In Brief
Food Corporation of India sought to recover demurrages (railway surcharges for delayed unloading) from road transport contractors under a contract clause permitting recovery of "charges". The contractors disputed this claim, arguing their contract did not include loading/unloading responsibilities. The Supreme Court upheld the High Court's rejection of the claim, holding that contractual terms must be interpreted contextually based on the parties' true intention. Since the road transport contract did not require contractors to load or unload cargo, the term "charges" did not encompass demurrages—unlike similar contracts that explicitly included such obligations. The appeals were dismissed.
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