Documentary sanctity in contract of carriage by sea (with special reference to the bills of lading): Overview of Malaysian position

• Main Author: Ahmad Sharif, Nurretina
• Format: Book Section
• Language: English
• Published: Universitas Islam Riau Indonesia 2010
• Subjects: K Law (General)
• Online Access: http://repo.uum.edu.my/2722/1/NURRETINA.pdf; http://repo.uum.edu.my/2722/

Documentary sanctity is the norm; the backbone of the international sale transactions particularly when it involves contract of carriage by sea. Under this norm, the trader is able to rely on the statements in the bill of lading as conclusive since the bill of lading is regarded as an essential part of shipping documents where sea carriage is envisaged. Hence, the bill of lading in the hands of the consignee or endorsee representing goods to have been shipped on board a vessel shall be conclusive evidence of such shipment as against the master or other person signing it, regardless of the fact that the goods may not have been shipped on board. However, the decision in the common law rule in Grant v Norway seems to defeat the object of a bill of lading and effectively derogates the sanctity of the bill of lading. Since Malaysia inherited the common law principle from the colonial, this paper seeks to examine to what extent the courts in Malaysia would be willing to uphold the sanctity of documents in cases of fraudulent misstatements as to quantity of goods in the bills of lading? Whether the diverse methods by which the English and other commonwealth judges have conferred protection on the holder of the bills of lading be seen as strands that may influence the local court?