S F AND CHARTERING CONSULTANTS PVT LTD Vs. FIEL TRADERS
LAWS(CAL)-1986-11-6
HIGH COURT OF CALCUTTA
Decided on November 24,1986

S.F.AND CHARTERING CONSULTANTS PVT. LTD. Appellant
VERSUS
FIEL TRADERS Respondents

JUDGEMENT

SANKARI PRASAD DAS GHOSH, J. - (1.) The extent of duty of an agent for a consignor in the matter of preparation of air consignment note or air way-bill under the Carriage by Air Act, 1972 (hereinafter referred to as the Act), is the main point for determination in this appeal arising from a judgement and decree passed by the learned Judge, Eleventh Bench, City Civil Court, Calcutta, in Money Suit No. 772 of 1975. The money suit was dismissed on contest by the learned Judge.
(2.) The plaintiff appellant is an authorised air cargo agent of the International Air Transport Authority (I.A.T.A.) representing all I.A.T.A. Air Lines and is also an authorised Customs House Agents. On the basis of an instruction from the defendant-respondent for collection, receipt and despatch of a consignment of 20 packages of finished leather (Industrial Globe Leather) in gunny to the consignee, M/s. Gutenstein and Company Inc. at 440, Frelinghuysen Avenue, New York (U.S.A.), the plaintiff prepared a shipping bill for customs purpose on the basis of the documents supplied by the respondent to the appellant. These documents included a Purchase Order dt. 16-4-74 from the consignee for purchase of the consignment for the amounts mentioned in that purchase order. It was stated in the purchase order that payment was to be made against documents and that fifty per cent of the air freight was to be at the cost of the consignee. Three conditions were mentioned in that purchase order. These conditions related to mention of the number of the purchase order and other matters. In pursuance of this instruction by the respondent, the appellant prepared the shipping bill on the basis of invoice of the respondent and thereafter prepared the air way-bill on 9-8-74. On 9-8-74, the appellant issued a certificate that the consignment was booked for flight on 12-8-74. Subsequently, on 12-8-74, the appellant made over to the respondent several documents including the air way-bill with extra copies, purchase order No. 63363 dt. 16-4-74 from the consignee and the shipping bill (without mentioning the number and date of the shipping bill). On 14-8-74 there was- a letter by the respondent to the Assistant Collector of Customs for Exports, Customs House, Calcutta, for amendment of the shipping bill and correction of the invoice due to erroneous mention of C and F value of the consignment in the shipping bill, due to mistake in calculation in the invoice. After the correction of the shipping bill, the consignment was sent by the British Airways on 19-8-74 from Calcutta to New York. The respondent sent necessary documents to the Chartered Bank of India, 14, Netaji Subhash Road, Calcutta, for collection of the value of the goods and the freight from the consignee. They received a reply on 24-9-74 from the Chartered Bank of India at 14, Netaji Subhas Road, Calcutta, that the consignee had already taken delivery of the relative parcels and that the parcels did not contain the merchandise, which they ordered. As the bill was unpaid by the consignee at the New York office of the Chartered Bank of India, the original and duplicate documents were returned by the Chartered Bank to the respondent. Subsequently, the Money Suit was filed by the appellant for recovery of the freight and other charges pre-paid by them at the time of booking the consignment for delivery to the consignee at New York. The amounts were pre-paid as the appellant was entitled to 5% commission on the freight amount.
(3.) The case of the appellant was that the appellant performed their obligations on the basis of the instructions given by the respondent to collect, receive and despatch the consignment to New York as their agent and that, in spite of the respondent's undertaking to the appellant to pay the air freight and other charges, the respondent was not paying the freight and other charges already pre-paid by the appellant. As such, the claim was laid for recovery of Rs. 16,185/- already pre-paid by the appellant towards the freight and other charges, along with interest at the rate of 12% and further interest at the rate of 12% from the date of filing of the suit till the date of recovery. The total claim was laid at Rs. 18,261/- including interest up to the date of filing of the suit.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.