Statutory demurrage on delayed cargo removal upheld despite strike and absence of importer fault

Demurrage charged by a Port Trust for cargo left in transit sheds beyond the free period was treated as a statutory levy recoverable under the scale of rates framed under the Major Port Trusts Act. The Madras HC held that overside delivery required removal within the free days, and a strike by trailer workmen did not shift liability to the Port Trust. The record did not show that the importers had arranged vehicles and were prevented by port officials from clearing the cargo. Because demurrage is a statutory charge, the absence of fault by the importers did not, by itself, justify refund. The claim for refund was rejected and the levy was upheld.

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Issues: Whether the appellants were entitled to refund of demurrage charged by the Port Trust for the period during which the cargo remained in the transit sheds after expiry of the free days.

Analysis: The cargo was covered by overside delivery and was required to be removed from the Port within the free period. The Port Trust's scale of rates, framed under the Major Port Trusts Act, treated demurrage as a charge recoverable on goods left in the transit sheds beyond the free days. The fact that delay in removal was caused by a strike of trailer workmen, who were not employees of the Port Trust, did not shift the liability to the respondent. The record did not establish that the appellants had arranged vehicles for removal and were prevented by the Port authorities. Demurrage is a statutory charge and not a service fee, and the absence of fault on the part of the importer does not by itself avoid the levy.

Conclusion: The appellants were not entitled to refund of demurrage, and the levy was upheld.

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