Court rules in favor of steamer agent, Kolkata Port Trust liable for cargo loss.

The court held that Kolkata Port Trust (KPT) was not entitled to recover demurrage charges from the steamer agent (ITM) post-endorsement of the bill of lading and issuance of the delivery order. ITM was not liable for port charges incurred after these actions. KPT's lack of diligence in exercising statutory rights under the Major Port Trusts Act led to the cargo becoming valueless, holding KPT responsible for the loss. ITM was not responsible for the destuffing charges, and was directed to withdraw the deposited amount. The appeal and cross-objection were disposed of without costs.

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Issues Involved:
1. Extent of Kolkata Port Trust's (KPT) entitlement to recover demurrage charges from the respondent.
2. Liability of the steamer agent (ITM) for port charges incurred due to storage of goods.
3. Applicability of Sections 61 and 62 of the Major Port Trusts Act, 1963.
4. Responsibility for destuffing charges of the containers.

Detailed Analysis:

1. Extent of KPT's Entitlement to Recover Demurrage Charges:
The appeal questioned the extent to which KPT could recover demurrage charges from ITM for containers carrying poppy seeds imported from Karachi to Kolkata en route to Nepal. The court noted that the consignee abandoned the goods, leading to the containers being stuck at the port, causing commercial loss to ITM. The court held that KPT was not entitled to debit ITM's Marine A/c for demurrage charges incurred after the endorsement of the bill of lading and issuance of delivery order. The court emphasized that ITM was running from pillar to post to get permission for destuffing, and the delay was attributable to KPT's lack of diligence.

2. Liability of the Steamer Agent (ITM) for Port Charges:
The court reiterated that the liability of a carrier or steamer agent is limited. Once the goods are off-loaded, the bill of lading is endorsed, and the delivery order is issued, the carrier or its agent is discharged of its obligations. The consignee or its agent becomes liable for port charges. The court referred to the Supreme Court's decision in K.P.V. Sheikh Mohd. Rawther & Co. Pvt. Ltd., which held that the consignee is liable for port dues after the endorsement of the bill of lading or issuance of the delivery order. Consequently, ITM was not liable for port charges incurred after these actions.

3. Applicability of Sections 61 and 62 of the Major Port Trusts Act, 1963:
The court noted that KPT had statutory rights under Sections 61 and 62 of the Major Port Trusts Act to sell the goods to recover dues if the consignee fails to remove them. However, KPT did not exercise these rights diligently. The court criticized KPT for its tardy conduct, which allowed the cargo to become valueless, and held that KPT was responsible for the loss. The court emphasized that KPT's claim for demurrage charges should be directed towards the consignee, not ITM.

4. Responsibility for Destuffing Charges:
The court found that ITM should not bear the cost of destuffing the containers, as the obligation to destuff lies with the consignee or its agent. The court referred to the Division Bench order dated 4 December 1996, which recorded that ITM would not be liable for any claims by the authorities against the owner of the destuffed cargo. Thus, ITM was not responsible for the destuffing charges amounting to Rs. 6,84,849.80.

Conclusion:
The court concluded that ITM was not liable for demurrage charges post-endorsement of the bill of lading and issuance of the delivery order. Any debit entries made by KPT in ITM's Marine A/c for such charges must be reversed. ITM was also not liable for the destuffing charges. The court directed that ITM could withdraw the Rs. 14 lakhs deposited with its Advocate on record, along with accrued interest. KPT was advised to pursue its claims against the consignee or the cargo in question in accordance with the law. The appeal and cross-objection were disposed of without any order as to costs.

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