, 1993 dismissed the complaint with costs subject to the observation that the complainant may file a civil Suit if so advised. The present respondent was arrayed as opposite party in the complaint.

(2.) THE facts as gathered from the records are that the complainant is carrying on business of exporting ready -made garments, artistic handicrafts and other items of interest. Mr. T.S. Sawhney is its Managing Trustee. M/s. Dalligan Incorporate of the Dallas, Texas (USA) placed an order for ready -made garments with the complainant. They opened an irrevocable letter of credit dated 8th January, 1990 for US Dollars 1,24,200 in favour of M/s. Sawhney Bros. The letter of credit was transferable and it was transferred in favour of the complainant. An amount of US Dollars 18,450 was arranged on the basis of the said letter of credit by M/s. Sahwney Bros, and transferred in favour of the complainant. The complainant prepared garments as per the requirement of the foreign customer and packed them in 25 bags and sent them vide invoice No. 660 on 2nd February, 1990 through the opposite party. The price of the garments was US Dollars 18,450. The opposite partys agent, it is alleged, has issued air waybill on 20th February, 1992. The consignment was to be delivered to or at the instructions of Bank 1, Texas (USA). A sum of Rs. 28,035 was to be collected by the opposite party on account of freight on delivery of the consignment to the consignee.

(3.) THE complaint was contested by the opposite party who inter alia pleaded that the consignment was entrusted to M/s. Friends Clearing Agent Pvt. Ltd. (hereinafter referred to as the clearing agent) on 12th March, 1991. According to the terms of the letter of credit (Addendum) if the consignment was sent after 2nd March, 1990, it was to be sent by air and the master air waybill was to be marked 'freight paid'. The complainants agent did not fulfil the basic condition as the consignment was sent without payment of the freight charges. Thus one of the main conditions of contract entered into between the parties was not complied with, by the complainant. Due to this reason, the goods were not accepted by the consignee. This fact complicated the matter.