JAYANTI SHIPPING CO LTD Vs. FOOD CORPORATION OF INDIA

JUDGEMENT

(1.) This is a dispute between two statutory Corporations both of which are wholly owned by the Government of India and it is unfortunate that the matter should have been dragged to court and fought out in successive courts with all the attendant expenditure of public funds instead of its being discussed and settled at a high governmental level.

(2.) The appeal arises out of a suit O. S. No. 95 of 1969 instituted in the sub Court of Cochin by the Food Corporation of India against the Jayanthi Shipping Company Ltd. which has subsequently been taken over and amalgamated with the Shipping Corporation of India Ltd. The suit is for recovery of an amount of Rs. 30,590.38 by way of damages for alleged short deiivery of goods which had been shipped at Bangkok for carriage to the Port of Cochin. The lower court upheld the claim except in respect of the amount representing proportionate insurance premium over the portion of the consignment not delivered and also the price of the gunny bags. It is against the decree so passed against it that the Shipping Corporation of India has preferred this appeal.

(3.) The plaintiff's case is that a consignment of 1,03,500 bags of Thai white rice weighing M.T. 10318.954.521 (N) was shipped in good order and condition on board the defendant's vessel S. S. Rama-jayanthi at Bangkok by the Department of Foreign Trade, Ministry of Economic Affairs, Government of Thailand for carriage to the Port of Cochin under thirty-six bills of lading. The goods were consigned to the Government of India, Ministry of Food and Agriculture (Department of Food), New Delhi and the bills of lading were duly endorsed to the plaintiff-Corporation. The vessel arrived at Cochin on 18-101968 and the discharge of cargo was commenced on 21-10-1968. The discharge was completed on 2-11-1968 and a certificate of completion was jointly signed by the Master, representatives of Stevedores and steamer agents of the vessel and by the plaintiff's representatives. As per the outturn statement dated 5-12-1968 issued by the Port Trust of Cochin there was a short landing of 563 bags of rice. Out of the 1,03,500 bags of rice shipped as per the bills of lading only 1,01,048 bags were delivered in good condition. 1,889 bags of rice were discharged in torn, cut and slack condition. It was further found out that the cargo of rice in hatches Nos. 1 and 5 in the ship were contaminated with sulphur particles. The said matter was intimated to the master of the vessel by letter dated 24-10-1968. After giving due intimation to the Master of the vessel as well as to the agents of the ship at Cochin (2nd defendant) a hatch survey was conducted by Messrs. Kamath and D'Abrao and they submitted their survey report No. 68/1083 dated 7-12-1968. Subsequently a survey of the slack, cut and torn bags was also conducted by Messrs. Kamath and D'Abrao and survey report No. 68/1085 dated 9-12-1968 was submitted by them. As per the survey report the total weight of 1889 slack, cut and torn bags was M. T. 127.672.100 (N). The weight of 152 bags of rice contaminated with sulphur particles was found to be M.T. 13.44.808. The weight of 241 bags of steamer sweepings was found to be M.T. 20.933.939 and that of 840 bags of shed sweepings M.T. 71.262.360. Towards the value of the goods short delivered and damage as well as their proportionate freight and insurance charges together with surveyors' fee the plaintiff issued to the defendant a claim bill for Rs. 30,590.38. But the defendants failed to pay the said amount or any portion thereof. The plaintiff's case is that the defendants having failed to deliver to them at Cochin the exact weight and number of bags of rice shipped at Bangkok in the same good order and condition as they were at the time of shipping, the defendants committed a breach of contract and are liable to the plaintiff for damages to the extent of the amount aforementioned.