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In respect of the period during which the goods remained at the docks the appellants issued notices to the respondents demanding demurrage charges. With the exporters denying the liability the Port Trust authorities instituted various suits to recover wharfage and demurrage charges. We are in these appeals not concerned with the suits.

After the aforesaid suits had been instituted acrylic fibre was imported by the respondents. When the consignment arrived in Bombay Port the respondents filed bills of entry for clearance of the goods for home consumption. When necessary permission was granted by the custom authorities the appellant Board was called upon to release the goods. These goods were not released by the appellant as it demanded payment in respect of wharfage and demurrage which was due from these respondents in respect of earlier consignments of woollen rags which had been imported by them. This refusal of the appellants to allow the removal of the goods was based on a circular dated 2nd October 1979 which had been issued by the appellants. The said circular, inter alia, stated as follows:

The Board of Trustees of the Port of Bombay have been advised that under Section 171 of the Indian Contract Act, 1872, they have a general lien which they can exercise on the goods which came into their custody of importers, exporters, owners, consignee who have for any reason whatsoever not paid the Port Trust charges such as wharfage, crainage, storage demurrage or any other dues in respect of any earlier consignment/s imported/exported or sought to be exported by them.

In the circumstances this department will exercise a lien for General Balance of account in respect of wharfage, crainage, storage, demurrage and other dues of the Board of Trustees of the Port of Bombay against the importers/exporters, owners of consignees of the goods taken charge of by the Board of the Trustees.

The appellants in the present case are contending that they are wharfingers and the goods which were imported and off loaded at the port were with them as bailee. The submission of the learned counsel for the appellants was that in the absence of a contract to the contrary as bailee of the goods now imported, namely, acrylic fibre the said consignment could be retained by the appellants as security for the amount due to them towards wharfage and demurrage charges in respect of the earlier consignment of woollen rags. While considering this contention we have also to examine whether the claim for wharfage and demurrage could be covered by the expression general balance of account occurring in Section 171 of the Contract Act.

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(a) transhipping of passengers or goods between vessels in the port or port approaches; (b) landing and shipping of passengers or goods from or to such vessels to or from any wharf, quay, jetty, pier, dock, berth, mooring, stage or erection, land or building in the possession or occupation of the Board or at any place within the limits of the port or port approaches; (c) cranage or portage of goods or any such place; (d) wharfage, storage or demurrage of goods on any such place; (e) any other service in respect of vessels, passengers or goods, [2] Different scales and conditions may be framed for different classes of goods and vessels.