2007 (9) TMI 610 - HC - Indian Laws

Summary

Issues Involved:
1. Mandamus for port authorities to provide services and release containers.
2. Declaration that port authorities cannot charge demurrage until containers are released.
3. Mandamus to sell cargo and reimburse expenses.
4. Mandamus to stop charging demurrage on FCL containers.
5. Mandamus to act according to the Major Port Trusts Act regarding demurrage.
6. Declaration for refund or adjustment of excess amounts recovered by port authorities.
7. Mandamus to discharge lien on goods before appropriation.

Detailed Analysis:

1. Mandamus for Port Authorities to Provide Services and Release Containers:
The appellants, ship owners, and charterers, carried 70 containers of urea from Dubai to Calcutta Port for delivery to a Nepalese company. Despite repeated notices and reminders, the consignee did not clear the goods. The appellants requested the port authorities to destuff the containers and release them, but the port authorities did not take any action, leading to the accumulation of demurrage charges. The court directed the port authorities to either sell the goods or destuff the containers within a specified time frame, ensuring the release of the containers.

2. Declaration That Port Authorities Cannot Charge Demurrage Until Containers Are Released:
The appellants argued that they should not be liable for demurrage charges beyond a certain date as they were not responsible for the delay in clearing the goods. The court initially held that the appellants were not liable for demurrage charges beyond 28th February 1997. However, the final judgment directed the appellants to pay demurrage charges until 23rd July 1997, the date when they filed the writ petition.

3. Mandamus to Sell Cargo and Reimburse Expenses:
The appellants sought a writ to command the respondents to sell the cargo and reimburse the transportation and destuffing expenses. The court directed the port authorities to sell the goods through public auction and keep the sale proceeds in a short-term deposit. The court also ordered the port authorities to reimburse the appellants for the expenses incurred for the sale.

4. Mandamus to Stop Charging Demurrage on FCL Containers:
The court addressed the issue of demurrage charges on Full Container Load (FCL) containers. The port authorities argued that they were entitled to charge demurrage as per the scale of rates fixed under the Major Port Trusts Act. The court held that the appellants were liable to pay demurrage charges until the date they filed the writ petition, after which the port authorities should have taken steps to sell the goods.

5. Mandamus to Act According to the Major Port Trusts Act Regarding Demurrage:
The court examined the provisions of the Major Port Trusts Act, particularly Sections 61 and 62, which empower the port authorities to sell goods if not cleared within a specified time. The court held that the port authorities should have taken action under these sections to sell the goods and clear the containers, thereby stopping the accumulation of demurrage charges.

6. Declaration for Refund or Adjustment of Excess Amounts Recovered by Port Authorities:
The appellants sought a declaration that the excess amounts recovered by the port authorities should be refunded or adjusted in their marine account. The court directed the port authorities to calculate the demurrage charges till the date of the writ petition and deduct the same from the sale proceeds. Any surplus amount after deduction should be kept deposited without any lien or charge.

7. Mandamus to Discharge Lien on Goods Before Appropriation:
The appellants requested a writ to command the respondents to discharge their lien on the goods before appropriating the same on any other account. The court held that the port authorities had a statutory lien for realizing rents chargeable over any goods brought to the port premises and directed them to first reimburse the appellants for the sale expenses before realizing the demurrage charges from the sale proceeds.

Conclusion:
The court allowed the appeal, setting aside the impugned judgment and directing the port authorities to calculate the demurrage charges till 23rd July 1997, reimburse the appellants for the sale expenses, and deduct the demurrage charges from the sale proceeds. Any surplus amount should be kept deposited without lien or charge. The court also clarified that the Indo-Nepal Treaty did not prevent the port authorities from taking action to sell the goods under the Major Port Trusts Act.