Court confirms demurrage charges payable by importers, not Customs. Petitioners must apply to CELEBI for waiver.

The court dismissed the writ petitions, confirming that CELEBI is entitled to charge demurrage for the goods consigned to its custody. The liability to pay demurrage lies with the petitioners-importers and not with the Customs authorities. If the petitioners seek a waiver of demurrage charges, they must apply to CELEBI, which will consider the request based on its waiver policy.

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Issues Involved:
1. Whether CELEBI could charge demurrage on goods imported by the petitioners stored in its premises.
2. Applicability and interpretation of Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009.
3. Legal provisions and case law regarding the charging of demurrage by custodians.
4. Whether the Customs authorities can direct custodians to waive demurrage charges.
5. The petitioners' liability to pay demurrage charges to CELEBI.

Detailed Analysis:

1. Whether CELEBI could charge demurrage on goods imported by the petitioners stored in its premises:
The core issue was whether CELEBI could charge demurrage on goods imported by the petitioners and stored in CELEBI’s premises. The petitioners contended that CELEBI had no right to charge demurrage based on Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009. The court examined the legal provisions and past judgments to determine the validity of CELEBI’s claim for demurrage.

2. Applicability and interpretation of Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009:
Regulation 6(1)(l) states that the Customs Cargo Service provider shall not charge any rent or demurrage on goods seized, detained, or confiscated by Customs authorities, subject to any other law for the time being in force. The court noted that this regulation is subject to other prevailing laws, which could include statutory provisions that authorize the charging of demurrage.

3. Legal provisions and case law regarding the charging of demurrage by custodians:
The court referred to several landmark judgments, including Trustees of the Port of Madras v. Aminchand Pyarelal (1976), Board of Trustees of the Port of Bombay v. Indian Goods Supplying Co. (1977), and Board of Trustees of the Port of Bombay v. Jai Hind Oil Mills Co. (1987). These cases established that custodians, including port trusts and airport authorities, have a statutory right to charge demurrage for goods stored in their premises, irrespective of whether the delay in clearance was due to the importer’s fault or not. The court also referred to the Grand Slam International case (1995), which reinforced the custodian’s right to charge demurrage even if the delay was due to Customs authorities' actions.

4. Whether the Customs authorities can direct custodians to waive demurrage charges:
The court held that Customs authorities do not have the jurisdiction to direct custodians to waive demurrage charges. This was supported by the Supreme Court's decision in Grand Slam International, which stated that the issuance of detention certificates by Customs authorities does not bind custodians to waive demurrage charges. The court emphasized that custodians operate under statutory provisions that allow them to charge demurrage, and these provisions cannot be overridden by Customs authorities' directions.

5. The petitioners' liability to pay demurrage charges to CELEBI:
The court concluded that the petitioners are liable to pay demurrage charges to CELEBI. It was noted that CELEBI’s right to charge demurrage is backed by statutory regulations under the Airports Authority of India Act, 1994, and the concession agreement with Delhi International Airport Pvt Ltd (DIAL). The court dismissed the petitioners' argument that Regulation 6(1)(l) of the Handling of Cargo Regulations exempted them from paying demurrage, as this regulation is subordinate to other laws that authorize the charging of demurrage.

Conclusion:
The court dismissed the writ petitions, confirming that CELEBI is entitled to charge demurrage for the goods consigned to its custody. The liability to pay demurrage lies with the petitioners-importers and not with the Customs authorities. The court also clarified that if the petitioners seek a waiver of demurrage charges, they must apply to CELEBI, which will consider the request based on its waiver policy.

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