LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Does transporter has lien on goods detained by him for non-payment of overdue charges

(Querist) 29 August 2014 This query is : Resolved 
a Ltd company deducted Rs. 3.5 lacs from my client (being a transporter), on account of goods lost in transit(diff of actual claim and amount recd. from the insurers). The deduction was agreed and accepted by my client in writing.

The business afterward continued between my client & the said Ltd company. After almost 6 months, the Ltd company handed over three consignments of diff. location to my client for delivery. My client detained two consignments and sent a letter demanding interest of Rs. 5 lacs on delayed payments of earlier period and release of Rs. 3.5 lacs deducted on account of insurance, though my client has already accepted in writing. But now my client says that the letter was given by him under pressure to get the overdue payment released from the said Ltd company.

The Ltd company makes up mind to lodge an FIR u/s 407 IPC.

Can anyone suggest the merits and demerits of my client & the said Ltd company in the present case.

My client on the back of its L.R. printed certain terms & conditions of their transport contract, which includes that they are entitled to lien on the goods to recover the outstanding payments/dues. Does this clause legally entitle my client to detain the goods.

So, Please Please Please....help me & guide me with prompt responses;

Thanks in Advance....
Sudhir Kumar, Advocate (Expert) 30 August 2014
the dues pertaining to earlier transaction cannot be pressed on current transaction.

you client appears to be on wrong side.
malipeddi jaggarao (Expert) 30 August 2014
the lien of the transporter on the goods is limited to recover the transportation charges of that particular consignment only. Detaining consignments handed over to the transport company for delivery is against law as it does not have any lien on these consignments. Your client is certainly on wrong side. The Co., may take legal action and claim for damages apart from the value of goods.
ajay sethi (Expert) 30 August 2014
agree with MR Malipeddi . in addition your client had duly accepted deduction of Rs 3.5 0 lakhs in writing . hence claim of your clients is misconceived and not maintainable
Rajendra K Goyal (Expert) 30 August 2014
Agree with the expert.
T. Kalaiselvan, Advocate (Expert) 03 September 2014
I too agree with the opinions of expert Mr. Malipeddi Jagga Rao in this regard. The detention of goods by the transporter can be termed illegal and a criminal offence under the cited section of law.


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :