Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Major Port Trusts Act: Sections 58 59 and 62. |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Case Disposed Off |
Headnote | Major Port Trusts Act: Sections 58, 59 and 62. Import of goods for home consumption-Seizure of-Assessment of duty by Customs Authority-liability of payment of Port charges-On the bailor to pay the Board before removal of goods. Lien on goods-Board has a statutory lien towards rate and entitled to retain goods until storage charges are paid-Exercise of lien on goods no bar to recover storage charges-Non payment of port charges-Power of Board-Exercise of-Board being a statutory body may take recourse to law and could have sold off the goods. Appellant had imported into India, a consignment of bearings for home consumption and submitted a Bill of Entry for clearance of the goods. In the meanwhile, Revenue seized the goods under Section 110 of the Customs Act. Aggrieved, Appellant moved the High Court by filing a Writ Petition. However, Board of Trustee was not made a party. High Court in its interim order allowed the appellant to clear the goods on payment of duty assessed on the basis of C.I.F. Values provided the appellant furnished a bank guarantee for the differential amount of duty after proper assessment of goods by the Customs Authorities. Customs Authorities moved for modification of the interim order. High Court modified its order and directed that goods could be stored in a bonded warehouse of the Customs Authorities. This time also Board of Trustees was not made a party. Appellant, with a view to take advantage of the modified order sought to transfer the goods into the bonded warehouse of the Customs Authorities, without payment of the charges due to the Board of Trustees but the Board did not allow the same. Subsequently, the Board joined the proceeding and High Court passed further order in the matter on 2nd February, 1990, permitting the appellant to remove the goods without payment of Port charges on the appellant undertaking to pay all charge and Customs duty upon an effective adjudication of the matter.Aggrieved, the Board filed an appeal, and the Appellate Court stayed the order. In the meanwhile Customs Authority withdrew its seizure order. Thus, appellant could clear the goods by payment of due charges but made no efforts to clear the goods, knowing fully well that further demurrage charges would be incurred. Subsequently, Single Judge of the High Court disposed of the Writ Petition and directed the Customs Authorities to complete adjudication proceedings within stipulated time and if adjudication proceedings were decided in favour of the appellant, then the Customs Authorities would pay the demurrage charges for the period of detention of goods. High Court further held that by not allowing the removal of goods, the Board had exercised its right to lien, therefore, it was not entitled to claim any demurrage charges beyond 2nd February, 1990. It was also held that if the appellant paid the demurrage charges upto February 2, 1990, Customs Authorities would reimburse the same to the appellant. The Board filed an appeal against the said order. By an interim order appellants were permitted to clear the goods on payment of demurrage charges upto 2nd February, 1990 and on furnishing a Bank Guarantee in favour of the Board for the period 3rd February, 1990 till the date of Bank Guarantee. Appellants did not pay the demurrage charges nor furnished Bank Guarantee. In the meanwhile, Board had applied to the appellate Court for permission to sell the goods. Court vide its order dated 10.1.1992 did not express any opinion, instead asked the Board to decide the course of action itself. The appeal was finally disposed of by setting aside the Order of Single Judge. It was also held that the Board can recover charges for the entire period the goods remained with it. Hence this appeal. It was contended for the appellant that the right of lien under Section 59 of the Major Port Trusts Act is similar to a lien exercised by a bailee under Section 171 of the Indian Contract Act; and that once a right of lien has been exercised the bailee cannot charge rent for storage of goods; and that it was the duty of the Board to have sold the goods under Section 62 of the Major Port Trusts Act, so that further demurrage charges were not incurred since the Court on the application of the Board for permission to sale of goods directed the Board to decide the course of action by itself. |
Judge | Hon'ble Mr. Justice S.N. Variava |
Neutral Citation | 2002 INSC 97 |
Petitioner | Om Shankar Biyani |
Respondent | Board Of Trustees, Port Of Calcutta And Ors. |
SCR | [2002] 2 S.C.R. 19 |
Judgement Date | 2002-02-22 |
Case Number | 1407 |
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