2012 (10) TMI 194 - HC - Customs

Loss of Bill of lading Held that - Petitioner has apparently advertised the Loss of the bills of lading in the issue of The Statesman published on July 15, 2010. According to the petitioner, there has not yet been any response. The respondent No. 4 being the shipping agent apprehends that the original bills of lading might have been endorsed and the shipping agent and/or its Principal may be liable for compensating the endorsee of the bills of lading - goods covered by the two consignments shall be released subject to clearance of all freight, demurrage and other charges as also the requisite to customs duty as assessed on the said goods

Summary

Issues:
Import of agro chemicals, loss of original bill of lading, issuance of new bills of lading, disputes over bills of lading, release of goods to petitioner, bank guarantee requirement, furnishing of bonds/undertakings, renewal of bank guarantee, clearance of charges and customs duty.

Analysis:
The petitioner imported a consignment of agro chemicals under a specific Bill of Entry and paid the Customs duty assessed. However, it is alleged that the original bill of lading, along with other documents, has been lost. Subsequently, two new bills of lading were issued for the lost bills, and delivery orders were provided. Disputes arose regarding the lost bills of lading, leading to concerns that the shipping agent or its Principal might be liable for compensating the endorsee of the bills. The petitioner advertised the loss, but no response was received.

After hearing the parties, the Court decided to direct the release of the goods covered by the two consignments to the petitioner. However, this release was subject to the condition that the petitioner furnishes a bank guarantee securing the value of the goods from the two consignments. The bank guarantee had to be renewed for a year, and the petitioner was also required to provide bonds or undertakings to protect the shipping agent and/or its Principal against potential claims from the endorsee of the lost bills of lading.

It was further specified that the goods would only be released after clearing all freight, demurrage, and other charges, in addition to paying the customs duty assessed on the goods. The Court disposed of the writ application accordingly, instructing all parties to act based on a signed copy of the order provided to them, subject to the usual undertakings.