Case Note & Summary
The petitioner, Sahaj Impex, filed a writ petition under Article 226 of the Constitution of India before the Bombay High Court seeking a direction to the respondents, Balmer Lawrie & Co Ltd and another, to release container No. TTNU9895081 containing imported goods declared vide bill of entry No. 7540462 dated 07.08.2018 without payment of rent, demurrage, and other charges for re-export. The petitioner had imported goods which were not cleared by customs due to misdeclaration. The petitioner then sought to re-export the goods. However, the respondents demanded payment of rent and demurrage charges for the period the container was detained. The petitioner contended that since the goods were not cleared by customs and the petitioner was willing to re-export, the detention was not attributable to the petitioner and thus no charges were payable. The respondents argued that the container was used by the petitioner and charges accrued. The court, after hearing the parties, held that the petitioner was not liable for the full amount of rent and demurrage as the detention was due to customs issues. The court directed the respondents to release the container upon payment of a reduced amount of Rs. 50,000 as a one-time settlement, without prejudice to the rights of the parties. The petition was disposed of accordingly.
Headnote
A) Constitutional Law - Writ Jurisdiction - Article 226 of the Constitution of India - High Court's power to issue directions - Petitioner sought direction to respondents to release container without payment of rent, demurrage, and other charges for re-export - Court held that since customs clearance was refused and petitioner was willing to re-export, detention charges were not attributable to petitioner - Direction issued to release container upon payment of a reduced amount (Paras 1-13).
Issue of Consideration
Whether the petitioner is liable to pay rent, demurrage, and other charges for the detention of a container containing imported goods when the goods were not cleared by customs due to misdeclaration and the petitioner sought re-export.
Final Decision
The court directed the respondents to release the container upon payment of a reduced amount of Rs. 50,000 as a one-time settlement, without prejudice to the rights of the parties. The petition was disposed of accordingly.
Law Points
- Writ jurisdiction under Article 226
- liability for demurrage and rent charges
- customs clearance refusal
- re-export of goods
- fundamental rights
Case Details
2021 LawText (BOM) (01) 40
WRIT PETITION NO. 10492 OF 2019
Ujjal Bhuyan, Milind N. Jadhav
Mr. Vimal Jha i/by Lex Prime Law Firm for the Petitioner, Mr. J.B. Mishra for Respondent No. 2
Balmer Lawrie & Co Ltd & Anr.
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petition under Article 226 of the Constitution of India seeking direction to release container without payment of rent, demurrage, and other charges for re-export.
Remedy Sought
Direction to respondents to release container No. TTNU9895081 containing imported goods declared vide bill of entry No. 7540462 dated 07.08.2018 without paying rent, demurrage, and other charges for re-export.
Filing Reason
Petitioner's imported goods were not cleared by customs due to misdeclaration; petitioner sought to re-export but respondents demanded payment of rent and demurrage charges.
Previous Decisions
Notice issued on 10.02.2020; order dated 13.03.2020 noting respondents not served; proceedings on 05.11.2020 where respondent No. 2 appeared; registry note dated 08.01.2021 that respondent No. 1 was served as per bailiff report dated 21.12.2020.
Issues
Whether the petitioner is liable to pay rent, demurrage, and other charges for the detention of the container when customs clearance was refused and petitioner sought re-export.
Submissions/Arguments
Petitioner argued that since customs clearance was refused and petitioner was willing to re-export, detention charges were not attributable to petitioner and thus not payable.
Respondents argued that the container was used by petitioner and charges accrued for the period of detention.
Ratio Decidendi
In a writ petition under Article 226, where imported goods are not cleared by customs due to misdeclaration and the importer seeks re-export, the importer is not liable for the full amount of rent and demurrage charges for the period of detention, as the detention is not attributable to the importer. The court may direct release upon payment of a reduced amount as a one-time settlement.
Judgment Excerpts
By filing this petition under Article 226 of the Constitution of India, petitioner seeks a direction to the respondents to release the container No. TTNU9895081 containing the imported goods of the petitioner declared vide bill of entry No. 7540462 dated 07.08.2018 without paying rent, demurrage and other charges for re-export.
Procedural History
Notice issued on 10.02.2020; order dated 13.03.2020 noting respondents not served; proceedings on 05.11.2020 where respondent No. 2 appeared; registry note dated 08.01.2021 that respondent No. 1 was served as per bailiff report dated 21.12.2020; final hearing on 18.01.2021.
Acts & Sections
- Constitution of India: Article 226
