Messrs SAHAF CORPORATION (PVT.) LTD. vs KARACHI PORT TRUST and 2
This petition for leave to appeal arises from a judgment of the High Court of Sindh dismissing the petitioner's constitutional petition regarding the delivery of imported machinery containers without the payment of demurrage charges. The core legal question concerns whether the importer or the shipping agent/operator is liable for Karachi Port Trust storage and demurrage charges when containers are detained at the terminal by the shipping agent. The Supreme Court granted leave to appeal, observing that the High Court itself found the shipping agents liable for the charges under the applicable port rules, and that the petitioner's prior letter should not arbitrarily burden them with such liability when attempting to secure the release of their goods. The Court held that under Rule 35(a) of the Manual of Procedure for the Handling, Berthing and Operation of Containers Vessels and Containers at Karachi Port, charges for containers withheld by shipping agents beyond the dwell time are to be levied against the shipping agents or operators, laying down the principle that importers cannot be arbitrarily burdened with demurrage resulting from the detention of goods by shipping agents.
- Whether an importer is liable for demurrage charges when containers are detained by shipping agents?
- Who is responsible for Karachi Port Trust storage charges under Rule 35(a) of the Manual of Procedure for the Handling, Berthing and Operation of Containers Vessels and Containers at Karachi Port when cargo is withheld by shipping agents?
- Does a letter withdrawing a claim against a respondent shift the statutory liability for port storage charges onto the petitioner importer?
ORDER
' ABDUL QADEER CHAUDHRY, J.---Leave to appeal has been sought against the judgment of the High Court of Sindh, Karachi, dated 20-11-1993.
2. The facts in brief are that the petitioners placed an Order with Messrs Texel Manchester (U.K) for supply of second-hand reconditioned textile machinery under Cash Licence Scheme of the Government of Pakistan. The petitioner opened an irrevocable Letter of Credit dated 21-6-1986. The petitioners were informed by their local agents M/s. Consolidated Shipping Ltd. Vide letter dated 21- 9-1986 that the consignment of 24 containers was due to arrive on m.v. "Norasia Susan" and 10 containers under B/L No,1038-A, dated 2-9-1986 were due to arrive on m.v. "Norasia Susan". The vessel in question arrived on 4-10-1986 and 24 containers brought by her were transported to Lahore Dry Port and delivered to the petitioners. According to the petitioners, in the first week of October 1986, it was disclosed that 10 containers had already arrived on 27-7-1986, and respondent No,3 had failed to inform the petitioners about their such early arrival. The petitioners located the said containers on 14-10-1986, which were lying in the KPT premises. The petitioners filed a Constitutional petition for delivery of the goods without any payment of demurrage charges in respect of these 10 containers. The goods were delivered to the petitioners on the High Court's order. Finally the petition was dismissed by the impugned judgment. The High Court recorded the following findings:-- "It is evident from record that the containers in question were detained by the Shipping Agent M/s. Marine Services Ltd. At their terminal and the same were in their custody. It being so, as per rule 35
(a) of Manual of Procedure for the Handling, Berthing and Operation of Containers Vessels and Containers at Karachi Port, the KPT Storage Charges on Cargo in containers are to be levied against the Shipping Agents/Operators as per KPT Scale of Charges."
' After making the above findings, the High Court made the following observations:- "At initial stage, the question was whether those dues were to be paid by the petitioners or respondent No,3. The petitioners, by their letter dated 14th October, 1986, withdrew their right to claim KPT damurrage etc. From respondent No,3. Therefore, it is not the liability of the petitioners to pay those charges."
3. The learned counsel for the petitioners has submitted that the Court has itself held respondent No,3 liable for charged. Under the Rules, the petitioners cannot be burdened with the damurrage on the basis of letter dated 14th October, 1986, addressed by the petitioners. Before the filing of the Constitutional petition, the anxiety of the petitioners was to get the delivery of the goods in order to save further damages. According to Rule 35(a) of the Manual of Procedures for the Handling, Berthing and Operation of Container Vessels and Container at Karachi Port, in case when cargo is withheld by Shipping Agents/Operators in containers after the 10 working days dwell time, then KPT storage charges on cargo in confiners will be levied against the Shipping Agents/Operators as per KPT Scale of Charges." The High Court relying on this Rule itself held that the containers were detained by respondent No,3, therefore, they were liable for payment of KPT charges.
' Leave is granted. Stay to continue.