KUCHWAR LIME AND STONE CO. vs M/S. DEHRI ROHTAS LIGHT RAILWAY CO. LTD. & ANR.

The Supreme Court held that the appellant Company, as the consignee, was liable for demurrage charges despite refusing to accept delivery of the consignment, as the Colliery acted as its agent in the contract of consignment. The Court clarified that liability for demurrage exists even if delivery is not taken, provided the wagon is detained for the consignee's benefit. However, the Court found that the Railway was entitled to demurrage only for one month, as it failed to minimize loss by not unloading the wagons and could not claim demurrage for the full period of 202 days under Section 56 of the Railways Act.