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TMI Blog2007 (12) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... consignment of "One Steal Flat" under mark "GOEL STEEL CO MADRAS" was landed against line No. 101 of the manifest. The second respondent herein/second defendant was the consignee of the imported goods and carrying on business at Chennai. 3. It is seen that the appellant herein/plaintiff had given notice to both the respondents for clearance of the consignment. It is also not in dispute that even after receipt of the notice, the second respondent/second defendant, the consignee did not take steps to clear the goods from the Madras Port Trust. Hence, an application was made to the customs for the sale of the goods under Sections 61 and 62 of the Major Port Trusts Act. The first respondent/first defendant, the Steamer agent has sent his repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the second respondent and the suit against the first respondent was dismissed by the Court, below. Aggrieved by which, this appeal has been preferred by the Appellant-Port trust, plaintiff in the suit. 7. Against the judgment and decree passed by Court, below, the second respondent/second defendant has not preferred any appeal or cross appeal. 8. Mr. K. Bijai Sundar, the learned counsel appearing for the first respondent submited that being the consignee of the imported goods, the second respondent alone is liable to pay the demurrage charges to the appellant-Port Trust. The first respondent being the steamer agent of the ship need not pay any demurrage charges to the appellant-Port Trust. In support of his contention, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment being made on he bill of lading, would be that of the consignee. This is in consonance with the provisions of the Bills of Lading Act, 1856. The preamble of this Act provides that by the custom of merchants a bill of lading of goods being transferable by endorsement, the property in the goods may thereby pass to the endorsee, but nevertheless all rights in respect of the contract contained in the bill of lading continue in the original shipper or owner and, therefore, it is expedient that such rights should pass with a property, Section 1 of the Bills of Lading Act provides that rights under bills of lading vest in the consignee or endorsee and reads under:- "1. Rights under bills of lading to vest in consignee or endorsee. - Every co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows:- "25. Section 2(o) contains the definition of "owner". In relation to goods the said section states that the word "owner" includes any consignor, consignee, shipper or agent for the sale, custody, loading or unloading of such goods. By referring to this sub-section this Court in Sun Export Corporation v. Board of Trustees of the Port of Bombay (1998) 1 see 142: (AIR 1997 SC 4044: AIR 1998 SC 92) held that in the case of imports the liability to pay demurrage, on the endorsement being made on he bill of lading, would be that of the consignee. This is in consonance with the provisions of the Bills of Lading Act, 1856. The preamble of this Act provides that by custom of merchants a bill of lading of goods being transferable by endorsemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Port Trust and the holder of the bill of lading which, in this case, would be the consignee. It is the consignee which is the bailor with the Port Trust being the consignee." 13. As per Section 151 of the Indian Contract Act, 1872, in all cases of bailment, the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take of his own goods of the same bulk, quality and values as the goods bailed. 14. Therefore, the contract is between the Port Trust, the appellant herein and the consignee, holder of the bill of lading, who is the second respondent in this appeal. The consignee is the bailor and the Port Trust is the bailee. The second respondent being the consignee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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