1999 (5) TMI 573 - AT - Customs

Jurisdiction of Customs Department/Appellate Tribunal - Partnership firm - Dissolution - Customs House Agent Licence - Renewal of

Summary

Issues:
1. Suspension of C.H.A. Licence of M/s. B.B. Bose & Sons under Regulation 21 of Customs House Agents Licensing Regulations, 1984.
2. Validity of Partnership Deeds of 1978 and 1996.
3. Dispute resolution mechanism for contractual civil obligations between parties.
4. Dissolution of Partnership Firm due to the death of a partner.
5. Renewal of C.H.A. Licence post the dissolution of the Partnership Firm.

Analysis:

Issue 1: Suspension of C.H.A. Licence
The appeal was against the suspension of the C.H.A. Licence of M/s. B.B. Bose & Sons under Regulation 21 of the Customs House Agents Licensing Regulations, 1984. The dispute arose due to the death of one of the partners, Shri Ganesh Chandra Bose, and subsequent disagreements regarding the Partnership Deeds.

Issue 2: Validity of Partnership Deeds
The core of the dispute revolved around the validity of the Partnership Deeds of 1978 and 1996. The Commissioner of Customs, Calcutta, adjudicated that the amended deed of April 1996, giving preference to Shri Sanjoy Kumar Bose, was tampered and not genuine. The parties, Shri Bijoy Kumar Bose and Shri Sanjoy Kumar Bose, presented arguments regarding the authenticity of the Partnership Deeds and the renewal of the C.H.A. Licence.

Issue 3: Dispute Resolution Mechanism
The Tribunal highlighted that Customs Authorities were not the appropriate forum to determine the validity of documents or resolve disputes related to contractual obligations. It was emphasized that such disputes should be addressed through a Civil Suit in a Court of Law, not before the Department or Tribunal. The Tribunal stressed the need for legal recourse in contractual matters.

Issue 4: Dissolution of Partnership Firm
Considering the legal implications of the Partnership Act, the Tribunal noted that the death of a partner in a two-partner firm would automatically dissolve the Partnership Firm, regardless of any agreement within the Partnership Deed. The dissolution of M/s. B.B. Bose & Sons due to the death of Shri Ganesh Chandra Bose had significant implications on the renewal of the C.H.A. Licence.

Issue 5: Renewal of C.H.A. Licence
Given the dissolution of the Partnership Firm, the Tribunal concluded that the question of renewing the C.H.A. Licence of the said Firm did not arise. The Tribunal directed that the sons of Shri Ganesh Chandra Bose and Dinendra Kumar Bose could apply for fresh C.H.A. Licences with a new Partnership Deed. The matter was remanded for a fresh decision in accordance with the legal position regarding the dissolution of the Partnership Firm.

In conclusion, the Tribunal set aside the suspension order and provided clarity on the dissolution of the Partnership Firm, emphasizing the need for legal procedures in resolving contractual disputes and the subsequent renewal of licenses.