TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the corporate debtor was entitled, under moratorium, to seek release of cargo detained by the customs warehouse/custodian when the cargo belonged to the importer and not to the corporate debtor, and whether the respondent could retain the goods for unpaid dues.
Analysis: The records showed that the consignee and owner of the cargo was the importer, while the corporate debtor acted only as a customs house agent for clearance purposes. The invoices, bills of lading, delivery orders and bills of entry all indicated that the goods were not the corporate debtor's asset. The respondent's claim to retain the cargo was also supported by its asserted statutory and contractual lien over the imported goods until the dues were paid. Since the goods did not form part of the corporate debtor's assets, the moratorium could not be invoked to compel release of the consignment.
Conclusion: The application for release of the consignment was not maintainable and the respondent was entitled to retain the cargo; the claim was rejected.
Ratio Decidendi: Moratorium under the Insolvency and Bankruptcy Code does not extend to goods that are not assets of the corporate debtor, and a customs custodian may retain imported cargo in accordance with its lawful lien until dues are satisfied.
TaxTMI 
