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1998 Supreme(Online)(Cal) 1

CALCUTTA HIGH COURT
A K Sinha, J
Chairman Calcutta Port Trust and Others v. Star Iron Works Private Ltd. and Others
Civil Appeal | 1234 of 1991



Advocates:
For the Appellants/Petitioners: [Name1, Name2]
For the Respondents: [Name3, Name4]

The Board has discretion under S.62 to decide notice requirements for the removal of goods and liability for demurrage, which was misinterpreted by the lower court.

Headnote:The interpretation of S.62 of the Major Port Trusts Act, 1963 determined the liability of the respondent concerning demurrage charges. The trial court confined liability to 30 days based on a misreading of statutory obligations of the Board. The court held that while removal of goods is crucial, the Board has discretion in enforcing regulations. The appeal was allowed, and the lower court's decision was set aside to require the Board to reconsider the petitioner's representation under S.53 of the Act.

Table of Content
1. controversy over goods not removed. (Para 1)
2. interpretation of statutory obligations regarding notices. (Para 2 , 3)
3. correct interpretation of demurrage liability. (Para 4 , 5)
4. representation for waiver of demurrage charges. (Para 6)
5. directing reconsideration of the representation by the board. (Para 7)

1.The point of controversy involved in this appeal lies in a very short and narrow compass. A consignment of goods belonging to the respondent / writ petitioner was received, after import in the area of the Calcutta Port Trust on 2nd May, 1990. Till 19th Nov. 1990 these goods were not removed from the custody of the Calcutta Port Trust. The case of the respondent / writ petitioners is that it had no knowledge about the arrival of the goods on 2nd May, 1990 and that it was only on 29th Oct. 1990, for the very first time, that it became aware about the arrival of these goods through a notice issued by the Customs Authorities. The writ petitioner / respondent made a representation under S.53 of the Major Port Trusts Act, 1963 for exemption and waiver of the demurrage charges which in the meanwhile had amounted to more than Rs. 11 lacs. Since no relief was given to the petitioner, he filed a writ application in this Court under Art. 226 of the Constitution. The learned single Judge vide the Judgment under Appeal passed on 30th Sept. 1991 allowed the writ application of the respondent / writ petitioner and directed that he was liable to pay only demurrage charges for 30 days from the date of arrival of the goods in the Port of Calcutta.

2. The only ground on which the learned single Judge has held that the liability of the respondent was confined to 30 days on demurrage charges is the interpretation put by him upon S.62 of the Major Port Trusts Act, 1963 . S.62 reads thus : -
"62. Disposal of goods not removed from premises of Board within time limit -
(1). Notwithstanding anything contained in this Act, where any goods placed in the custody of the Board upon the landing thereof are not removed by the owner or other person entitled thereto from the premises of the Board within one month from the date on which such goods were placed in their custody, the Board may, if the address of such owner or person is known, cause a notice to be served upon him by letter delivered at such address or sent by post, or if the notice cannot be so served upon him or his address is not known, cause a notice to be published in the Port Gazette or where there is no Port Gazette, in the Official Gazette and also in at least one of the Principal local daily newspapers, requiring him to remove the goods forthwith and stating that in default of compliance therewith the goods are liable to be sold by public auction or by tender, private agreement or in any other manner;
Provided that where all the rates and charges payable under this Act in respect of any such goods have been paid, no notice of removal shall be so served or published under this sub-section unless two months have expired from the date on which the goods were placed in the custody of the Board.
(2) The notice referred to in sub-section (1) may also be served on the agents of the vessel by which such goods were landed.
(3) If such owner or person does not comply with the requisition in the notice served upon him or published under sub-section (1), the Board may, at any time after the expiration of two months from the date on which such goods were placed in its custody, sell the goods by public auction after giving notice of the sale in the manner specified in sub-sections (2) and (3) of S.61.
(4) Notwithstanding anything contained in sub-section (1) or sub-section (3) -
(a) The Board may, in the case of animals and perishable or hazardous goods, give notice of removal of such goods although the period of one month or, as the case may be, of two months specified in sub-section (1) has not expired or give such shorter notice of sale and in such manner as, in the opinion of









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