RALLIS INDIA LIMITED Vs. EASTERN TRANSPORT COMPANY

JUDGEMENT

(1.) The complainant is a Company incorporated under the Indian Companies Act, 1956 having its branches and District Offices/depots all over the country. The local office of the Company in Lucknow being handled by District Manager, deals with pharmaceutical, manufacture of high standard life saving drugs and medicines and used to supply on cash payment. One of its stockists and distributors is known as M/ s. Drugs and Drugs (Agencies), Circular Road, Moti Mahal, Kanpur who is opposite party. The opposite party No.1 is the Transport Company catering transport services.

(2.) The complainant received on different dates orders for supply of different medicines from opposite party No.1 in the months of March, 1997 to May, 1997. Accordingly, the complainant prepared consignments of medicines including 21 different invoices as detailed in the complaint and assigned those consignments alongwith invoices on different dates for transportation to Kanpur. The opposite party No.1-Transport Company issued different goods receipts, all in the name of "self" which means in favour of the complainant-Ex-Lucknow to Kanpur. Details of all these goods receipts have also been enclosed. It was on the instruction of the opposite party No.2 that goods were assigned to opposite party No.1 at Lucknow.

(3.) As per trade practice and policy of the Company, the distributor, opposite party No.2 had to make the payment of the said invoices at first to the complainant and then to collect the goods receipts duly endorsed and only then they could receive delivery of goods from the transporter opposite party No.1. The opposite party No.2 Anspite of doing this did not make the payment and the complainant had to seek the rebooking of consignments vide letters containing details of G. Rs. for recall of goods from opposite party No.1 at Lucknow between 13.6.1997 to 11.9.1997. The opposite party failed to return the consignment. It was known that there was pre-planned conspiracy of the two opposite parties to cheat and defraud M/s. Rallis India complainant by adopting unfair trade practice. The transporter-opposite party No.1 was legally bound to have recalled and delivered back the goods (medicines) the complainant at Lucknow. First Information Report was also lodged against the parties under Sections 407/ 420/120-B, I. P. C. (Indian Penal Code ). The enquiry made by the complainant revealed that two opposite parties have criminally misappropriated these medicines as the consignments have neither been returned nor claim settled. The complainant has thus suffered loss of medicines worth Rs.4,92,058.52 and further loss of business and profit and interest at the rate of 18% from the date of recall of consignments amounting to Rs.67,000/-. Thus, the prayer in the complaint case is that the opposite parties are jointly and severally liable' to pay the cost of medicines Rs.4,92,058.52 and Rs.67,000/- interest @ 18% with effect from 15.9.1997 to 14.6.1998 and damages for inconvenience, loss of business and profits Rs.50,000/- and litigation, cost of notice and Counsel's fee Rs.25,000/-.