TRUSTEES OF THE PORT OF MADRAS vs M/S. AMINCHAND PYARELAL & ORS.

The Supreme Court examined the validity of the demurrage charges imposed by the Madras Port Trust under Sections 42, 43, and 43A of the Madras Port Trust Act, 1905, and Rule 13 of the Port Trust Rules. The Court held that the scale of charges for demurrage was unreasonable and void, particularly when the delay was due to Customs authorities' actions, thus establishing that an importer cannot be penalized for such delays. The High Court's dismissal of the appellants' suit was upheld, affirming that the bye-law allowing demurrage charges under these circumstances was ultra vires.