The consignor of goods filed a claim against the insurance company and transporter for damage caused by fire in transit. The insurer contended that –
the truck was insured only against third party liability and
the consignor could not come within the category of third party
This contention was rejected and the insurer was directed to pay the value of the goods destroyed reducing the rate of interest from 15 per cent to 11 per cent. The National Commission has relied upon the following passage in HALSBURY’s LAWS OF ENGLAND.
“Where goods have been delivered to a carrier, and they are lost, or damaged, the owner of the goods is the proper person to sue for damages. A consignor who consigns only as an agent, and has no property in the contract. Nevertheless, where the goods are at the consignor’s risk until delivery to the consignee, the consignor may have a special property in the goods, as bailor, sufficient to entitle him to sue”.(United India Insurance Co. Ltd Vs. G.N. Sainani, (1996)3 CPJ 147 (NC).