ELLERMAN & BUCKNALL STEAMSHIP CO. LID versus SHA MISRIMAL BHERAJEE

ELLERMAN & BUCKNALL STEAMSHIP CO. LID versus SHA MISRIMAL BHERAJEE

The shipowners, with knowledge that the drums were old and in collusion with the sellers, issued clean bills of lading contrary to contract terms, intending the Bank to make payments against the documents. Taking an indemnity bond, the shipowners consciously misrepresented facts. All elements of deceit were present,...

Source-derived case information.

Parties
Appellant: Ellerman & Bucknall Steamship Co. Ltd.; Respondent: Sha Misrimal Bherajee
Jurisdiction
India
Judgment Date
29 March 1966
Procedural Posture
Civil Appeal / Appeal From Madras High Court Judgment Dated November 3, 1960 in C.c.c. Appeal No. 61 of 1957
Outcome
appeal dismissed
Legal Topics
Deceit, Clean Bill of Lading, Misrepresentation, Letters of Credit
Mercantile Law Tort Law Deceit Clean Bill of Lading Misrepresentation Letters of Credit

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Parties

Ellerman & Bucknall Steamship Co. Ltd.

Appellant

Sha Misrimal Bherajee

Respondent

Procedural Posture

Civil Appeal / Appeal From Madras High Court Judgment Dated November 3, 1960 in C.c.c. Appeal No. 61 of 1957

Legal Issues

  1. 1 Whether the shipowners are liable for deceit by issuing clean bills of lading despite knowledge that the drums were old, contrary to contract terms, and thereby causing loss to the buyer.
  2. 2 Whether the High Court erred in providing relief on the basis of deceit when the original cause of action was breach of contract.

Ratio Decidendi

The shipowners, with knowledge that the drums were old and in collusion with the sellers, issued clean bills of lading contrary to contract terms, intending the Bank to make payments against the documents. Taking an indemnity bond, the shipowners consciously misrepresented facts. All elements of deceit were present, making them liable to the buyer for the resulting loss.

Court Disposition

appeal dismissed

Orders

  • Ellerman & Bucknall Steamship Co. Ltd. held liable for deceit; appeal dismissed with costs.