Metal Distributors Ltd. vs Union of India

Kurdukar, J.—Heard Counsel for the parties and in our opinion, at this state it is not necessary to deal with the contentions raised in this writ petition.

This writ petition is an off shoot relating to a claim of grant of full remission of demurrage charges in respect of the period for which the Detention Certificates being Exhibits D and E to the petition were issued by Respondents Nos. 2 and 3.

2A. On earlier occasion, the petitioners had filed Writ Petition No. 549 of 1982 challenging the legality and correctness of the order dated 23rd January 1982, passed by the Collector of Customs, Bombay, confiscating the imported goods u/s 111(d) of the Customs Act, 1962, but allowing an opportunity to the importer to redeem the same on payment of fine of Rs. 75,000/-. This writ petition was heard by the Division Bench to which one of us (Savant, J.) was a party. The Division Bench vide its order dated 1st August 1991, without going into rival contentions directed the petitioners to file an appeal before the Tribunal. Mr. Mehta, learned Counsel appearing for the petitioners stated before us that the petitioners have filed the appeal before the Tribunal and as per the directions contained in the order of this Court dated 1st August 1991, the same will be disposed of shortly. Thus, result is that the main contentions as regards correctness of the order dated 23rd January 1982 passed by the Collector of Customs is sub-judice before the Tribunal.

In the meantime, the 1st respondent - the Bombay Port Trust refused to grant the benefit of the detention certificates issued by Respondent No. 2 in pursuance of the order of this Court dated 23rd March 1982 in Writ Petition No. 549 of 1982 filed by the petitioners. It is this denial of the benefit of full remission of demurrage charges for the period for which detention certificates are at Exh. D and E to the petition, is the subject-matter of challenging in this writ petition.

3A. The petitioners have also taken out Chamber Summons No. 174 of 1991 seeking leave to amend the petition in terms of Schedules I, II and III. The petitioners have also annexed to this Chamber Summons extracts from the proceedings of the meeting of the Remission Committee held on 17th May 1982 (Ex. K.). The above extract shows that in the meeting of the Remission Committee held on 17th May 1982, petitioners claim for remission in demurrage charges came to be rejected.

Since the Tribunal is seized of the matter on the merits of the order dated 23rd January 1982 passed by the Collector of Customs, we are of the opinion that we need not entertain this petition at this stage. Liability to pay the demurrage charges will depend upon the final outcome of the order that will be passed by the Tribunal where appeal is pending. We are, therefore, of the opinion that this writ petition is premature and need not be entertained at this stage.

Mr. Chinoy, learned Counsel appearing for the 1st respondent-B. P. T. fairly stated that in the event if the petitioners succeed before the Tribunal and apply for remission in demurrage charges, the claim of the petitioners will be considered on merits in accordance with law. We hope that notwithstanding the minutes of the meeting of the Remission Committee held on 17th May 1982 (Ex. K) the 1st Respondent B. P. T. will consider the application of the petitioner, in the event they succeed in the Tribunal de novo on merits without being influenced by the said minutes and will pass appropriate orders in accordance with law.

Mr. Mehta then submitted that assuming that the petitioners fail before the Tribunal yet, they can agitate the issue on merits and claim exemption of demurrage before the B. P. T. This issue is also kept open.

Petitioners through their Counsel undertake to this Court that they will keep the bank guarantee given to this Court, pursuant to the order dated 23rd March 1982 in Writ Petition No. 549 of 1982, alive until expiry of period of six months from the date of order of the Tribunal. Petitioners through their Counsel further undertake to this Court that they shall move the 1st Respondent - B. P. T. with proper application within two months from the date of order in case they want to seek any relief as regards demurrage charges undertaking accepted. If such an application is made by the petitioners, the 1st Respondent- B. P. T. to dispose of the same within six weeks from the date of receipt of the application in accordance with law.

Writ Petition No. 799 of 1982 is disposed of in the above terms. In view of this order, no separate order on Chamber Summons No. 174/91 is called for. All contentions taken in the Chamber Summons are kept open. No order as to costs.

Copy of this order, if applied for, to be furnished within two weeks.