Goods Detained by the transporter

P.C. Joshi (Querist) 16 February 2010 This query is : Resolved
A Ltd deducted Rs 3.5 lacs from B Ltd, atranporter on account of goods lost in transit(diff of actual claim and amount recd. from the insurers). The deduction was agreed and accepted by B Ltd in writing.

The business afterward continued betwen the two compnaies. After almost 6 months, A Ltd handedover three consignments of diff. location to B ltd for delivery. B Ltd detained two consignments and sent a letter demanding intt. of Rs 5 lacs on delayed payments of earlier period and release of Rs. 3.5 lacs deducted on account of insurance, thogh B Ltd has alreday accepted in wrtiting. But now B Ltd says that the letter was given by them under pressure to get the overdue payment released from A Ltd. The material has been detained by B Ltd for more than 4 months.

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

Can anysone suggest the merits and demrits of A Ltd in the present case.

B Ltd on the back of its L.R. printed certainan terms & conditions of their tranport contract, which inet alia includes that they are entitled to lien on the goods to recover the outstanding payments/dues. Does this clause legally entitle B Ltd to detain the goods.

prompt responses are solicited.

Regards

P.c. joshi

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