Judgement

CHANDRACHUD, J:- The Trustees of the Port of Madras, appellants herein, filed Suit No, 158 of 1966 in the High Court of Madras for recovering a sum of Rs. 3,18,968.04 from the respondents by way of demurrage. The 1st respondent is a firm called M/s. Aminchand Pyarelal, the 2nd respondent is the Union of India and the 3rd respondent is the Collector of Customs, Madras. A learned single Judge referred the suit to a Division Bench which dismissed it by a judgment dated December 23, 1971. This is an appeal by certificate granted by the High Court under Article 133 (1) (a) of the Constitution.

2. On April 10, 1963, a Steamer "A. P. J. AKASH" arrived at the Madras Port and landed among other goods a consignment of 202 bundles of black plain sheets of various sizes. The appellants received the goods and stored them in transit sheds. The goods were imported by the 1st respondent under an authorisation issued by the State Trading Corporation of India which held a licence dated June 16, 1962, to import the goods from Hungary. The Clearing Agents of the 1st respondent filed a Bill of Entry with the 3rd respondent but the Customs authorities detained the goods as the specifications in