General Rules and schedules working of the Chittagong Port Railway Rules 122 clause (a)(ii)-Responsibility of issuing short-landing certificate for imported goods being that of the Port Authority (Chittagong), the Authority's failure to notify the consignee (plaintiff) that a certain portion of the short-landed goods were lying in certain shed not known to the plaintiff, will exonerate the plaintiff of any liability if he fails to take delivery of the same. In case these goods were in damaged condition the plaintiff, if he had such notice, could have them duly surveyed to ascertain the measure of damage for claiming compensation. Bangladesh Railway vs Messrs Chartering and Shipbroking Corporation 37 DLR (AD) 47.

Defendant 4 (Port Authority) cannot claim exemption under Rule 122(a)(ii)
Unless it could be shown that the plaintiff applied to the Port Authority for storing the cement bags and after obtaining its permission entered into an open storage agreement, as referred to in clause (a) of Rule 122, the exemptions provided in the sub-clause (ii), cannot be claimed by the Port Authority. The plaintiff did not have an iota of knowledge regarding either the storage or the number of cement bags claimed to have been stored by the Port Authority. Bangladesh Railway vs Messrs Chartering and Shipbroking Corporation 37 DLR (AD) 47.

The trial Court decreed the plaintiffs suit on contest. On appeal the High Court Division modified the trial Court's decree holding that the plaintiff could get compensation in respect of the difference between 5567 bags and 3337 bags, that is, 2230 bags; according to the High Court Division, 3337 bags out of 5567 bags were lying in Shed No. 5 of which the plaintiff failed to take delivery and on account of its failure to clear those bags from the shed it is not entitled to claim any compensation thereof. Bangladesh Railway vs Messrs Chartering and Shipbroking Corporation 37 DLR (AD) 47.

Issue of short-landing certificate is Port's responsibility-Failure to notify plaintiff about storage fact absolves plaintiff of any liability. Bangladesh Railway vs Messrs Chartering and Shipbroking Corporation 37 DLR (AD) 47.