H M BROTHERS PVT LTD Vs. UNION OF INDIA UOI
LAWS(CAL)-1997-2-32
HIGH COURT OF CALCUTTA
Decided on February 18,1997

H.M.BROTHERS (PVT.) LTD. Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

Satya Brata Sinha, J. - (1.) The petitioner in this writ application has, inter alia, prayed for the following reliefs :- "(A) A writ of and/or order and/or direction in the nature of Mandamus commanding the respondents, each one of them, their servants, agents and subordinates to act in accordance with law and grant remission of demurrage charges in respect of ZVL-ZKL Brand Bearings consignment having C.I.F. Value Rs. 1,75,722/- which was lying in the custody of the Calcutta Port Trust at Calcutta Port to the same extent as were given by the Board of Trustees, respondent No. 3 herein in respect of 39 other identical consignments imported by Bombay based importers; (B) A Writ of and/or order and/or direction in the nature of Mandamus do issue commanding the respondents, each one of them, their servants, agents and subordinates and particularly the Respondent No. 4 herein not to include the subject consignment for Sale and/or auction, till the question of remission of demurrage is finally considered by the respondent authorities and/or till the disposal of this application; (C) A writ of and/or order and/or direction in the nature of Certiorari do issue commanding the respondents, each one of them, their servants, agents and subordinates to certify and transmit all records relating to the decision to refuse granting remission of demurrage in respect of the consignment imported by the petitioners in terms of Circular dated 1st August, 1995, being Annexure 'G' herein."
(2.) The fact of the matter is not in dispute. On 24-1-1992, the Ministry of Surface Transport laid down guidelines as regards waiver of demurrage charges payable to the Calcutta Port Trust. On 16-11-1992 a vessel 'Andra Mache' arrived at Calcutta Port. With the consignment of petitioner with two containers, consignments of several other persons also were brought by the said ship. The containers carrying Cargo were stuffed like the consignment of other consignees. On or about 17-5-1993 the Customs authorities allegedly informed the petitioners and other importers similarly associated that 'bearings' exported by them would be assessed on Invoice Value. The petitioners submitted Bill of Entry in terms of Section 59 of the Customs Act allegedly when 'dispute valuation' was over on 26-7-1994. On 12-9-1994 the petitioners made a representation before the Calcutta Port Trust authorities for remission of demurrage whereafter a reminder was also sent on 9-1-1995. By a letter dated 24-1-1995 the Port Trust authorities considered the representation and asked for payment of demurrage at 150% of GIF Value or 50% of demurrage accrued up to the date of delivery provided goods were cleared by 28-2-1995. However, in the meantime the Ministry of Surface Transport issued another circular on the guideline dated 24-1-1992 which reads thus : "In all the cases mentioned in para 2(i) above or where the Board of Trustees have reasons to believe that the detention of goods is not due to the fault of the importer/consignee may consider such cases and give remission ordinarily up to 80% of the demurrage accrued or release the goods on payment of all amount equivalent to the GIF value of the goods, whichever amount is higher."
(3.) The said instructions were issued in terms of Section 111 of the Major Port Trust Act and thus necessary resolution was required to be passed by the Calcutta Port Trust adopting the same. On 30-8-1995 a resolution was passed by the Trustees of the Calcutta Port Trust in a meeting, in terms whereof it was resolved :- "The Trustees thereafter considered the cases in respect of which applications had already been received from the importers concerned for grant of remission of demurrage charges according to the new guidelines details of which were furnished in Appendix-IV. The views of the FA & CAO, CPT and Manager, Finance, HDC were also considered by the Trustees. They agreed after discussion to grant a one time concession in respect of the cases placed before them by allowing delivery of the cargo on recovery of 20% demurrage charges actually accrued up to the date of delivery or re-assessed GIF value finally accepted by the Customs, whichever would be more, provided the consignments were cleared within a period of one month. Resolved after discussion to adopt the guidelines forwarded by the Ministry wide their letter dated 24th January, 1992 together with subsequent modifications vide letter dated 1st August, 1992, w.e.f. 1st August, 1995, in supersession of the previous guidelines adopted vide Resolution No. 30, dated 27th February, 1976 and with the stipulation that these guidelines would not be treated as instructions under Section 111 of the MPT Act. Resolved further that the consignments placed for consideration in the meeting be granted a one-time concession in accordance with the new guidelines and these consignments be allowed delivery on recovery of 20% of demurrage charges actually accrued up to the date of delivery or re-assessed GIF value of the consignments finally accepted by the Customs, whichever would be more, provided the consignments were cleared within a period of one month.";


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