High Court Notice on Petition for Reimbursement of Ground Rent/Demurrage Charges

The High Court issued notice in response to a petition seeking reimbursement of ground rent/demurrage charges amounting to Rs. 34,05,952 imposed by respondent No.4. The petitioner alleges that the charges violate regulations prohibiting rent or demurrage on seized goods. The prayers include writs for detention certificates, a declaration of non-liability for payment, refund of charges, and reimbursement of paid charges. The court allowed direct service through speed post and e-mode, indicating the formal initiation of legal proceedings to address the petitioner's claims.

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Issues:
Petition seeking reimbursement of ground rent/demurrage charges despite an undertaking given by the respondent. Allegation of charges violating regulations. Prayers include issuance of writs for detention certificates, declaration of non-liability for payment, refund of charges, and reimbursement of paid charges. Reference to a Bombay High Court decision.

Analysis:
The petitioner has approached the High Court invoking Article 226 of the Constitution of India to seek reimbursement of ground rent/demurrage charges amounting to Rs. 34,05,952 imposed by respondent No.4. This claim arises from an undertaking given by respondent No.4 at Mundra Port following the seizure of goods imported under Bill of Entry No.6517176 due to alleged undervaluation of Plain White Paper in Rolls by the petitioner.

The petitioner contends that the charges levied contravene Regulation 6(1)(1) of the Handling of Cargo in Customs Areas Regulations, 2009. This regulation explicitly prohibits Customs Cargo Service Providers, including custodians of container freight stations, from charging rent or demurrage on goods seized, detained, or confiscated by the proper officer.

The prayers sought by the petitioner include the issuance of writs mandating the issuance of detention certificates, a declaration absolving the petitioner from paying any ground rent/demurrage to respondent No.4, a directive for the refund of the charged amount, and an order for the reimbursement of the charges already paid to respondent No.4. Additionally, the petitioner seeks any other appropriate orders deemed fit based on the circumstances of the case.

During the hearing, the petitioner's advocate cited a decision of the Bombay High Court in the case of SAHAJ IMPEX VS. BALMER LAWRIE & CO.LTD. & ANR, reported in 2021(1)TMI 821(Bom.), to support the argument that no rent should have been charged during the period of seven months, including the passing of an order by the Customs Excise and Service Tax Appellate Tribunal (CESTAT) on 14.07.2020, which challenged the onerous conditions imposed by the authority.

The High Court, represented by Honourable Ms. Justice Sonia Gokani and Honourable Ms. Justice Nisha M. Thakore, issued notice returnable on 01.12.2021. The court permitted direct service through speed post and e-mode in addition to the regular mode of service. This indicates the initiation of formal legal proceedings to address the issues raised by the petitioner regarding the reimbursement of ground rent/demurrage charges and the alleged violation of regulations by respondent No.4.

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