TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal upholds Respondent's right to withhold consignment in insolvency case</h1> <h3>R. Venkatakrishnan, RP Versus Continental Warehousing Corporation (Nhava Sheva) Ltd.</h3> R. Venkatakrishnan, RP Versus Continental Warehousing Corporation (Nhava Sheva) Ltd. - TMI Issues involved:1. Claim by Resolution Professional for release of consignment during Corporate Insolvency Resolution Process (CIRP).2. Respondent's assertion of ownership and lien on consignment.3. Interpretation of ownership rights and liabilities under Customs Act and Insolvency and Bankruptcy Code.Analysis:1. The Resolution Professional filed an application seeking directions for the release of a consignment held by the Respondent during the CIRP. The Respondent had withheld a consignment belonging to a third party, M/s. Sundaram Fasteners, due to outstanding payments from the Corporate Debtor. The Resolution Professional argued that the Respondent should not have held back the consignment during the moratorium period and requested the release of the goods for the smooth continuation of the CIRP.2. The Respondent contended that the consignment did not belong to the Corporate Debtor but to M/s. Sundaram Fasteners. As a Customs bonded Warehouse and Container Freight Station (CFS), the Respondent claimed the right to exercise a lien on the cargo for dues payable to Customs and services rendered. The Respondent highlighted that the importer had outstanding dues jointly payable by M/s. Sundaram Fasteners and the Corporate Debtor, and it had the right to retain the goods until payment was made.3. Upon review of the submissions, it was established that the Corporate Debtor was not the owner of the goods but acted as a Customs House Agent for clearance services. The consignee was identified as M/s. Sundaram Fasteners, and documents confirmed that the Corporate Debtor was not the consignee but a service provider. The Tribunal emphasized that the consignment did not belong to the Corporate Debtor, and even if it did, the contractual and bailment arrangements under the Customs Act protected the Respondent's right to retain the goods until dues were settled. Therefore, the application was dismissed as misconceived, affirming the Respondent's right to withhold the consignment.
TaxTMI 
TaxTMI 
