FOOD CORPORATION OF INDIA vs ABHIJIT PAUL

The Supreme Court addressed the issue of whether the Food Corporation of India could recover demurrages imposed by the Railways from its transport contractors under a specific contractual clause. The court found that the intention of the parties, as reflected in the contract's language, did not encompass demurrages within the term 'charges.' Consequently, the court upheld the High Court's decision that demurrages could not be recovered from the contractors.