Unloading and loading of goods at approved places only

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

1. Chairman, Cochin Port Trust vs Maersk India Pvt. LTD

   Supreme Court of India 05 Aug 2020 Binding (Supreme Court) Reportable (2020) 8 SCC 1

   Court's Decision & Legal Precedent

   The statutory scheme of the Major Port Trusts Act 1963 establishes a two-stage liability framework: (1) STAGE ONE (PRE-LANDING TO RECEIPT): Until the Port Trust takes charge of goods and issues a receipt therefor, services rendered are for the vessel and steamer agents may be liable for landing and ancillary charges under the statutory bailment that comes into existence between vessel (bailor) and Port (bailee). (2) STAGE TWO (POST-RECEIPT/POST-LANDING): Once the Port Trust takes charge and receipt is issued, the vessel and steamer agents are absolved of all liability for the goods per section 42(7) of the Act. From this point forward, demurrage and storage charges are the liability of the importer, owner, consignee or their agents (i.e., persons beneficially entitled to the goods), not the steamer agent or vessel. (3) TITLE IRRELEVANCE: The point of time at which title to goods passes to the consignee is immaterial to determining liability for post-landing storage charges. Liability follows statutory entitlement and beneficial ownership per the MPT Act scheme, not technical title transfer. (4) CONTAINERS: A container which is a receptacle for transport and must be returned is not goods for purposes of storage charge liability. The Port Trust must destuff containers entrusted to it and return empty containers within a feasible period. (5) PORT DISCRETION: The Port Trust's power under sections 61-62 to sell goods is discretionary (may, not shall) but must be exercised reasonably with outer limit ordinarily of four months from landing date per Article 14 constraints, after which Port must justify continued detention.

   On this section: Imported goods unloading only at approved places; regulates destuffing location

   Read the full order on eCourts India

2. Chairman Cochin Port Trust vs Cma Cgm Agencies India Pvt. LTD

   Supreme Court of India 05 Aug 2020 Binding (Supreme Court of India) - Landmark Decision Reportable (2018) 4 SCC 592 [Reference Order dated 07-03-2018]; (2020) 10 SCC 1 [Main Judgment dated 05-08-2020]

   Court's Decision & Legal Precedent

   After a Port Trust takes charge of imported goods from a vessel and issues a receipt therefor, the Port Trust becomes the bailee of those goods. Demurrage and storage charges accruing thereafter for goods stored in the Port's premises are payable by the importer, owner, consignee or other person beneficially entitled to the goods, and NOT by the steamer agent or ship-owner. However, charges for services rendered at the time of landing of goods or their removal from the vessel to the Port's storage premises (such as unloading charges and labour dues) may be charged against the steamer agent as services rendered to the vessel. The time at which title in goods passes to the consignee is irrelevant in determining such liability. The Port Trust must act reasonably in exercising its discretion to sell goods under Sections 61-62 of the MPT Act and must attempt to sell goods within reasonable time from when it assumes custody, with four months from landing being the outer limit, failing which it must provide written explanation justifiable by the courts. Containers are receptacles for goods, not imported goods themselves, and must be destuffed and returned to the steamer agent or container owner within a short feasible period.

   On this section: Imported goods can be unloaded only at approved customs areas; creates nexus between port location and customs control; steamer agent bound by these requirements

   Read the full order on eCourts India

3. Chairman, Cochin Port Trust vs Hanjin Shipping India Pvt. LTD

   Supreme Court of India 05 Aug 2020 Binding - Supreme Court Three-Judge Bench Reportable (2018) 4 SCC 592 (for the Division Bench Reference Order)

   Court's Decision & Legal Precedent

   Upon the Major Port Trusts Act, 1963: (1) The point of time at which title to goods passes to the consignee is not relevant to determine the liability of the consignee or steamer agent in respect of charges to be paid to the Port Trust. (2) Once the Port Trust takes charge of goods and issues receipt therefor, the steamer agent may be held liable for Port Trust dues in connection with services rendered qua unloading of goods, but thereafter, the importer, owner, consignee or their agent is liable to pay demurrage charges for storage of goods. (3) The Port Trust, as 'State' under Article 12 of the Constitution, is bound by Article 14 constraints and must ordinarily sell goods within four months from the date of landing, unless reasonably justified otherwise. (4) Containers are receptacles for imported goods, not imported goods themselves; containers must be returned to steamer agents, and carrying goods in containers makes no difference to the principle that only the owner of goods or person entitled to goods is liable to pay demurrage. (5) The Port Trust is under a duty to destuff every container entrusted to it and return destuffed containers to appropriate persons within as short a period as is feasible where the owner/person entitled to goods does not come forward to take delivery. (6) The statutory scheme of the MPT Act allocates liability for storage charges post-custody exclusively to the owner/beneficial owner of goods, whether consignor, consignee, importer, or their agents, and never to the steamer agent post-custody.

   On this section: No imported goods shall be unloaded except at approved places; further port authority control

   Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.