VidhiSangh

Supreme Court of India · 10/11/2022

M/S BAWA PAULINS PVT. LTD. versus UPS FREIGHT SERVICES (INDIA) PVT. LTD. AND ANOTHER

[2022] 9 S.C.R. 1162 · 2022 INSC 1194

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

An exporter shipped messenger bags worth about Rs 13.8 lakh FOB New Delhi to a US buyer, with payment by letter of credit. The buyer's forwarding agents issued a cargo receipt that wrongly named JNPT Bombay as the port of loading. The buyer's bank cited that discrepancy, among others, in refusing the documents, and the exporter was never paid. The State Commission awarded the full value. The National Commission cut the award to Rs 10,000, blaming the exporter for not spotting the error. The Supreme Court restored the State Commission's award. The agents admitted the error despite clear shipping instructions, and that was the deficiency that led to non-payment. The exporter could not be faulted for lack of vigilance.

Issues

  1. Whether, the forwarding agents having admittedly entered the wrong port of loading in the Forwarder Cargo Receipt, the National Commission was justified in reducing compensation to the exporter on the ground that it should have noticed the mistake.

Provisions considered

Held

Result

Civil Appeal No. 8298 of 2022 allowed; the National Commission's order dated 30.04.2015 in First Appeal No. 6 of 2010 set aside and the State Commission's award of Rs 13,79,901, Rs 50,000 compensation and Rs 10,000 costs restored, payable jointly and severally within two months.

Judgment PDF: Supreme Court of India, [2022] 9 S.C.R. 1162.