THE TRUSTEES OF THE PORT OF BOMBAY vs THE PREMIER AUTOMOBILES LTD.

The Supreme Court held that under Section 61B of the Bombay Port Trust Act, the Board's liability for loss or damage to goods is that of a bailee as per the Contract Act, specifically Sections 151, 152, and 161, without the presence of a special contract. The Court clarified that the immunity provided under paragraph 2 of Section 87 does not apply to the Board in this case, as it pertains to a different subject matter. Consequently, the Board was found liable for the damage caused to the machinery during transit by its employees, affirming the High Court's ruling that the Board is responsible for the torts committed by its servants in the course of their employment.