- (1.)Leave granted in SLP(C) No. 4221 of 2012.
(2.)The common question of law that arises in these appeals, though in different facts and circumstances, is with regard to the liability of the agent of a ship owner (hereinafter referred to as the "Steamer Agent") to pay demurrage and port charges to the Board of Trustees of a Port (hereinafter referred to as "the Port Trust Authority") in respect of goods brought into the port and warehoused by the said authority. Before proceeding to answer the aforesaid question it will be convenient to take note of the core facts in each of the appeals under consideration.
Civil Appeal No. 2134/2006 and Civil Appeal arising out of SLP(C) No. 4221/2012

(3.)The consignee of the goods not having either cleared the same or having responded to any of the notices issued, the goods were sold by public auction by the Port Trust authority after almost four years of receipt thereof. The amount fetched in the auction fell short of the total charges payable which led the said authority to file a suit against the Steamer Agent for the balance amount. The suit was dismissed. In appeal, the High Court reversed the decree holding the Steamer Agent to be liable.
In doing so, the High Court held that the ratio of the law laid down by this Court in Trustees of the Port of Madras Through Its Chairman Vs. K.P.V. Sheikh Mohd. Rowther & Co. Pvt. Ltd. and Another, 1997 10 SCC 285 (hereinafter for convenience referred to as 'the 1997 judgment') to be not applicable to the present case inasmuch as in the 1997 case the Steamer Agent had endorsed the bill of lading in favour of the consignee thereby transferring the property in the goods to the consignee whereas in the present case the consignee had not attempted to clear the bill of lading and had also not responded to the notices issued.