2020 (9) TMI 811 - HC - Customs

Auction of consignment - order not supplied to petitioner - HELD THAT - On the last date of hearing i.e. 14th September, 2020, Mr. Dayan Krishnan, learned senior counsel for petitioner had sought time to place on record an undertaking by way of an affidavit. To obviate any future controversy, an authorized representative of the petitioner is directed to meet Terminal Manager, ICD- Tughlakabad, on 22nd September, 2020 and finalise the amount due and payable by the petitioner to the respondent for the said nine containers - Till further orders, the petitioner shall make payment in accordance with the paragraphs 4 (a) and (b) of the affidavit dated 14th September, 2020. List on 28th September, 2020.

Summary

Issues:
Challenge to order instructing auction of goods, stay on auction proceedings, payment of dues for containers, scheduling of payments, finalization of amount due, future payment compliance.

Analysis:
The petitioner challenged an order instructing the auction of goods belonging to them, which was not supplied to the petitioner but mentioned in an email. The petitioner sought a direction to prohibit auctioning and stay on auction proceedings until the petition's disposal. The petitioner clarified paying duties and interest only on 9 out of 27 imported containers. Respondent No.1 had initially communicated to postpone the auction for 60 days but later expedited it without notice to the petitioner. The petitioner assured payment of ground rent/demurrage and cited a letter from the Central Board of Indirect Taxes and Customs for benefit.

The Court issued notices to the respondents and stayed the auction scheduled for 31st August 2020. Respondent No.2, Container Corporation of India, stated the petitioner's total dues for nine containers, even after considering COVID-19 related delays. On the next hearing, the petitioner sought time to provide an undertaking for payment. The petitioner's Director filed an affidavit undertaking to pay the determined amounts in installments. An authorized representative was directed to finalize the amount due on 22nd September 2020. The petitioner was instructed to make payments as per the affidavit paragraphs until further orders and the case was listed for 28th September 2020.

The judgment focused on the challenge to the auction order, payment of dues for containers, scheduling of payments, and compliance with future payment obligations. The Court ensured proper communication and undertakings for payment, directing the petitioner to meet to finalize the due amount and comply with scheduled payments. The stay on auction proceedings was maintained until further orders, emphasizing the importance of timely payments and compliance with the Court's directives. The detailed schedule for payments and the involvement of the Container Corporation of India in determining the dues added complexity to the case, necessitating a structured approach to resolve the payment issues effectively.