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Application for relief from bills raised by Port Authorities on a Customs House Clearing Agent. Analysis: The Customs House Clearing Agent applied for relief from bills raised by the Port Authorities totaling over Rs. 11 lac. The bills covered clearances made between April to July 1988, with a change in free storage time from 15 to 7 days in May 1988. The agent cleared goods for certain parties, and a year later, the Port Authorities raised bills for the amount, seeking settlement. The agent argued that their duty ended upon clearance, citing a Supreme Court case. The Port Authorities claimed the agent knew about the excess free storage time and referred to documents where the agent identified as consignees. They relied on the Major Port Trusts Act and by-laws to demand payment, threatening license cancellation and bond forfeiture. The Court noted the mistake by both parties, ruling in favor of the agent based on equitable principles and granting relief from the bills. In conclusion, the Court granted relief to the Customs House Clearing Agent from the bills raised by the Port Authorities, amounting to over Rs. 11 lac. The judgment highlighted the mistake made by both parties and applied equitable principles to provide relief to the agent. The Court emphasized the agent's entitlement to relief due to the exceptional nature of the mistake and ruled in favor of the agent, issuing a rule absolute in terms of the prayers in the writ petition. No costs were awarded, and all parties were instructed to act on a signed copy of the order.
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