VidhiSangh

Supreme Court of India · 05/08/2020

THE CHAIRMAN, BOARD OF TRUSTEES, COCHIN PORT TRUST versus M/S AREBEE STAR MARITIME AGENCIES PVT. LTD. & ORS.

[2020] 11 S.C.R. 706 · 2018 INSC 216

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Summary

The reference distinguished unloading dues, for which a steamer agent may be liable, from storage demurrage after the Port Trust takes custody and issues a receipt, payable by the importer, owner, consignee or their agent. Passing title or issuing a delivery order does not control that allocation. Returnable containers must be destuffed and returned promptly. Sale powers remain discretionary but subject to reasonable exercise. The Court preserved the case-specific ground-rent outcome while correcting the High Court’s mandatory reading of the sale provisions.

Issues

  1. Who bears port dues before and after the Port Trust takes custody of goods.
  2. Whether title transfer, delivery orders or use of containers alter storage liability.
  3. What duties govern destuffing and sale of uncleared goods.

Provisions considered

Held

Result

Reference answered and appeals disposed of. High Court judgment set aside only on its reading of may as shall in Sections 61 and 62, subject to the Port Trust’s duty of reasonable action; case-specific payment outcome otherwise left undisturbed.

Judgment PDF: Supreme Court of India, [2020] 11 S.C.R. 706.