Contractual detention charges and cargo release: High Court permits release on bank guarantee while leaving liability to CESTAT.
Where detention charges claimed by a shipping line depend on contractual terms and are already pending before the CESTAT, writ jurisdiction should not finally ermine that liability. The High Court noted that customs authorities had not insisted on demurrage, but the shipping line's asserted lien and detention charge claim remained a separate contractual dispute requiring adjudication on merits by the statutory forum. To balance release of the imported consignment with protection of the shipping line's claim, the Court permitted release subject to furnishing a bank guarantee for the value of the goods and directed expedited CESTAT proceedings.
Issues: (i) Whether the petitioner could obtain release of the imported consignment without payment of demurrage or detention charges claimed by the shipping line; (ii) whether release of the consignment could be conditioned on furnishing security pending adjudication before the CESTAT.
Issue (i): Whether the petitioner could obtain release of the imported consignment without payment of demurrage or detention charges claimed by the shipping line.
Analysis: The dispute arose after the goods had already been directed to be released in earlier proceedings, but the shipping line resisted delivery on the basis of contractual detention charges and asserted a lien over the goods. The Court noted that the customs authority had declined to insist upon demurrage, while the shipping line's claim for detention charges remained governed by the contract of carriage and the pending challenge before the CESTAT. In writ jurisdiction, the Court declined to finally decide the contractual liability for detention charges, since that issue required adjudication of disputed facts and was already under consideration before the CESTAT.
Conclusion: The petitioner was not granted unconditional release free from the shipping line's claim; the detention charge dispute was left to be decided by the CESTAT.
Issue (ii): Whether release of the consignment could be conditioned on furnishing security pending adjudication before the CESTAT.
Analysis: To ensure implementation of its earlier directions and to balance the petitioner's need for release against the shipping line's asserted contractual lien, the Court considered it appropriate to permit release on furnishing a bank guarantee. The security was fixed at the value of the consignment, and the pending proceedings before the CESTAT were directed to be expedited so that the rights of the parties could be determined independently on merits.
Conclusion: Release of the consignment was ordered subject to furnishing a bank guarantee, and the parties were directed to pursue expedited adjudication before the CESTAT.
Final Conclusion: The petition was disposed of by permitting release of the goods on security while leaving the controversy over detention charges to the statutory appellate forum.
Ratio Decidendi: Where detention or demurrage liability turns on contractual terms and is already within the domain of the statutory adjudicatory forum, writ relief may secure release of goods through appropriate security but should not finally determine the contractual charge dispute.
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