JUDGMENT

Civil Appeal No. 605/75

The question before the High Court was whether the demurrage charges, harbour dues etc. payable to the Port Trust of Madras were to be recovered from the consignee of goods or from the "steamer-agent". The High Court on the facts of the case came to the conclusion that the consignee was liable to pay the charges. We reproduce hereunder with approval the reasoning of the High Court in this respect:

"In the face of the above provisions, the question is as to who is liable for the demurrage charges in relation to the goods which were in the custody of the Port Trust till they were ultimately confiscated by the customs authorities. It cannot be disputed that neither the ship owner or the steamer agent whose duty is it to deliver the cargo to the consignee as per the contract with the shipper, cannot lay any claim of ownership to the goods. The obligation to deliver the goods to the consignee has been taken over by the Port Trust under the provisions of the statute and the ship owner is relieved of the liability for loss or damage to the goods from the moment the goods are taken charge of by the Port Trust as per section 39 of the Act. Once the goods are h