Port charge recovery under limitation turns on loss of control over goods and communication of confiscation orders.

For recovery of port charges under Section 58 of the Major Port Trusts Act, the cause of action crystallises when the Port Trust loses control over the goods, including by confiscation that operates as juridical removal. Limitation under Article 113 of the Limitation Act runs from the date the confiscation order is passed, but if the order is not communicated on that date, accrual of the right to sue is deferred until actual or constructive communication. The article also notes that authorities relied on by the trial court were inapplicable because they did not address accrual of the right to sue under Section 58, and the suit was held to be within limitation.

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Issues: Whether the suit for recovery of port charges was barred by limitation in view of Section 58 of the Major Port Trusts Act and Article 113 of the Limitation Act, 1963.

Analysis: Section 58 is an enabling provision under which rates for goods in the custody of the Port Trust become payable on landing, but the right to recover them crystallises when the goods are removed from the control of the Port Trust. A confiscation order by the Customs Authorities has the legal effect of depriving the Port Trust of control over the goods, and therefore operates as a juridical removal for the purpose of accrual of the cause of action. Limitation would ordinarily begin when the confiscation order is passed. However, where the order is not communicated to the Port Trust on the date of its making, the right to sue accrues only on actual or constructive communication of that order. The decisions relied upon by the trial court were found inapplicable because they did not decide the present question of accrual of the right to sue under Section 58.

Conclusion: The suit was within limitation, and the trial court erred in holding it barred.

Ratio Decidendi: For claims under Section 58 of the Major Port Trusts Act, the cause of action to recover port rates or demurrage crystallises when the Port Trust loses control over the goods by removal or confiscation, and limitation under Article 113 of the Limitation Act, 1963 runs from the date of actual or constructive communication of the confiscation order where such communication is material to accrual of the right to sue.

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