TMI Blog2015 (5) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the Port Trust authority can be held to come into existence under Section 42(2) read with Section 43(1)(ii) of the Act of 1963. - once the bill of lading is endorsed or the delivery order is issued it is the consignee or endorsee who would be liable to pay the demurrage charges and other dues of the Port Trust authority. In all other situations the contract of bailment is one between the Steamer Agent (bailor) and the Port Trust Authority (bailee) giving rise to the liability of the Steamer Agent for such charges till such time that the bill of lading is endorsed or delivery order is issued by the Steamer Agent. - Ordinarily and in the normal course if resort is made to the enabling provisions in the Act of 1963 to proceed against the goods for recovery of the charges payable to the Port Trust authority there may not be any occasion for the said authority to sustain any loss or even suffer any shortfall of the dues payable to it so as to initiate recovery proceedings against the ship owners. - Decided against appellant. - Civil Appeal Nos. 2134 of 2006 with 7088, 7092, 7094 of 2002 & 802 of 2005 and 10719 of 2014 - - - Dated:- 3-12-2014 - Ranjan Gogoi and R.K. Agrawal, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e consignee thereby transferring the property in the goods to the consignee whereas in the present case the consignee had not attempted to clear the bill of lading and had also not responded to the notices issued. 4. The facts in Civil Appeal arising out of SLP(C) No. 4221/2012 are largely identical with what has been stated above. Civil Appeal Nos. 7088/2002, 7092/2002, 7094/2002 and 802/2005 5. In all these cases a Resolution of the Board of Trustees for the Port of Calcutta dated 21-10-1982 was challenged by which it was, inter alia, resolved that rent on cargo transported in containers may be recovered from the marine account of the Steamer Agent from the 16th day from the date of landing of the container if de-stuffing thereof is not done within the free time of 15 days. The challenge to the aforesaid Resolution by the Steamer Agent before the High Court having been negatived the appeals in question have been preferred before this Court. 6. On behalf of the appellants it has been argued that under the provisions of the Major Port Trust Act, 1963 (hereinafter referred to as the Act of 1963 ); the byelaws of the Port Trust authority and the schedule of rates framed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have the effect of confining the ratio of the judgment only to situations where the bill of lading has been endorsed or the delivery order has been issued by the Steamer Agent. This is because by operation of Section 2(o) of the Act of 1963 Owner includes a consignee but not a Steamer Agent. Therefore, endorsement of the bill of lading or delivery order is not determinative. The above stand has been further sought to be fortified by referring to the approval by this Court of the view expressed by the High Court of Madras that making a Steamer Agent liable for demurrage charges/port rent would be imposing a too onerous and unexpected responsibility on the steamer which is only a carrier and further that if Steamer Agents are submitted to such a responsibility, in most cases where the goods are detained without delivery in the hands of the Port Trust at the instance of the customs the steamer or steamer agent have to pay towards storage or demurrage charges amounts quite disproportionate to the freight they collect for the carriage of the goods. It is, therefore, submitted that the absence of liability of Steamer Agents for demurrage charges/port rent was decided on certain bro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easonably fall on a Steamer Agent if on a construction of the provisions of the Act such a conclusion can be reached. Determination of the aforesaid question really does not hinge on the meaning of the expression Owner as appearing in Section 2(o) of the Act of 1963, as has been sought to be urged on behalf of the appellant though going by the language of Section 2(o) and the other provisions of the Act especially Section 42, an owner would include a ship owner or his agent. Otherwise it is difficult to reconcile how custody of the goods for the purpose of rendering services under Section 42 can be entrusted to the Port Trust authority by the owner as provided therein under Section 42(2). At that stage the goods may still be in the custody of the ship owner under a separate bailment with the shipper or the consignor, as may be. Even de hors the above question the liability to pay demurrage charges and port rent would accrue to the account of the Steamer Agent if a contract of bailment between the Steamer Agent and the Port Trust authority can be held to come into existence under Section 42(2) read with Section 43(1)(ii) of the Act of 1963. For the reasons already indicated the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other situations the contract of bailment is one between the Steamer Agent (bailor) and the Port Trust Authority (bailee) giving rise to the liability of the Steamer Agent for such charges till such time that the bill of lading is endorsed or delivery order is issued by the Steamer Agent. 12. In the orders of the Calcutta High Court under challenge, it is mentioned that Section 60 of the Act provides a remedy to the Steamer Agent to recover the dues from the consignee. Section 60 of the Act of 1963 confers a limited lien on the ship owner for freight and other charges payable to the ship owner which expression does not extend to demurrage and other port charges. The High Court, therefore, does not appear to be correct in its conclusions. However, the said error would not be fundamental to the final conclusion reached by the High Court. In this regard we cannot help noticing the special provisions of Sections 61 and 62 of the Act which enable the Port Trust authority to proceed against the goods within its custody to recover the charges which may be payable to the Port Trust authority. Ordinarily and in the normal course if resort is made to the enabling provisions in the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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