Legal Question in Admiralty Law in New York

Delivery without Bill of Lading

We are a manufacturer based in India. In Aug 2001 we shipped goods to an importer in New York, on D/P Sight basis. B/L was made to the order of the buyer's bank, and was sent to his bank. The carrier has released goods without B/L to buyer, and we have not yet recd our payment.

It is a little over 1 year since goods were delivered by carrier. What is the time limit for moving against the carrier if US law is applicable?

If we hv exceeded the time-bar, can the delay be condoned because the importer was promising to make the payment throughout the one year, and we were not aware that he has taken delivery of the goods?

Is this a criminal offence?


Asked on 11/05/02, 11:48 am

2 Answers from Attorneys

Mahesh T. Pai M. A. T. Pai & Mahesh T. Pai

Re: Delivery without Bill of Lading

You can proceed against the carrier. I suppose that they have proper agents or representatives in India. Since you are based in India, proceeding agaisnt the carrier will be more effective - remedy wise and cost wise - rather than going to the US. If you provide me with details of the transaction, I might be able to help you.

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Answered on 11/05/02, 1:24 pm
Kamal Verma Kamal V. Verma & Associates

Re: Delivery without Bill of Lading

Dear Sir,

Prima facie it appears that the goods in

question was delivered without B/L by the carrier

to the buyer's bank / importer. Normally, in

practice it is not possible by any carrier to

release the goods without B/L. If you place

complete records with us, then we shall actually

guide you what course of action we shall take.

However, you are vested with following legal

remedies :-

1. To pursue legal action in India against

carrier's / carrier agent in India for their

criminal negligence.

2. To arrest the carrier's vessel in India. This

shall be possible only when the importer expressly

denies in writing that he has not received the

cargo from the concerned carrier. Or else, you

can initiate legal action under "Attachment before

Judgement" - Order 38 of Civil Procedure Code,

1908.

3. To pursue legal action as per US laws against

importer, if the importer has defrauded you for

non-payment and has acknowledge the receipt of cargo.

4. To take-up the matter before concerned P & I

club in which the concerned vessel of the carrier

is insured / entered.

Regarding limitation period of 1 year, you shall

take legal action within the period of 1 one year.

This period of one year shall start from the

date of offence / negligence committed by the

carrier. No delay is condoned. However, this

limitation period is applicable only in case of

arrest and attachment of vessel.

In my opinion, you must initiate immediate legal

action against offenders without further delay.

Please confirm the receipt of message.

Regards,

Kamal V. Verma [Advocate],

T.H.X. - 48,

Adipur - Kutch,

Kandla Port,

Gujarat - 370 205. India.

Telefax : 0091-2836-62010.

E-mail : [email protected]

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Answered on 11/08/02, 6:47 am


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