MESSRS THE JULLUNDUR EX-SERVICEMEN MOTOR TRANSPORT CO-OPERATIVE SOCIETY LTD, JULLUNDUR CITY Vs. THE GENERAL ASSURANCE SOCIETY LTD. AND ANOTHER
LAWS(P&H)-1976-8-21
HIGH COURT OF PUNJAB AND HARYANA
Decided on August 09,1976

Messrs The Jullundur Ex -Servicemen Motor Transport Co -Operative Society Ltd, Jullundur City Appellant
VERSUS
The General Assurance Society Ltd. And Another Respondents

JUDGEMENT

Harbans Lal, J. - (1.) THIS case was referred to Tewatia, J., under Section 13(b) of the Arbitration Act, 1940, (hereinafter to be called the Act), as a special case for opinion and advice, by Shri Ram Lal Aggarwal, who was appointed as an Arbitrator, by order of Tewatia, J., on November 23, 1973.
(2.) A suit was filed by M/S General Assurance Society Limited and M/S Fatehabad Cotton Ginning and Pressing Factory, (hereinafter to be called Plaintiff No. 1 and Plaintiff No. 2, respectively), against M/S The Jullundur Ex -Servicemen Motor Transport Co -operative Society, Limited, (hereinafter to be called the Defendants), in the Court of the Senior Subordinate Judge, Hissar, on June 16, 1969, for the recovery of Rs. 48,000/ - as loss on the ground that Plaintiff No. 2, booked two consignments of cotton comprising (sic) bales and 75 bales from Mandi Dabwali, situated in the composite State of Punjab (now in Haryana), to Rampur, in Uttar Pradesh, with the Defendant. The Defendant company issued receipts for the same, Exhibits P 2 and P. 3, dated May 26, 1967. These consignments were unloaded at the Delhi border by the Defendant company from where the same had to be transported to the destination in Uttar Pradesh in some other trucks. Before they were transported, the goods caught fire, resulting in substantial destruction of goods. Plaintiff No. 2, served a notice on the Defendant, a copy of which is, Exhibit P.W. 9/1/A. The Defendant "submitted an application under Section 34 of the Act, for the stay of proceedings in the main suit on the plea that recording to the terms of the agreement between Plaintiff No. 2 and the Defendant, any dispute arising out of the above -mention - ed consignments, was required to be referred to arbitration, in the first instance. The trial Court dismissed the application by his order, dated April 30, 1971, which was challenged in appeal in this Court vide F.A.O. No. 149 of 1971. In appeal, however, the parties entered into a compromise to refer the matter to the arbitration of Shri Amrit Sagar Mahajan Advocate, Chardigarh. Before the finalisation and Making of the award, be, unfortunately, met with a fatel accident there - fore, the matter was referred to Shri Ram Lal Aggarwal, as an Arbitrator, by Tewatia, J.A. contention was raised by the Learned Counsel for the Defendant before Shri Ram Lal Aggarwal, Arbitrator, that no notice, under Section 10 of the Carriers Act, 1865, (hereinafter to be called the Carriers Act), had been served by any of the Plaintiffs on the Defendants, within six months, as required by that provision and, therefore, the Plaintiffs were not entitled to any claim. Mr. Ram Lal Aggarwal, Arbitrator, felt difficulty in deciding the matter on account of the fact that there was no decided case on the matter in controversy. Having come to the conclusion that the question involved was of considerable importance and the rights of the parties were likely to be materially affected, he had referred the matter to Tewatia, J., for opinion and advice, under Section 13(b) of the Act, by his reference, dated January 9, 1976. After the transfer of Tewatia, J., this case has come up for decision before me. The main and the only question for which reference has been made by the Arbitrator is whether the notice. Exhibit P. W. 9/1/A. is a valid notice under the provisions of Section 10 of the Carriers Act. The said notice is reproduced below: Messrs. The Jullundur Ex. Servicemen Motor Transport Co - operative Society, Limited, Ladowali road, Jullundur, Dear sirs. 175 (one hundred and seventy five) bales of Bengal Desi Cotton dispatched by us from Mandi Dabwali to Rampur vide your Loading Receipts Nos. 180862 and 180863 both dated 26th May, 1967, have not reached destination. They have been burnt in transit. We have suffered a loss of Rs. 72,000/ - (Rupees Seventy two thousands) on this account. You are requested to make us payment of Rs. 72,000/ - (Rupees seventy two thousand) being the cost of the above 175 bales of cotton. Our Bill/Debit Note for Rs. 72,000/ - is enclosed herewith. Yours faithfully,for Fatehabad Cotton Ginning and Pressing Factory,Sd/ - Partner.
(3.) SECTION 10 of the Carriers Act, under which such a notice is to be served on the Defendant before the filing of the suit, is to the following effect: "No suit shall be instituted against a common carrier for the loss of, or injury to, goods entrusted to him for carriage, unless notice, in writing, of the loss or injury, has been given to him before the institution of the suit and within six months of the time when the loss or injury first come to the knowledge of the Plaintiff." According to this provision, the following conditions must be satisfied before a suit against any common carrier for the loss or for injury to goods entrusted to him for carriage, is instituted: (1) Notice must be in writing; (2) It must be regarding the loss or injury incurred by the Plaintiff in the goods entrusted to the common carrier; (3) Such a notice must be served on the Defendant before the filing of the suit; and (4) The notice must be served within six months of the date when the loss or injury first came to the knowledge of the Plaintiff. According to the Learned Counsel for the Defendant, the notice, in order to be valid, must satisfy the following conditions: (1) It should be clear from the notice that it is a statutory notice under Section 10 of the Carriers Act; (2) Reasonable time must be given in the notice to the Defendant to make amends so that the latter may be able to satisfy the reasonable claim of the Plaintiff and the necessity of facing the suit may be obviated: (3) It should be clear from the notice that if the claim is not satisfied, suit will be filed; (4) The requirements of Order VI Rule 6, Code of Civil Procedure, be satisfied: (5) It should be clear from the averments in the plaint whether the suit is being filed under the provisions of the Carriers Act, or under the common Law; and (6) That the cause of action must be made clear in the said notice. A perusal of the above -mentioned notice clearly shows that the Plaintiff No. 2 clearly brought to the notice of the Defendant that the goods booked with him with reference to the loading receipts mentioned in the said notice, had not reached destination and that the same had been burnt in transit, that on this account, the Plaintiffs had sustained a loss of Rs. 72,000/ - and in the end, a request was made to the Defendant to pay the said amount of loss. To the notice, Exhibit, PW 9/1/A, reply, Exhibit DW 4/A, was received from the Defendant, in which the only objection taken was that the Defendant, was not liable to pay any loss to the Plaintiff as the consignment in dispute, was at owner's risk. The notice, Exhibit, PW 9/1/A, had been served on the Defendant within time and before the filing of the suit. From a closer glance at Section 10 of the Carriers Act, it is clear that the contents of the notice, Exhibit P.W. 9/1/A, are in conformity with the requirements of the said provision. Section 10 of the Carriers Act, nowhere provides that, in the notice, it must be specified that it is notice, under Section 10 of the Carriers Act. Regarding the time, the only requirement is that the notice must be served on the Defendant before the filing of the suit and also within six months of the incurring of the loss or injury. Section 10 of the Carriers Act, nowhere provides that a minimum prescribed period roust elapse after service of the notice and before the filing of the suit. The purpose of this section is that before the soling of the suit, representation regarding the claim of the Plaintiff should reach the Defendant so that if the latter thinks fit, he may satisfy the claim of the Plaintiff and the suit may not be filed, but it cannot be spelt out from this provision that some specific time must be given to the Defendant to satisfy the claim of the plain - tiff. It is also not the requirement of this provision that the notice must specify the intention of the Plaintiff to file the suit. However, it is inherent in the notice itself that if the claim of the Plaintiff is not satisfied, the Plaintiff will file the suit and the Defendant will have to face the litigation. The contention of the Learned Counsel for the Defendant, has also no substance, that it should be specified in the notice whether the suit would be filed under the Carriers Act, or common law.;


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