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2026 Supreme(Online)(Guj) 8435

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Devan M. Desai, J
Board of Trustees of the Port of Kandla – Appellant
Versus
Pestonjee Bhicajee – Respondent
R/FIRST APPEAL NO. 60 of 2000



Advocates:
For the Appellants/Petitioners: M.K. Vakharia
For the Respondents: C.J. Vin, Rohan Lavkumar

An agent acting on behalf of a disclosed principal bears no personal liability for contractual obligations. Furthermore, the mere marking of a document as an exhibit does not constitute proof of its contents; the burden remains on the claimant to demonstrate the veracity of its entries.

Headnote:(A) Code of Civil Procedure, 1908 - Section 96 - Appeal against decree - Scope and ambit - An appellate court should not substitute its view for that of the trial court unless the decision is marred by perversity or illegality. (Para 29)

(B) Indian Contract Act, 1872 - Sections 230, 231, and 236 - Law of Agency - Personal liability of agent - An agent is not personally liable for contracts entered into on behalf of a disclosed principal, provided they act within their authority; agency creates no personal obligation absent an express agreement. (Paras 13, 14, 21, 26)

(C) Proof of Documents - Evidence Act - Burden of proof - Mere exhibition of a document in court does not dispense with the requirement to prove its contents; if the veracity of the entries is disputed, the party relying on the document must lead oral or corroborative evidence to establish its contents. (Para 27)

(D) Major Port Trusts Act, 1963 - Sections 42 and 43 - Recovery of dues - Statutory liability for services rendered requires proof of request and performance of services; where the claim is composite and lacks evidence of specific liability, it cannot be decreed. (Para 28)

Facts of the case:
The appellant-plaintiff, a port administration body, filed a suit to recover outstanding port charges from the vessel’s agents and charterer. The plaintiff alleged that service charges were incurred, and the agents were liable for the unpaid balance. The defendants denied liability, asserting they acted as agents for disclosed foreign principals and that no privity of contract existed. The trial court dismissed the suit, noting the absence of proof regarding the charges and the expiration of the limitation period for the claim against the charterer. The appellate court reviewed these findings.

Findings of Court:
The court determined that the appellant failed to prove the contents of the invoices relied upon, as witnesses lacked personal knowledge of their preparation. It further held that the agents of a disclosed principal could not be saddled with personal liability, and the suit against the charterer was time-barred.

Issues: The main issues were whether an agent is personally liable for port dues when the principal is disclosed, whether the mere production of documents constitutes sufficient proof of their contents, and whether the suit was barred by limitation.

Ratio Decidendi: An agent for a disclosed principal is not personally liable for obligations incurred on that principal’s behalf. Furthermore, the evidentiary burden to prove the truth of document contents remains with the party producing them, even if they have been marked as exhibits. Appellate courts must respect the trial court’s factual assessment absent clear perversity.

Result: Appeal dismissed.

Table of Content
1. procedural history and factual foundation of the suit. (Para 1 , 2 , 3)
2. appellant's claim of agency liability regarding port dues. (Para 4 , 5 , 6)
3. defendants' argument on lack of privity, disclosed principal, and statute of limitations. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
4. evidentiary requirements and application of the major port trusts act. (Para 17 , 18 , 19 , 20 , 27 , 28)
5. non-liability of an agent for contracts executed on behalf of a disclosed principal. (Para 21 , 22 , 23 , 24 , 25 , 26)
6. affirmation of trial court's dismissal of the suit. (Para 29)

JUDGMENT

1. The present Appeal is filed under Section 96 of the Code of Civil Procedure, 1908 by the appellant – original plaintiff challenging the judgment and decree dated 30.11.1999 passed in Special Civil Suit No. 17 of 1983 by learned 2nd Joint Civil Judge (SD), Jamnagar.

2. Heard learned advocate Mr. M.K. Vakharia for the plaintiff, learned advocate Mr. C.J. Vin for defendant No. 1 and learned advocate Mr. Rohan Lavkumar for Nanavati Associates for defendant No. 2.

For the sake of convenience, the parties are referred to as per their original status in the suit.

3. The brief facts of the case are as follows:

3.1 It is the case of the plaintiff that plaintiff is a body corporate, constituted under the Major Port Trusts Act, 1963, having an installation at Vadinar Port which is known as off shore Oil Terminal, where facilities are provided for discharging the cargo of crude oil brought in tankers. It is further the case of plaintiff that M/s. Indian Oil Corporation – defendant No. 4, had chartered the vessel named M.T. IRINIO to bring Oil from foreign country and the same was to be unloaded at the off-shore Oil Terminal at Vadinar. The plaintiff was informed by defendant No. 1 that the vessel is expected to arrive on 11th February, 1982 at 15:45 hours and was to anchore at the anchorage at Vadinar Port at or about 04:36 hours on 12th February, 1982. Defendant No. 1 paid an advance deposit of Rs. 2,00,000/- on 14.02.1982 towards charges and dues of plaintiff for various services. Defendant No. 3 is the Master, who submitted the Arrival Report. As per the Arrival Report, all charges shall be paid by defendant No. 1. Plaintiff claimed Rs.12,12,921/- towards various charges and dues from defendants. Defendant No. 1 acknowledged its liability and promised to deposit the amount. The quantity of bunker was to be supplied to the vessel by defendant No. 1. Defendant No. 3 sailed away the vessel on the night of 16/17th March 1982 without obtaining port clearance certificate and without paying the dues of the plaintiff. An invoice was raised in respect of various services rendered by plaintiff to the said vessel. As per the case of plaintiff, defendant No. 1 is liable to pay an amount of Rs.14,12,921.10 paisa. The net amount after deducting an amount of Rs.2,00,000/- out of the total sum of Rs.14,12,921.10 paisa, comes to Rs.12,12,921.10 paisa. The plaintiff, therefore, was constrained to file a suit for recovery of an amount of Rs.14,13,066.10 paisa including interest at the rate of 18% per annum from 16.02.1982 from all defendants jointly / severally. The summons of the suit was duly served to defendants. Defendant No. 1 filed written statement at Exhibit – 13. Defendant No. 2 filed written statement at Exhibit – 33. Defendant No. 3 remained absent and the suit was proceeded ex-parte against defendant No. 3. Defendant No. 4 – Indian Oil Corporation was not joined at the initial stage of the suit but was joined as defendant No. 4, during the pendency of the suit. Defendant No. 4 filed written statement at Exhibit – 43. The defendants denied their liability. Defendant No. 4 raised the contention of limitation. On the basis of pleadings, the learned Court below framed following issues at Exhibit – 62:

(1) Whether the Plaintiff’s suit is not maintainable as it is filed without authority.

(2) Whether the plaintiff’s suit is bad for misjoinder

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