Court Orders Release of Pigeon Peas and Soyabean, Sets Conditions for Vessel, Urges Customs Adjudication

The court directed the release of the Pigeon peas cargo, modified conditions for the provisional release and re-export of the genetically modified Soyabean cargo, and allowed the release of vessel MV Polaris Z upon compliance with specified conditions. The customs authorities were instructed to expedite the adjudication proceedings.

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Issues Involved:
1. Legality of the seizure of genetically modified Soyabean and Pigeon peas cargo.
2. Provisional release and re-export of the seized Soyabean cargo.
3. Release of the vessel MV Polaris Z.

Issue-wise Detailed Analysis:

1. Legality of the Seizure of Genetically Modified Soyabean and Pigeon Peas Cargo:
The petitioners, importers of Soyabean and Pigeon peas, challenged the seizure of their cargo by customs authorities. The Soyabean cargo was allegedly genetically modified and thus prohibited for import, while the Pigeon peas were not prohibited. The seizure was based on the grounds that genetically modified Soyabean is not permitted for import into India. The court noted that there was no prohibition on the import of Pigeon peas, and customs authorities admitted this fact. Therefore, the court directed the customs authorities to permit the release and unloading of the Pigeon peas cargo under strict supervision and videography, ensuring no mixing with the Soyabean cargo.

2. Provisional Release and Re-export of the Seized Soyabean Cargo:
The court considered the feasibility of deporting the genetically modified Soyabean cargo back to its country of origin, Mozambique. Customs authorities proposed three conditions for the provisional release of the Soyabean cargo: furnishing a bond for the entire value of the cargo (Rs. 84 crores), providing a bank guarantee of 25% of the cargo value (Rs. 21 crores), and submitting an undertaking to unload the cargo at Mozambique Port. The petitioners agreed to the bond and undertaking conditions but found the bank guarantee condition harsh. The court, referencing decisions from the High Court of Madras, modified the bank guarantee requirement to Rs. 10 crores, finding it a balanced approach. The court directed the petitioners to comply with these conditions for the provisional release and re-export of the Soyabean cargo.

3. Release of the Vessel MV Polaris Z:
The vessel MV Polaris Z, which carried the cargo, was also seized. The court noted that the vessel's detention was solely due to it carrying the allegedly prohibited Soyabean cargo. Since the cargo was to be deported back to Mozambique, the vessel needed to be released to facilitate this. The court imposed identical conditions for the vessel's release as those for the Soyabean cargo, including furnishing a bond, providing a bank guarantee, and submitting an undertaking. The vessel and cargo were not to be released until these conditions were met. Additionally, the petitioners were required to file undertakings from their authorized representatives in India to cooperate in the adjudication proceedings.

Conclusion:
The court disposed of both petitions by directing the release of the Pigeon peas cargo, modifying the conditions for the provisional release and re-export of the Soyabean cargo, and allowing the release of the vessel MV Polaris Z upon compliance with the specified conditions. The customs authorities were instructed to expedite the adjudication proceedings.

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