BOARD OF TRUSTEE OF THE PORT OF BOMBAY vs INDIAN GOODS SUPPLYING CO.

The Supreme Court held that the Bombay Port Trust is entitled to claim demurrage under Section 43A of the Bombay Port Trust Act, 1879, even when delays are due to Import Trade Control formalities. The Court clarified that the D.O. letter from the Central Government does not constitute a binding direction to modify the demurrage scale, but rather a suggestion for reconsideration. The appeal was allowed, overturning the High Court's decision that had favored the importer, affirming the Port Trust's right to levy demurrage.