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2021 (2) TMI 393 - SC - Indian LawsLevy of Charges - Port Trust on a consignment of logs lying within the docks - HELD THAT:- The grievance of the Port Trust against the order of the Division Bench is legitimate. The Port Trust has a statutory lien on the goods, for unpaid charges under the provisions of Sections 58 and 59 of the Act. The decisions of this Court in International Airports Authority of India v. Grand Slam International [1995 (2) TMI 70 - SUPREME COURT] and in Om Shankar Biyani v. Board of Trustees of Port of Kolkata [2002 (2) TMI 104 - SUPREME COURT] have authoritatively recognized this principle. The Port Trust was in appeal against the order of the Single Judge directing the release of half the cargo against a payment of ₹ 25 lakhs. The Division Bench in appeal directed the release of the entire cargo against a payment of ₹ 50 lakhs, placing the Port Trust in a position which is worse off than under the interim order. We are hence constrained to interfere with the order of the Division Bench, though it arises in interlocutory proceedings because of the evident error. The Division Bench has ignored the statute, the binding precedents of this Court and acted contrary to judicial norms. Instead of remanding the proceedings back to the Division Bench for reconsideration of the appeal and since the writ petition has been directed to be disposed of, this Court has heard the rival submissions on an appropriate interim arrangement. Mr. Dave submitted that the consignment of goods may be allowed to be cleared, since the goods were imported for business, subject to the first and second respondents being put on terms. Mr. Rohatgi submitted that if the entire consignment is sought to be cleared, this has to be against the payment of port charges and dues for the entire consignment. There is merit in the submission of the Port Trust. The Port Trust cannot be relegated to pursue the importer for the recovery of its dues after the goods have been cleared and removed from the dock premises. The charges payable to the Port Trust have to be duly paid before clearance in view of the statutory lien over the goods. The error of the High Court was precisely because the interim directions fail to secure the interest and lien of the Port Trust. The issue of whether the first and second respondents are entitled to any remission or waiver in terms of the Circulars of the Ministry of Shipping will be decided in the course of the hearing of the writ petition. If they succeed, consequential directions for refund with interest can follow. It is directed that the first and second respondents shall pay to the Port Trust an amount of ₹ 1.35 crores as a condition precedent for the release of the goods. This shall be subject to the first and second respondents complying with all other formalities, including obtaining customs clearance. In the event that the first and second respondents are held entitled to any refund under the final directions of the High Court after the petition is heard, the High Court would be at liberty to direct the refund of the excess amount collected, if any, together with interest. Appeal allowed - decided in favor of appellant.
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