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Supreme Court of India 2020-08-05 disposed

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

Bench: 3 — R. F. Nariman, Navin Sinha, Indira Banerjee

In Brief

The Supreme Court settled a long-standing dispute regarding who is liable for demurrage and storage charges at major ports. When goods arrive by sea and are taken into custody by a Port Trust, liability for storage charges shifts from the shipping agent to the cargo owner, importer, or consignee—regardless of when ownership passes. The Court clarified that a steamer agent remains liable only for charges related to unloading services at the vessel. After the Port Trust takes charge and issues a receipt, storage and demurrage liability passes entirely to the owner of the goods or persons entitled to them. Title transfer is irrelevant. For containers, unless the container itself is imported with the goods, charges are on the goods' owner alone. The Court held Port Trusts must reasonably sell uncollected goods within four months of landing.

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Admiralty and Shipping Law Port Authority Law Bailment Cargo Demurrage and Storage Statutory Interpretation Bill of Lading Customs Law

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