Navigating Lost Goods: Legal Options with Legal Light Consulting

On February 14, 2025, a shipment of goods was completely lost, creating a legal dispute. If you’re facing this situation, Legal Light Consulting is here to help you understand your options. This article will break down the potential remedies in simple terms.

On 14-02-2025, a dispute arose due to a shipment in which the goods were completely lost. Let’s explore this scenario in detail and the possible legal remedies to address such a situation, especially for a firm like Legal Light Consulting – LLC.

Understanding the Problem:

A contract was likely in place for the shipment of goods. The loss of these goods represents a breach of that contract. We will explore three main legal avenues: Mediation, Compensation, and Specific Performance.

1. Mediation: Trying to Settle Out of Court

Mediation is a process where a neutral third party helps both sides reach an agreement. It’s often quicker and cheaper than going to court.   

Scenario Overview

• Date of Dispute: 14-02-2025
• Reason: Goods were completely lost during shipment.

Probable Remedies and Legal Actions

1. Mediation

Mediation is a process where a neutral third party helps the disputing parties reach a settlement. In this case, mediation notice has been served as mandatory, but mediation has not been initiated yet, which is a requirement.

Act & Section:

• The Commercial Courts Act, 2015
  • Section 12A: Pre-Institution Mediation and Settlement

Procedural Aspects:

• The Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018
  • Rule 3: Initiation of mediation process
  • Rule 6: Representation of parties
  • Rule 7: Procedure of Mediation
• The Mediation Act, 2023
  • Section 5: Pre-litigation mediation
  • Section 13: Territorial jurisdiction to undertake mediation
  • Section 29: Limitation

2. Compensation

Compensation refers to the payment given to the aggrieved party for the loss or damage incurred.

Act & Section:

• The Indian Contract Act, 1872
  • Section 73: Compensation for loss or damage caused by breach of contract
  • Section 74: Compensation for breach of contract where penalty stipulated for
  • Section 75: Party rightfully rescinding contract, entitled to compensation
  • Section 151: Care to be taken by bailee
• The Carriage By Road Act, 2007
  • Section 10: Liability of common carrier
  • Section 12: Conditions limiting or exonerating the liability of the common carrier
• The Sales of Goods Act, 1930
  • Section 16: Implied conditions as to quality or fitness
  • Section 58: Specific performance
  • Section 59: Remedy for breach of warranty
  • Section 61: Interest by way of damages and special damages

Territorial Jurisdiction:

• Delhi (Residence of the other party).

Limitation:

• File a case before 14-02-2028 (3 years from the date of breach of contract, i.e., 14-02-2025).

Pecuniary Jurisdiction:

• High Courts of Delhi

Court Fees:

• Rs. 534,849.60/-

3. Specific Performance

Specific performance is a legal remedy where the court orders the party in breach to perform their obligations under the contract.

Act & Section:

• The Specific Relief Act, 1963
  • Section 39: Mandatory injunctions
  • Section 40: Damages in lieu of, or in addition to, injunction
• The Indian Carriage of Goods By Sea Act, 1925
  • Article III: Responsibilities and Liabilities
  • Article III(8): Carriage contract clauses attempting to relieve carrier liability for negligence or failing to meet duties under these Rules are void
• The Railways Act, 1989
  • Section 93: General responsibility of a railway administration as carrier of goods
  • Section 98: Goods in defective condition or defectively packed
  • Section 104: Extent of liability in respect of goods carried in open wagon

Territorial Jurisdiction:

• Delhi (Residence of the other party).

Limitation:

• File a case before 14-02-2028 (3 years from the date of breach of contract, i.e., 14-02-2025).

Pecuniary Jurisdiction:

• High Courts of Delhi

Court Fees:

• Rs. 534,849.60/-

Procedural Aspects

The Indian Contract Act, 1872

• Section 73: Compensation for loss or damage caused by breach of contract

The Carriage By Road Act, 2007

• Section 10: Liability of common carrier
• Section 12: Conditions limiting or exonerating the liability of the common carrier
• Section 16: Notice for Institution of suit
• Section 18: Punishment for contravention in relation to non-registration, carrying goods of dangerous or hazardous nature, or prohibited goods

The Sales of Goods Act, 1930

• Section 56: Damages for Non-Acceptance
• Section 57: Damages for Non-Delivery
• Section 59: Remedy for breach of warranty
• Section 61: Interest by way of damages and special damages

The Specific Relief Act, 1963

• Section 20: Substituted performance of contract
• Section 21: Power to award compensation in certain cases
• Section 22: Power to grant relief for possession, partition, refund of earnest money

The Indian Carriage of Goods by Sea Act, 1925

• Section 2: Application of Rules
• Section 5: Modification of Article VI of rules in relation to goods carried in sailing ship by prescribed routes

The Railways Act, 1989

• Section 107: Application for compensation for loss of goods
• Section 108: Specifies the person entitled to claim compensation

• The Law:
  • The Commercial Courts Act, 2015, Section 12A, makes pre-institution mediation mandatory for commercial disputes.   
  • The Mediation Act, 2023, Section 5, also emphasizes pre-litigation mediation.   
• What This Means:
  • A legal notice was served, which is a required first step.
  • However, the required mediation process has not yet been initiated. This is a mandatory step that must be taken.
  • The Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018, outline how mediation should be conducted, including how parties are represented and the procedures to be followed.   
  • The mediation can take place in Delhi due to the other party residing there.
• Why It’s Important:
  • Mediation can help you resolve the dispute without the expense and time of a court case.   

2. Compensation: Getting Money for Your Losses

If mediation fails or you prefer to seek damages, you can pursue compensation.

• The Law:
  • The Indian Contract Act, 1872, Sections 73, 74, and 75, allow you to claim compensation for losses caused by a breach of contract.   
  • The Carriage By Road Act, 2007, Sections 10 and 12, deal with the liability of carriers.   
  • The Sales of Goods Act, 1930, Sections 16, 58, 59, and 61, provide remedies for breaches related to the sale of goods.

Conclusion

This article is for educational and informational purposes only. The information provided here is intended to offer general knowledge about legal matters but does not constitute legal advice. Legal Light Consulting, as a law firm, does not take any responsibility for the accuracy or completeness of the content shared in this article.

Due to the complexity of legal processes and potential variations depending on your work/business type or location, it is highly recommended that you seek professional assistance from legal experts like Legal Light Consulting. Their experienced team of lawyers can guide you through various legal procedures and help ensure a smooth and hassle-free process.

This article is for educational and informational purposes only. The information provided here is intended to offer general knowledge about legal matters but does not constitute legal advice. Legal Light Consulting, as a law firm, does not take any responsibility for the accuracy or completeness of the content shared in this article.

Due to the complexity of legal processes and potential variations depending on your work/business type or location, it is highly recommended that you seek professional assistance from legal experts like Legal Light Consulting. Their experienced team of lawyers can guide you through various legal procedures and help ensure a smooth and hassle-free process.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific legal guidance, please consult a qualified lawyer.