Carrier and Insurer – Liability: Carriers Act 1863 – sec 8 & 9

The MSEB placed an order with M/s. Kirloskar Electric Co. for
supply of a transformer. The transformer was to be unloaded at Nandgaon Railway
Station and then transported to Aurangabad. The respondent, Shri Sanjay Salunke
had undertaken the contract of transporting the transformer. The MSEB insured
the operation of unloading the transformer and transporting it to the concerned
sub-station with the Government Insurance Fund. There was no privity of contract
between Mr. Salunke and the Government Insurance Fund (the defendants).

While unloading the transformer within the premises of
Nandgaon Railway Station, it toppled down from the trailer of Shri. Salunke and
was damaged. Thereafter, the transformer was sent back for repairs to Bangalore,
and M/s. Kirloskar Electric repaired it and sent it back. The MSEB contended
that due to negligence of the defendant, i.e., Mr. Salunke, it suffered loss
and, therefore, both the defendants, i.e., Mr. Salunke and the Government
Insurance Fund were liable to pay for the same.

The Hon’ble Court observed that under section 9 of the
Carriers Act, 1865, negligence on the part of the carrier need not be
established by the complainant, i.e., the owner of the goods. Therefore, Mr.
Salunke was liable for the damage caused to the transformer. The insurance was
taken during transport so as to save the appellant company from possible losses;
so, merely because the contractor was negligent, the Government. Insurance Fund
cannot avoid its responsibility. At most it will be in a position to recover the
amount, if paid, from the transport contractor. The court, therefore, held that
both the defendants were jointly and severally liable to bear the loss suffered
by the appellant, the MSEB.