LTC AGRO SALES LTD Vs. MEDITERRANEAN SHIPPING COM

JUDGEMENT

(1.) This Notice of Motion is taken out by the Defendants for (a) dismissal of the Suit on the ground that the Plaintiff has no title to sue; (b) return of security provided by Defendant No. 2 on behalf of Defendant No. 3-vessel and (c) in the alternative, claim Nos. 2, 3 and 4 in the Particulars of Claim at Exhibit 'Q' to the Plaint be struck of and the security furnished be accordingly reduced. Heard the learned counsel for the parties.

(2.) It is the case of the Defendants that the Plaintiff cannot maintain this action in view of the provisions if Section 1 of the Bills of Lading Act, 1856 (hereinafter referred to as 'the said Act'). The Defendants' counsel did not argue the ground of exclusive jurisdiction clause raised in the affidavit in support.

(3.) According to the Defendants, since the Plaintiff had sold the goods to the buyers, endorsed the Suit Bill of Lading and the buyers had taken delivery of the container by surrendering the Bill of Lading, if at all anybody can maintain any action it will only be the endorsee in view of Section 1 of the said Act. The counsel also invited this Court's attention to Exhibit 'A' to the Plaint which is the alleged Sale Contract between the Plaintiff and the buyer of the Cargo and that it provides for payments for the goods to be made by 100% Letter of Credit ('L/C') payable at sight.