Case Note & Summary
The petitioner, Forbes Forbes Campbell & Co. Ltd., was the steamer agent for American President Lines Ltd., a foreign shipping company. Seven cartons of ball bearings consigned to M/s. Metal Fabs India Pvt. Ltd. landed at Bombay Port on 5.2.1972. The last free date for clearance was 10.2.1972. The goods remained uncleared for over two months. The plaintiff, Board of Trustees of the Port of Bombay, a statutory body under the Major Port Trust Act, 1963, was initially unaware of the consignee's name and address. By letter dated 10.10.1974, the plaintiff addressed the defendant No.2 (the steamer agent) demanding payment of demurrage and other charges. The plaintiff filed a suit in the Court of Small Causes, Bombay, which was decreed in its favor on 7.11.1989, directing defendant No.2 to pay Rs.4752/- with interest at 10% per annum from the date of suit till realization. The defendant No.2 challenged this decree by way of a writ petition. The High Court considered the liability of a steamer agent for port dues. The court noted that the agent had acted on behalf of a foreign principal and that the goods had been cleared by the consignee only after the plaintiff's intervention. The court held that the agent, having dealt with the port trust and having received the goods on behalf of the principal, was liable to pay the demurrage charges. The court also examined the limitation issue and found the suit to be within time. The writ petition was dismissed, upholding the decree of the trial court.
Headnote
A) Port and Harbour Law - Demurrage Charges - Liability of Steamer Agent - Major Port Trust Act, 1963 - The plaintiff, a statutory port trust, claimed demurrage and other charges for goods that remained uncleared for over two months. The steamer agent, acting for a foreign shipowner, was held liable to pay the dues. The court held that the agent, having acted on behalf of the principal, is personally liable for port charges in the absence of the principal's presence in India. (Paras 1-10) B) Principal and Agent - Liability of Agent for Principal's Debts - Contract Act, 1872, Section 230 - The court examined whether the agent could be made liable for the principal's debts. It held that under Section 230 of the Contract Act, an agent is not ordinarily liable for the principal's debts, but where the principal is foreign and not amenable to Indian jurisdiction, the agent may be held liable. (Paras 5-8) C) Limitation Act - Applicability to Port Trust Claims - Limitation Act, 1963, Article 113 - The court considered the limitation period for the suit. It held that the suit was within time as the cause of action arose when the goods were cleared or when the demand was made. (Paras 3-4)
Issue of Consideration
Whether the steamer agent (defendant No.2) is liable to pay demurrage and other charges to the Port Trust (plaintiff) for goods that remained uncleared, even though the agent acted on behalf of a foreign principal.
Final Decision
The writ petition is dismissed. The judgment and decree dated 7.11.1989 passed by the Court of Small Causes, Bombay, is upheld. No order as to costs.
Law Points
- Liability of steamer agent for port dues
- demurrage charges
- principal-agent relationship
- statutory liability under Major Port Trust Act
- 1963
