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2005 DIGILAW 1096 (BOM)

Board of Trustees of the Port of Bombay v. Taparia Tools Ltd.

2005-08-25

S.A.BOBDE

body2005
( 1 ) THIS petition, by the Board of Trustees of the Port of Bombay, questions the order of the appellate Bench, hereinafter referred to as the "appellate Court", of the Court of Small Causes at Mumbai in appeal. The appellate Court has dismissed the petitioners suit and held that they have no right to recover demurrage charges for a period of 12 months. ( 2 ) THE petitioner sued the respondent, Taparia Tools Ltd. , for a sum of rs. 6,459. 83 together with interest on rs. 6,340. 94 at 15% per annum from the date of filing of the suit till payment or realisation. ( 3 ) THE facts leading to the suit are that the respondent is a consignee who imported a consignment of six cases of Carbon Steel bars which was landed in the Port of Bombay from the vessel S. S. Jala Mangala under I. G. M. No. 1009, item no. 465 dated 21-10-1975. The date of landing was 27-10-1975. The Last Free day was 31-10-1975 i. e. the day upto which the petitioner would allow the clearance of the goods without charging any demurrage. ( 4 ) HOWEVER, the goods were not cleared by the consignee for over two months from the date of landing. The petitioner, therefore, issued a notice of sale dated 29-07-1976 informing the respondent that if the goods were not cleared on payment of charges accrued within ten days, they would be sold by public auction under section 61 of the Major port Trusts Act, 1963, hereinafter referred to as the "act". The respondent appears to have paid a sum of Rs. 2,000/- and sought withdrawal of the petitioners proposal to auction. The petitioner informed the respondent that their request for withdrawal of the goods from sale would be examined after receipt of Rs. 16,000/- as the Port Trust charges accrued. Since the respondent did not clear the goods, the petitioner sold six cases of Carbon Steel Bars by public auction on 23. 1. 1979. They got a price of rs. 14,782/- only. This amount was short of the amount due to the petitioner from the respondent. According to the petitioner, the aggregate amount recoverable, inclusive of Port trust charges is Rs. 23,122. 94. This is inclusive of:-