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2002 (8) TMI 132 - HC - Customs

Issues Involved:
1. Barred by Limitation
2. Maintainability of the Writ Petition
3. Interpretation of Section 58 of the Major Port Trusts Act
4. Application of Article 113 of the Limitation Act, 1963

Issue-wise Detailed Analysis:

1. Barred by Limitation:
The primary issue was whether the suit filed by the petitioners was barred by limitation. The trial court held that the suit was barred by limitation under Article 113 of the Limitation Act, 1963, as the claim pertained to a period more than three years prior to the institution of the suit on 16-4-1979. The trial court reasoned that the liability for damages ceased by virtue of the confiscation order dated 18-3-1976, making any claim for a period beyond three years from this date barred by limitation.

2. Maintainability of the Writ Petition:
The petitioners approached the High Court directly via a writ petition under Article 227 of the Constitution of India, instead of filing a statutory appeal. The court, while admitting the writ petition, kept the question of its maintainability open. The petitioners argued that the writ petition should be entertained as the trial court's decision was based on a precedent that would likely influence the appellate court similarly. The High Court agreed to decide the question of law raised in the writ petition, emphasizing its substantial importance and recurring nature.

3. Interpretation of Section 58 of the Major Port Trusts Act:
The petitioners contended that the trial court overlooked the scope of Section 58 of the Major Port Trusts Act. According to this section, rates in respect of goods are payable immediately on landing and before removal or shipment. The petitioners argued that the respondents' liability to pay rates arose only when the Customs Authority confiscated the goods, which was communicated to the petitioners on 23-4-1976. Therefore, the right to sue for recovery of the suit claim would arise from this date, making the suit filed on 16-4-1979 within the limitation period.

4. Application of Article 113 of the Limitation Act, 1963:
The High Court examined the applicability of Article 113, which provides a three-year limitation period from the date when the right to sue accrues. The court concluded that the right to sue accrued on the date the petitioners were informed about the confiscation order (23-4-1976). Consequently, the suit filed on 16-4-1979 was within the limitation period. The court supported this interpretation by referencing the Supreme Court's decision in Raja Harish Chandra Raj Singh v. The Dy. Land Acquisition Officer, which emphasized that the limitation period starts from the date of actual or constructive communication of the order.

Conclusion:
The High Court found the trial court's approach incorrect and held that the suit was within the limitation period. The decision of the trial court was set aside, but the petitioners were not permitted to pursue the matter further against the respondents, as the remaining claim was minimal. The petition was disposed of with the clarification that the legal question raised was addressed without allowing further action against the respondents.

 

 

 

 

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