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        2015 (5) TMI 403 - SC - Indian Laws

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        Steamer agent liability for demurrage and port charges continues until bill of lading endorsement or delivery order issue. The steamer agent remains liable for demurrage and port charges on goods taken charge of by the port trust, because the statutory scheme treats the port ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Steamer agent liability for demurrage and port charges continues until bill of lading endorsement or delivery order issue.

                          The steamer agent remains liable for demurrage and port charges on goods taken charge of by the port trust, because the statutory scheme treats the port trust's custody as creating a bailor-bailee relationship with the steamer agent. Liability shifts only when the bill of lading is endorsed or a delivery order is issued, at which point the consignee or endorsee becomes liable. The earlier decision on consignee liability was treated as fact-specific, as the consignee had already entered the transaction. The ship owner's limited lien does not extend to demurrage and port charges, and the Act permits recovery of port dues from goods in custody.




                          Issues: Whether the steamer agent is liable to pay demurrage and port charges to the port trust authority for goods warehoused in the port, and whether such liability changes only after endorsement of the bill of lading or issue of a delivery order.

                          Analysis: The liability to pay demurrage and port charges was held to depend on the statutory scheme governing custody of goods at the port. On a reading of the relevant provisions, the goods are taken charge of by the port trust from the ship owner or steamer agent, and in that situation the relationship is one of bailor and bailee between the steamer agent and the port trust authority. The earlier decision concerning the consignee was treated as turning on its facts, where the consignee had already entered the scene. The Court also noted that the limited lien available to the ship owner does not extend to demurrage and port charges, while the Act contains provisions enabling the port trust to recover its dues from the goods in custody.

                          Conclusion: The steamer agent remains liable for demurrage and port charges until the bill of lading is endorsed or a delivery order is issued, after which the consignee or endorsee would be liable.


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                          ActsIncome Tax
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