## Facts

- A dock company had statutory authority to levy dock dues on lighters entering its docks, subject to an exemption for lighters “bona fide engaged in discharging or receiving goods,” limited to the period “so long as” they were so engaged.
- In one instance, two lighters entered intending to discharge into a ship in dock, but the ship could not receive the cargo and the lighters left without discharging.
- In another instance, a lighter entered, completed discharge on a Saturday, but remained in dock until Monday despite being able to depart earlier.
- In a third instance, a lighter entered intending to discharge into a particular ship; that ship could not receive the cargo, and the goods were later discharged into a different vessel after the lighter remained in dock.
- The dock company demanded dues for the lighters’ presence in dock; the lighter operators claimed exemption under the “bona fide engaged” provisions.
- The Court of Appeal found the exemption applied; the dock company appealed.

## Issues

1. Whether a lighter that enters with a genuine intention to discharge but does not in fact discharge any cargo qualifies as “bona fide engaged in discharging or receiving goods.”
2. Whether the exemption extends beyond completion of discharge to cover time the lighter remains in dock when it could have departed.
3. Whether the exemption covers an entire stay in dock when discharge is delayed or intermittent, including periods when no cargo handling occurs.

## Decision

- The House of Lords reversed the Court of Appeal and found for the dock company.
- A lighter is not exempt when it enters intending to discharge but discharges no cargo; dues are payable.
- The exemption ends when discharge (or receiving) is completed; post-completion idle time is chargeable.
- When discharge occurs only later or intermittently, the exemption applies only to periods of actual cargo handling and not to substantial intervals of inactivity.

## Legal Principles

- Statutory exemptions from a general charging power are construed narrowly and confined to their terms.
- “Bona fide engaged in discharging or receiving goods” requires actual, contemporaneous engagement in cargo transfer, not merely an honest commercial purpose or intention.
- Language such as “so long as” imposes a strict temporal limit: the exemption lasts only during the qualifying activity and ceases when that activity is not occurring.

## Conclusion

The House of Lords held that dock-dues exemptions for lighters “bona fide engaged” in loading or discharging apply only while the lighter is actually performing cargo operations, and do not extend to frustrated intentions, completed operations followed by delay, or idle intervals unconnected to contemporaneous cargo handling.


London & India Docks Co. v. Thames Steam Tug & Lighterage Co., [1909] A.C. 15 (H.L.)