Synopsis

This judgment by the Gujarat High Court dismisses a first appeal filed by the Board of Trustees of the Port of Kandla (the plaintiff) against the dismissal of its suit for recovery of port dues. The plaintiff had provided various services to a vessel, M.T. IRINIO, which sailed away without paying the dues. The plaintiff sought to recover the amount from the local shipping agents (defendant No. 1 and defendant No. 2), the vessel's master, and the charterer (Indian Oil Corporation). The trial court dismissed the suit, and the High Court affirmed this decision. The court held that the agents were not personally liable as they were acting for a disclosed principal (the foreign shipowner, M/s Duchess Shipping Co.), and no specific contract making them personally liable was proven. Furthermore, the plaintiff failed to prove the contents of its primary bill, and the claim against the charterer was time-barred.

1. Heading for the judgment

Citation: Board of Trustees of the Port of Kandla v. Prestonjee Bhicajee (Kutch) & Ors., R/First Appeal No. 60 of 2000, decided on 18.03.2026 (Gujarat High Court)
Coram: Hon'ble Mr. Justice Devan M. Desai (Single Judge)
Core Law: Indian Contract Act, 1872; Major Port Trusts Act, 1963; Law of Agency; Limitation Act, 1963.

Gujarat High Court holds that shipping agents are not personally liable for port dues of a disclosed foreign principal; mere agency does not create liability under Section 230 of the Contract Act.

2. Legal framework

This judgment provides a detailed exposition of the law of agency, particularly the liability of agents for acts done on behalf of a disclosed principal.

• Indian Contract Act, 1872:
  Section 230: This is the central provision. It states that in the absence of a contract to that effect, an agent cannot personally enforce contracts entered into on behalf of his principal, nor is he personally bound by them. The provision lists three exceptional circumstances where a contract to the contrary is presumed: (1) where the contract is made by an agent for the sale or purchase of goods for a merchant resident abroad; (2) where the agent does not disclose the name of his principal; (3) where the principal, th

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