Port Trust's Ground Rent limited to 75 days per TAMP Orders. Liability for demurrage charges shifts upon goods' transfer.

The court held that the Port Trust could demand "Ground Rent" only up to a maximum of 75 days as specified by TAMP Orders. The definition of "owner" under Section 2(o) of the MPT Act includes steamer agents. Once the Port Trust takes charge of goods, the vessel or its agent is absolved from liability for demurrage charges. The Port Trust can recover dues from the owner or person entitled to the goods, not from the steamer agent. Containers must be destuffed and returned to the shipping agent, with the Port Trust obligated to destuff containers within a reasonable period.

---

---

Issues: (i) Whether, under the Major Port Trusts Act, 1963, liability for storage charges and demurrage after the Port Trust has taken charge of imported goods lies with the vessel or steamer agent, or with the owner or person entitled to the goods; (ii) whether the point of time when title passes under the bill of lading is relevant for fixing liability to pay port charges; and (iii) whether the word "may" in sections 61 and 62 of the Major Port Trusts Act, 1963 is to be read as "shall", and whether the Port Trust is under a duty to destuff containers and return empty containers within a fixed time.

Issue (i): Whether, under the Major Port Trusts Act, 1963, liability for storage charges and demurrage after the Port Trust has taken charge of imported goods lies with the vessel or steamer agent, or with the owner or person entitled to the goods.

Analysis: The statutory scheme distinguishes between services rendered up to the stage of landing and taking charge of the goods, and services rendered after the goods are stored in the custody of the Port Trust. The inclusive definition of "owner" in relation to goods, the lien provisions, and the scheme of sale and recovery under sections 59 to 63 show that, after the Port Trust takes charge of the goods and issues receipt, the port dues for storage and demurrage attach to the owner, consignee, importer, or person entitled to the goods. The vessel or its agent may be answerable only for dues connected with landing and allied services before that stage.

Conclusion: Liability for post-custody storage charges and demurrage is not on the steamer agent but on the owner or person entitled to the goods; the Revenue's position was accepted to that extent.

Issue (ii): Whether the point of time when title passes under the bill of lading is relevant for fixing liability to pay port charges.

Analysis: The Court held that the endorsement on a bill of lading by a steamer agent for delivery is distinct from an endorsement by the owner of the goods that transfers title. For purposes of port charges, the decisive factor is not the passage of title but the statutory point at which the Port Trust takes charge of the goods and issues receipt. The liability analysis therefore turns on the Port Trust's custody and the statutory scheme, not on when ownership formally passes under commercial documents.

Conclusion: The timing of passage of title is irrelevant to the liability for Port Trust charges; the question was answered against the contention that title controls liability.

Issue (iii): Whether the word "may" in sections 61 and 62 of the Major Port Trusts Act, 1963 is to be read as "shall", and whether the Port Trust is under a duty to destuff containers and return empty containers within a fixed time.

Analysis: The power to sell goods under sections 61 and 62 is discretionary and not mandatory. However, that discretion is not unfettered, because a Port Trust is a public authority bound by Article 14 to act reasonably. The Court held that the Port Trust should ordinarily proceed to sell goods within a reasonable time, with four months from landing indicated as the outer limit in the usual course, while also recognising practical constraints at a port. As to containers, the Court treated them as receptacles distinct from the imported goods and held that, where goods are not to be retained in the container, the Port Trust should destuff and return the container as soon as feasible.

Conclusion: "May" is not to be read as "shall", but the Port Trust must act reasonably within constitutional limits; the specific contention that the Port Trust had an absolute mandatory duty to sell within the statutory period was rejected.

Final Conclusion: The appeals were disposed of with the legal position clarified that post-custody demurrage and storage charges are recoverable from the owner or person entitled to the goods, while the Port Trust's power to sell under the Act remains discretionary but subject to a duty of reasonable action.

Ratio Decidendi: Under the Major Port Trusts Act, 1963, liability for storage charges and demurrage after the Port Trust takes charge of imported goods rests with the owner, importer, consignee, or person entitled to the goods, while the Port Trust's power to sell stored goods is discretionary though constrained by Article 14 to be exercised within a reasonable time.

---