2023 (1) TMI 1001 - HC - Customs

Auction of goods - unpaid seller which had shipped Aluminium Scrap through shipping line - Seeking to permit the re-export of import container arrived at ICD Sabarmati as due to unavoidable circumstances - HELD THAT - Considering the issue of right of the unpaid seller, we firstly need to direct the impleadment of the buyer Ghanshyan Metal Udyog, Survey No. 36/1, Kuha Road, Singarva, Ahmedabad 382430, Gujarat, India. Let the amendment be carried out in the cause title. Issue Notice to the respondents making returnable on 20th January, 2023.

Summary

Issues involved:
Unpaid seller's right to reclaim goods, auction of unclaimed cargo, maintainability of petition by unpaid seller, right of the buyer to claim the goods.

Unpaid seller's right to reclaim goods:
The petitioner, an unpaid seller, shipped Aluminium Scrap to India, sold to M/s. Ghanshyam Metal Udyog. The Indian importer did not clear the goods, prompting the petitioner to seek to take back the goods. The petitioner filed a petition requesting a writ of mandamus to quash the letter by respondent No.2 and to allow re-export of the unclaimed cargo. The petitioner claimed a contract with Ghanshyam Metal Udyog, seeking a no objection certificate for re-export. The petitioner emphasized the sale contract and the uncleared consignment, urging the court to consider their right to reclaim the goods.

Auction of unclaimed cargo:
Respondent No.4 initiated an auction of the goods due to non-clearance by the consignee. The respondent argued for the right to auction as no bill of entry was produced and the goods remained unclaimed beyond the prescribed time limit. The petitioner sought a writ to quash the auction notice and to stay its operations pending further court proceedings. The court directed the impleadment of the buyer, Ghanshyam Metal Udyog, and issued notices to the respondents, including a returnable date for further proceedings.

Maintainability of petition by unpaid seller:
The customs department raised objections regarding the maintainability of the petition by the unpaid seller of foreign origin. The petitioner's advocate relied on previous court decisions to support their case. The court heard arguments from both sides, emphasizing the issue of the unpaid seller's right in the matter. The court directed the amendment of the cause title and issued notices to the respondents for future hearings.

Right of the buyer to claim the goods:
The buyer, Ghanshyam Metal Udyog, was involved in the contract with the petitioner for the purchase of Aluminium Scrap. The consignment remained uncleared by the buyer, leading to the petitioner's request for re-export and reclaiming the goods. The court considered the involvement of the buyer in the proceedings, directing their impleadment and issuing notices for further proceedings to determine the rights of all parties involved.

This detailed analysis covers the key issues addressed in the judgment, highlighting the legal arguments, court directions, and the rights of the parties involved in the dispute over the unpaid goods and the auction process.