142. Jenneson, Taylor & Co v Secretary of State for India in Council [1916] 2 KB 702

Cesser clause – charterers failing to provide for a lien for demurrage upon discharge – no cesser of liability

The facts

Wheat was shipped from Karachi to Avonmouth.

The cesser clause read as follows:

“Charterers’ liability to cease on completion of shipment, provided cargo is worth the freight and demurrage”.

The charterer presented bills of lading to the master in which there was no provision for a lien for demurrage.

Delay occurred at the port of discharge in consequence of which the owners claimed 4 days’ demurrage.

The charterers relied upon the cesser clause.

Findings

Rowlatt J sitting without a jury found that, the cesser clause did not protect the charterers.

Commentary

The finding in this case is justified by a straightforward interpretation of the cesser clause.

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