2010 (10) TMI 1125 - HC - Customs

Customs Auction Dispute: Writ Petition Dismissed, Claim Must be Pursued in Civil Court

The court held that the petitioner's claim for damages arising from goods auctioned by the customs department cannot be adjudicated under Article 226 of ... - Issues involved: Adjudication of damages u/s Article 226 of the Constitution of India for goods sold in public auction by customs department.Adjudication of damages:The petitioner, an importer of goods, sought a writ of directions to the respondent customs department to pay a sum of &8377; 2,17,76,463/- with interest as damages for goods auctioned by the first respondent before the petitioner could release them by paying customs duty. The court noted that the petitioner's claim for damages due to the sale of imported goods cannot be adjudicated in writ jurisdiction u/s Article 226 of the Constitution of India. The court opined that the proper forum for the petitioner to seek adjudication of its claim is the Civil Court, where it can adduce oral and documentary evidence to demonstrate the loss suffered. The writ petition was disposed of with liberty granted to the petitioner to initiate appropriate proceedings before the competent court of law for redressal of its grievance.