Broad Definition of "Owner" Can Make a Clearing Agent Liable for Demurrage Until Customs Confiscation

Port legislation may define "owner" broadly enough to include a consignee or an agent entrusted with custody and clearance of goods. Where the endorsement on the bill of lading places the consignment with such a party, and the party does not disclose that it acts only for another licence holder, liability for demurrage and allied port charges can arise until confiscation by customs. Once the goods are confiscated under customs law, the port trust cannot rely on sale of the goods to satisfy its dues, making a lien-and-sale argument untenable.

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Issues: Whether the appellants, on the facts proved, fell within the statutory definition of "owner" and were liable to pay demurrage and other port charges, and whether confiscation of the goods by customs defeated the Port Trust's claim.

Analysis: The statutory definitions of "owner" under the relevant port laws were broad enough to include a consignee and an agent for the custody of goods. On the admitted facts, the endorsement on the bill of lading placed the consignment with the appellants, who had acted as the clearing and custody agents and had not informed the Port Trust that they were acting only for the licence holder. The obligation to clear the goods rested on them, and their failure to do so attracted liability for the charges accruing until confiscation. Once the goods had been confiscated under customs law, the Port Trust could not have resorted to sale of the goods to satisfy its dues, and the contention based on lien and sale was untenable.

Conclusion: The appellants were liable as "owners" within the meaning of the port statutes and were bound to pay the demurrage and allied charges; the challenge to the Port Trust's claim failed.

Final Conclusion: The appeal was liable to be dismissed as the High Court's decree fastening liability on the appellants for port charges was sustained.

Ratio Decidendi: Where port legislation defines "owner" to include a consignee or an agent for custody of goods, a party in possession and charged with clearing the consignment can be made liable for demurrage and related charges incurred until confiscation of the goods by customs, even if it is not the title holder.

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