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Supreme Court of India 2016-08-16 dismissed

Virender Khullar vs American Consolidation Services Ltd. & Ors

Bench: 2 — Prafulla C. Pant

In Brief

Two exporters shipped men's apparel to the USA via consolidation agent American Consolidation Services (ACS), with cargo consigned to Central Fidelity Bank for collection. ACS handed goods to the carrier, but the Bill of Lading was altered to show Coronet Group Inc. as the consignee instead of the bank. The goods were delivered to Coronet's subsidiary (Zip Code Inc.) without payment. The shippers sued for compensation. The Supreme Court held that ACS, acting only as the buyer's agent, cannot be held liable under consumer protection law (Section 230, Indian Contract Act). Only Zip Code Inc., which took delivery without payment, was liable to compensate the shippers.

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Consumer Protection Contract Law Agency Bailment Shipping and Logistics Civil Procedure

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