Court Orders Waiver of Rent/Demurrage Charges for Detained Goods The court ruled in favor of the petitioner in a Writ of Mandamus seeking to waive rent/demurrage charges for detained goods. The court clarified that ...
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Court Orders Waiver of Rent/Demurrage Charges for Detained Goods
The court ruled in favor of the petitioner in a Writ of Mandamus seeking to waive rent/demurrage charges for detained goods. The court clarified that custodians must comply with the directive of not charging rent or demurrage on detained goods as per Regulation 6(1)(l) of the Handling of Cargo in Customs Area Regulation, 2009. The court held that the Writ Petitions were maintainable, directing the custodians to waive charges in accordance with the Department's directive within a specified time frame. M/s.Calyx Container Terminals and M/s.K.Steamship Agencies were instructed to comply with the court's directions without costs to the petitioner.
Issues: 1. Petitioner seeking Writ of Mandamus to waive rent/demurrage charges for detained goods. 2. Interpretation of Regulation 6(1)(l) of the Handling of Cargo in Customs Area Regulation, 2009. 3. Compliance of custodian (third respondent) with directive of Department. 4. Dispute regarding waiver of charges by third respondents. 5. Maintainability of Writ Petition under Article 226 of the Constitution of India.
Analysis: 1. The petitioner, engaged in importing particle boards, sought a Writ of Mandamus to direct the Deputy Commissioner of Customs to waive rent/demurrage charges for goods detained for investigation. The detention period was from 02.12.2016 to 27.12.2016, with the Department directing waiver of charges. The petitioner argued that as the detention was not their fault, the third respondent container terminal should waive charges and release the goods.
2. The Handling of Cargo in Customs Area Regulation, 2009, specifically Regulation 6(1)(l), prohibits custodians from charging rent or demurrage on goods detained by Customs officials. The second respondent certified the detention period and ordered the custodian not to charge rent or demurrage. The court ruled that custodians cannot interpret this directive and must comply with it fully. In one case, where goods were cleared on 06.01.2017, the court deemed it unreasonable to levy charges from 28.12.2016 to 06.01.2017, as the petitioner promptly cleared the cargo after the order.
3. The third respondents, M/s.Calyx Container Terminals and M/s.K.Steamship Agencies, had different responses to the waiver directive. While M/s.Calyx Container Terminals complied, M/s.K.Steamship Agencies only provided a 25% waiver, contrary to the regulation. The court emphasized that custodians are bound by the order and cannot charge any rent or demurrage during the detention period as mandated by the regulation.
4. The court held that the matter was not contractual but involved statutory regulation implementation. Therefore, the Writ Petitions were deemed maintainable, and the custodians were directed to waive rent/demurrage charges as per the Department's directive within a specified time frame.
5. The court concluded by directing M/s.Calyx Container Terminals to waive charges from 02.12.2016 to 06.01.2017 and M/s.K.Steamship Agencies to waive charges from 02.12.2016 till the containers were cleared on 07.01.2017/13.01.2017. The custodians were instructed to comply with the court's directions within two weeks, ensuring full and faithful compliance without costs incurred by the petitioner.
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