2010 (10) TMI 472 - HC - Customs

DEEC Scheme - Non-fulfilment of the export obligations - Realisation of outstanding dues - The petitioner is one of the partners of the firm - The auction notice has been issued for the realisation of outstanding dues against the firm M/s. Salma Arts - The notice it is mentioned that it has been issued on the information of U.P. Export Corporation Ltd. but in the counter affidavit it has been categorically stated that in the notice, by the Civil Authorities, U.P. Export Corporation Ltd. has been wrongly mentioned instead of the Regional Office, Kanpur, of the Joint Director General of Foreign Trade - on the ground of wrong mention of the name of U.P. Export Corporation, Kanpur, in the auction notice, the auction notice cannot become invalid when undoubtedly there was/is outstanding dues against the firm - The impugned auction notice has been issued for the realisation of outstanding dues of Rs. 17 lakhs -Being a partner the petitioner is jointly and severaly liable for the dues of the firm and, therefore, the petitioner is liable for the dues of the firm unless the demand against the firm stand set aside by any competent court. In the circumstances, we decline to quash the auction notice - It would be open to the authority concerned to proceed for realisation of the demand in accordance with the law.

Summary

Issues:
1. Quashing of auction notice
2. Release of original shipping bills
3. Release of DEEC books
4. Decision on appeal by Joint Director General of Foreign Trade
5. Any other relief deemed fit by the Hon'ble Court
6. Cost of the petition

Issue 1: Quashing of auction notice
The petitioner sought a writ to quash an auction notice for the recovery of outstanding dues against a partnership firm, M/s. Salma Arts, in which the petitioner was a partner. The notice mentioned dues of Rs. 17 lakhs against the firm. The court found that the notice was valid as there were indeed outstanding dues against the firm. The petitioner, being a partner, was jointly liable for the firm's dues unless set aside by a competent court. Therefore, the court declined to quash the auction notice, allowing the authorities to proceed with the recovery of dues.

Issue 2: Release of original shipping bills
The petitioner requested a writ to direct the release of original shipping bills for submission to the Assistant Collector of Customs. The court directed that this claim could be more appropriately considered by the concerned authorities. Respondents were directed to dispose of any application for the release of original shipping bills expeditiously, preferably within two months, in accordance with the law.

Issue 3: Release of DEEC books
Similarly, the petitioner sought a writ for the release of DEEC Books for submission before the Joint Director General of Foreign Trade. The court directed that this claim could also be more appropriately considered by the relevant authorities. Respondents were instructed to process any application for the release of DEEC Books promptly, preferably within two months, in compliance with legal procedures.

Issue 4: Decision on appeal by Joint Director General of Foreign Trade
The petitioner had filed an appeal against an order declaring the firm as a defaulter. The court noted that the respondents denied the filing of this appeal, and it was deemed a disputed question of fact that could not be resolved in writ jurisdiction. The court did not have evidence of the appeal being filed, and therefore, this issue could not be adjudicated in the writ petition.

Issue 5: Any other relief deemed fit by the Hon'ble Court
The court disposed of the writ petition with observations on the various claims made by the petitioner. It was emphasized that the petitioner should pursue appropriate remedies, such as filing applications for the release of documents, through the designated authorities. The court did not award any specific relief beyond the directions given to the concerned respondents.

Issue 6: Cost of the petition
No specific order was made regarding the cost of the petition, indicating that there would be no cost imposed on the petitioner. The judgment was delivered by the High Court with detailed analysis and directions for each issue raised in the writ petition.