In Brief
A buyer of imported goods that were shipped on a cash-against-documents basis and left unclaimed at Bombay Port sought remission of demurrage charges. The Port Trust had levied Rs. 2.8 crores in demurrage but granted only partial remission. The Supreme Court held that regardless of when title passed to the buyer, the Port Trust can recover demurrage from any person claiming delivery as a sub-bailee. However, the Court emphasized that the Port Trust's discretion to grant or refuse remission must be exercised rationally and based on a clear policy, not arbitrarily. The judgment was set aside, allowing the Port Trust to reconsider the remission application while recording reasoned grounds.
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