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2024 (6) TMI 789 - HC - CustomsIssues: The judgment involves the issues of conditional leave to defend the suit, recovery of detention charges, and applicability of detention-cum-demurrage waiver certificate. Conditional Leave to Defend the Suit: The Writ Petition challenged the Trial Court's order granting conditional leave to the Defendant to defend the suit upon depositing Rs. 18 lakhs. The Plaintiff sought a judgment and decree for payment along with interest. The Defendant argued that the detention charges were justified due to the extended detention period beyond the free detention period. The Court found that an arguable defense was presented by the Defendant and modified the order to grant unconditional leave to defend the suit, deleting certain operative clauses. Recovery of Detention Charges: The Plaintiff filed a Summary Suit seeking a refund of detention charges paid to the Defendant, alleging wrongful charging based on a detention-cum-demurrage waiver certificate issued by Customs Authority. The Defendant claimed the charges were lawful as per the Bill of Lading contract and the Plaintiff utilized the containers beyond the free detention period. The Court noted the dichotomy between Customs Department's actions and contractual obligations, framing an issue on the binding nature of the waiver certificate and lawfulness of the charges collected by the Defendant. Applicability of Detention-Cum-Demurrage Waiver Certificate: The Court considered the detention-cum-demurrage waiver certificate issued by Customs Authority and its impact on the Defendant's recovery of detention charges. It acknowledged the Defendant's role as an agent of the principal shipping line and the contractual obligations regarding container usage. The Court found that the Defendant's demand for depositing Rs. 18 lakhs was unsustainable, leading to the modification of the order to grant unconditional leave to defend the suit. The Defendant was directed to be refunded the deposited amount with interest. Separate Judgement: The Judge modified the impugned order, setting aside the condition of payment of Rs. 18 lakhs while retaining the rest of the order, and directed the expedited hearing of the suit within six months.
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