KORP GEMS INDIA PVT LIMITED Vs. PRECIOUS DIAMOND LIMITED
LAWS(CAL)-2006-6-4
HIGH COURT OF CALCUTTA
Decided on June 27,2006

KORP GEMS (INDIA) PUT.LIMITED Appellant
VERSUS
PRECIOUS DIAMOND LIMITED Respondents

JUDGEMENT

A.K.Banerjee, J. - (1.) Facts of the Case: Plaintiff and the defendant No. 1 entered into an agreement on December 23, 2005 for sale and purchase of 28001 MT of iron ore for an aggregate value of US$ 12602285 equivalent of Rs.5,68,02,825.00. Under the contract the freight was payable as per the charter party. The cargo was loaded at Haldia and Paradeep. The vessel reached the discharge port in China on February 3, 2006 and the defendant No.1 refused to issue bill of lading in terms of mate receipts and as a result the plaintiff could not negotiate the letter of credit for realization of the value of the cargo by causing delivery of the same to its buyer. The defendant No.1 contended that since the freight was not paid they were entitled to have a lien on the goods. It was contended that the buyer of the goods did not pay the freight charges and as such bill of lading was not issued. The plaintiff filed the above suit, inter alia, claiming for decree for US$7,28,000 as well as for mandatory injunctif n directing the defendant No. 1 as well as defendant No.2 being the agent of the defendant No.1 to issue bill of lading.
(2.) Pending Applications: (1) G.A.No. 531 of 2006: This application was filed by the plaintiff, inter alia, asking for mandatory direction upon the respondents to issue bill of lading in terms of the mate receipts dated January 19 and January 22, 2006. (2) G.A.No. 637 of 2006: This application was also filed by the plaintiff, inter alia, praying for direction upon the respondents to issue bill of lading in terms of the advocate's letter dated March 2, 2006 as well as for variation and/or modification of the order dated March 2, 2006 passed in G.A.No. 531 of 2006. (3) G.A.No. 1164 of 2006: This application was filed by the respondent/defendant No.1, inter alia, praying for stay of the suit as well as all pending proceedings there under, inter alia, under section 45 of the Arbitration and Conciliation Act, 1996 with a further direction for continuance of the bank guarantee furnished by the plaintiff until the disposal of the arbitration proceedings. (4) G.A.No. 1649 of 2006: This application was filed by the plaintiff, inter alia, praying for an order of injunction restraining the respondent No. 1 1 from proceeding with the pending arbitration proceeding at Hongkong pertaining to the subject matter of the above suit. Interim Orders passed by this Court:
(3.) March 2, 2006Sengupta, J directed the shipper to issue necessary bill of lading upon payment of actual freight charges by the plaintiff. The payment of freight charge was directed to be made to the Advocate-on-Record for the defendant No.1 who was in turn directed to take steps for remittance after issuance of the bill of lading. With regard to the balance claim as per information dated February 10, 2006 His Lordship directed the plaintiff to furnish a bank guarantee from any nationalized bank in favour of the Registrar, High Court, Original Side to be kept renewed to the credit of the suit. The interim order was made without prejudice to the rights and contentions of the parties. March 10, 2006This order was passed by Sengupta, J while disposing of G.A.No. 640 of 2006. It was contended on behalf of the plaintiff that despite payment of freight charges bill of lading was not issued. Dispute arose with regard to the hand written clause incorporated in the draft bill of lading by the defendant No.1. His Lordship directed the defendant No. 1 to carry out the order forthwith. His Lordship also reserved the right of the plaintiff for raising objection with regard to the quality and quantity of the goods and directed the defendant No. 1 to issue of bill of lading as per the description given in the mate receipts. March 24, 2006Sengupta, J by consent of parties extended the time to furnish the bank guarantee. Subsequent Development:;


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