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2015 (11) TMI 501 - HC - CustomsDemand of ground rent - Request for auction of cargo - whether the petitioner is entitled to get the cargo cargo destuffed from the FCL container which is lying at Cochin Ports C.Y.(Rajeev Gandhi Container Terminal) of the respective shipping lines beyond a period of two months from the date of its landing - Held that - 4th respondent failed to take delivery of the cargo and the Port authorities failed to destuff the cargo from the container and to release the container. The Ground Rent charge was demanded by the Port authorities for retaining the goods kept in the container at the Port premises for a long time which is clear from the records itself. The Port Trust Authority has not destuffed the goods. Moreover, they have not filed any counter affidavit with regard to any difficulty to comply with the request. When the writ petitioners/Shipping Agents approached the customs to take the containers they contended that they have not detained any containers. In short, because of the lapse on the part of the 4th respondent on one side and the lapses from the side of Port authorities on the other side, the writ petitioners were forced to pay huge amount towards Ground Rent , for keeping the containers without being destuffed in the premises of the Port. Board, after the expiry of two months from the time when such goods have passed into its custody may think it fit to sell the goods by public auction. In such a case, the Board shall follow the procedure under Section 61 of the MPT Act. But, the petitioner has not made any application. Therefore, his contention regarding release of goods is unsustainable. In the circumstance petitioner is at liberty to file an application before the Port Trust authorities within 15 days from the production of this judgment - Decided against Appellant.
Issues Involved:
1. Entitlement of the petitioner to get the cargo destuffed from the container. 2. Liability of the Port Trust to auction the cargo and refund the amount debited from the petitioner. 3. Application of Sections 42, 59, 60, 61, 62, and 63 of the Major Port Trusts Act, 1963. 4. Liability of the Port Trust to collect Ground Rent. 5. Petitioner's claim for refund of overcharges. Issue-Wise Detailed Analysis: 1. Entitlement of the petitioner to get the cargo destuffed from the container: The petitioner, a shipping and steamer agent, sought a direction to destuff the cargo from the container lying in the Port Trust and to auction the cargo in dispute. The petitioner argued that the first respondent is bound to discharge their obligations under the Major Port Trusts Act, 1963 (MPT Act), including the power to sell and dispose of the cargo under their custody. The cargo was detained in the Port Trust for several months, leading to significant financial losses for the petitioner. 2. Liability of the Port Trust to auction the cargo and refund the amount debited from the petitioner: The petitioner claimed that the Port Trust debited Rs. 2,96,861/- and Rs. 6,82,700/- from their account without proper justification. The petitioner sought a direction for the respondents to auction the cargo and realize the ground rent and other charges payable under the MPT Act, and to refund the balance sale proceeds to the petitioner. The respondents did not file any counter affidavit, and the third respondent argued that the relevant Customs Circular was not applicable as the Customs Department had not detained any goods. 3. Application of Sections 42, 59, 60, 61, 62, and 63 of the Major Port Trusts Act, 1963: - Section 42: Grants the Board power to undertake services such as receiving, removing, shifting, transporting, storing, or delivering goods. - Section 59: Deals with the lien of the Board for rates, which has priority over all other liens and claims except for general average and ship owners' lien for freight and other charges. - Section 60: Provides that goods shall remain subject to a lien for freight or other charges payable to the ship-owner if notice is given to the Board. - Section 61: Allows the Board to sell goods by public auction if rates or rent are not paid or lien for freight is not discharged after two months. - Section 62: Allows the Board to dispose of goods not removed from the premises within the specified time limit. - Section 63: Specifies the application of proceeds from the sale of goods, prioritizing expenses of the sale, liens and claims, rates and expenses due to the Board, penalties or fines due to the Central Government, and any other sums due to the Board. 4. Liability of the Port Trust to collect Ground Rent: The court referenced a previous judgment (APL (India) Pvt. Ltd. v. Chairman, Cochin Port Trust and others) which held that the Port Trust can demand Ground Rent only for a maximum period of 75 days as specified by the Tariff Authority for Major Ports (TAMP). The Port Trust's failure to destuff the goods and the consequent demand for Ground Rent beyond the stipulated period was deemed unjustifiable. 5. Petitioner's claim for refund of overcharges: The petitioner sought a refund of the amounts debited from their account, arguing that the charges were illegally levied. According to Section 55 of the MPT Act, a refund of overcharges must be claimed in writing within six months from the date of payment, supported by relevant documents. The petitioner did not furnish any documents in support of their claim for overcharges, nor did they make any formal request to the Board within the stipulated period. Conclusion: The court concluded that the respondents are entitled to collect Ground Rent only for 75 days and must dispose of the goods in accordance with Sections 61 and 62 of the MPT Act. The petitioner did not make any application for the release of goods or refund of charges within the period of limitation. Therefore, the court dismissed the writ petition, stating that it was not a fit case to invoke the jurisdiction under Article 226 of the Constitution of India. The petitioner was advised to file an application before the Port Trust authorities within 15 days, and the authorities were directed to proceed against the responsible party and appropriate the dues according to the priority mentioned under the provisions of law.
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