COMPANIA MARITIMA INTERNATIONAL S.A. Vs. THE UNION OF INDIA (UOI) BY THE SECRETARY TO THE GOVERNMENT OF INDIA, MINISTRY OF WORKS, HOUSING AND SUPPLIES

JUDGEMENT

(1.) THE plaintiffs are the appellants. The suit was laid for the balance of freight due and for demurrage and interest on these sums under the following circumstances. The appellants were the owners of a steamship called Rio in which a consignment of goods was received by the Union Government at the Port of Madras. The charterers were liable for payment of the balance of the freight, but they did not pay the freight when the steamer arrived in the Port of Madras. Consequently the ship -owners refused to discharge the cargo and thereupon the Government of India gave an undertaking to pay the balance of freight due.

(2.) THE lower Court gave a decree for the sum claimed but disallowed interest for the period prior to 13th February, 1953 on balance of freight and demurrage. The reasoning of the lower Court was that interest was not payable because the principal sums claimed were not payable at a certain time and therefore interest was payable only from the date of demand.

(3.) CLAUSE 7 of the charter party makes provision for payment of demurrage. Though the sums are payable by virtue of a written instrument there is no indication as to the time when such sums should be paid. In the very nature of things the payment of demurrage was a contingent payment with reference to which no certain time can be indicated. The learned Judge in the Court below was therefore right in awarding interest from the date of demand. The appeal fails and is dismissed with costs.