Law: Contract Act (IX of 1872)

Section: 151 , 152

Law: Insurance Act, 1938

Section: 2 - A

JUDGMENT

This is a suit for the recovery of Rs. 1,00,914. Plaintiff is Messrs Foremost Trading Co., a partnership firm. Defendant No. I is Caledonian Insurance Company Limited and defendant No. 2 is the Eastern Mercantile Bank Ltd. (hereinafter referred to as "the Bank"). The case of the plaintiff, as set out in the plaint, is that in 1964 the plaintiff, who is an importer, and the Bank had entered into a contract of bailment whereby the defendant No. 2 was holding at their godown in Dacca as bailee the plaintiffs' goods namely cases of playing cards that were sent to the Bank from time to time through the plaintiff's clearing agents in Chittagong. The goods were kept in a go down which had been hired by the Bank and in which go down not only the goods of the plaintiffs were stored but goods of other parties were also stored. According to the plaintiff, the Bank was required to dispose of the goods according to the plaintiff's delivery orders sent to the Bank from Karachi and from the proceeds crediting the plaintiff's account with the Bank. The plaintiff's case is that the Bank as bailee of the goods of the plaintiff was bound to keep watch, guard and preserve the said goods in the usual manner in the ordinary course of business and was, as bailee. Responsible for any damage thereto while the goods were in their possession and in respect of which the Bank was getting remuneration for handling and storage.