9911796707
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Issues involved:
The judgment involves the challenge to a suit for recovery of money due to loss of goods, with issues including non-joinder of necessary party, lack of privity of contract, liability of bailee, and exchange rate calculation. Non-joinder of necessary party: The Trial Court appropriately addressed the issue of non-joinder of M/s. KLM Airlines as a necessary party, ruling that the Appellant, as the handling agent, cannot escape liability for the lost consignment. The contract between the Appellant and the carrier indemnifies the Appellant but does not exempt it from liability towards the Respondent. The law allows the bailor to directly sue the sub-bailee for the value of lost goods, irrespective of the lack of privity of contract between the parties. Lack of privity of contract: The argument that there was no privity of contract between the Appellant and the Respondent was rejected by the Court. The Appellant's role as an agent of M/s. KLM carrier makes it liable for the lost goods, even without a direct contract with the Respondent. The agreement between the Appellant and the carrier does not absolve the Appellant of responsibility for the lost consignment. Liability of bailee: The Appellant's defense of having taken due care as a bailee was refuted based on Sections 151 and 152 of the Contract Act, 1872. The Court clarified that in cases of carriage by air, the liability of the bailee or sub-bailee is governed by the Carriage by Air Act, 1972, not the Contract Act. The strict liability of carriers under relevant Acts precludes them from evading responsibility by sub-bailment. Exchange rate calculation: The Court upheld the Trial Court's decision to use the conversion rate of foreign currency on the date of judgment for awarding damages. Citing a Supreme Court decision, it was established that the conversion rate on the date of judgment is appropriate for suits involving foreign currency. The Appellant's argument to use the rate on the date of booking the consignment was dismissed. The appeal was deemed without merit and dismissed, with each party bearing their own costs and the bank guarantee discharged.
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