2023 (2) TMI 1322 - HC - Indian Laws

Delhi HC dismisses petition challenging container freight station charges during Covid-19 citing binding precedent

ARL Infratech Let and Ors. Versus Union of India and Ors.

Delhi HC dismissed petition challenging ground rent, demurrage and detention charges levied by container freight stations during Covid-19 pandemic. Court ... Charging ground rent, demurrage and other detention charges - contrary to the various Government advisories issued during the Covid-19 pandemic - transfer of proceedings from the High Court of Gujarat to the High Court of Delhi - HELD THAT:- The issues raised in this petition relate to various charges which were collected by the container freight stations (CFSs) during the pandemic period. As per the Petitioners, the said issue is now squarely covered by a judgment in Polytech Trade Foundation v. Union of India & Ors. [2021 (8) TMI 617 - DELHI HIGH COURT] - In the said case along with other connected cases, the ld. Division Bench of this Court has dealt with identical issues and has arrived at its conclusions qua each of the aspects. The prayer for not charging ground rent, demurrage and detention charges has already been rejected. Thus, no recovery thereof would be liable to be directed. None appears for the Petitioner today and even on the last date. In view of the fact that the issue is squarely covered, the writ petition does not deserve to be kept pending and accordingly the same is dismissed in terms of the above judgement which shall apply mutatis mutandis to the present petition as well. Petition dismissed. Issues:- Transfer of proceedings from the High Court of Gujarat to the High Court of Delhi- Charging of ground rent, demurrage, and container detention charges during the Covid-19 pandemicTransfer of Proceedings:The judgment involved the transfer of proceedings from the High Court of Gujarat to the High Court of Delhi. The Supreme Court, in a Transfer Petition, directed the transfer of Special Civil Application No. 9046 of 2020 from Gujarat to Delhi. This decision was made in the interest of justice, and the transfer was duly executed.Charging of Ground Rent, Demurrage, and Detention Charges:The main issue in the case was the charging of ground rent, demurrage, and container detention charges during the Covid-19 pandemic. The petitioners argued against these charges, citing various Government advisories issued during the pandemic. However, the Division Bench of the Delhi High Court, in a related case, had already addressed identical issues. The Bench rejected the prayer for not charging these fees, emphasizing that the situation involved contractual rights between private individuals and regulation by statutory authorities. The Court found that the petitioners' request for across-the-board amnesty from penal charges was not feasible. It noted that some importers managed to clear their consignments during the lockdown, indicating that the inability to do so was not inherent. The Court also highlighted that directing no penal charges would disincentivize importers and exporters, leading to clogging of facilities and going against the objective of establishing container freight stations. Consequently, the Delhi High Court dismissed the present petition, as the issues raised were already addressed in the prior judgment.In conclusion, the judgment dealt with the transfer of proceedings and the charging of ground rent, demurrage, and container detention charges during the Covid-19 pandemic. The decision was based on the prior judgment by the Division Bench of the Delhi High Court, which had already addressed and rejected similar claims.