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TMI Blog2023 (11) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The petitioner had purchased a consignment of imported goods on 02.12.2021 in an auction conducted by the second respondent. The imported goods was not cleared and was lying unclaimed with the first respondent as a custodian appointed under the provisions of the Customs Act, 1962. The second respondent acted as an auctioneer appointed by the Customs Department. 3. The petitioner took delivery of the same from the custody of the first respondent, a Container Freight Station (CFS) under a bona fide belief that the petitioner was indeed purchasing fully refined Paraffin Wax declared in the advertisement. After taking delivery of the goods and after paying the auction amount together with GST components, the petitioner moved the imported go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PRINCIPAL. The bidders/customers shall carry the photo identification card issued by MSTC, without which inspection will not be permitted. In case the bidders/customers send their authorized representative for inspection, they will be permitted subject to their producing the authorization letter and photo identification card (issued by MSTC). The detailed description of all lots including list of spare parts, if any, are available at site. 26. In the event of any disputes or differences in connection with the contract, the decision of the authorized representative of the Principal shall be final and binding on all parties. Any unresolved issue will be referred to arbitration in terms of the provisions of the Arbitration and Conciliation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... premises and that the auction was carried out by the Customs Department with the help of the second respondent and the first respondent had no role to play in the sale. 10. It is further submitted that there is no valid and subsisting arbitration clause which would bind the first respondent to come for arbitration for a dispute. 11. That apart, it is submitted that it is the Customs Department which had auctioned the goods and therefore, dispute if any, has to be resolved by the petitioner with the Customs Department and not from the first respondent. 12. The learned Counsel for the first respondent has further stated that it is the Customs Department which has undertaken the auction of the imported goods in terms of Section 48 of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng agent of the first respondent. 16. I have considered the arguments advanced by the learned Counsel for the petitioner and the learned Counsel for the respondents. 17. Prima facie, the respondents are governed by the terms of Handling of Cargo in Customs Areas Regulations, 2009. In terms of Section 48 of the Customs Act, 1962, if any goods are brought into India from a place outside India and are not cleared for home consumption or warehoused or transhipped within thirty days from the date of the unloading thereof at a customs station or within such further time as the proper officer may allow or if the title to any imported goods is relinquished, such goods may, after notice to the importer and with the permission of the proper officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the first respondent as the Container Freight Station under the Customs Act, 1962. 21. The argument that the contract is insufficiently stamped and therefore in the light of the decision of the Hon'ble Supreme Court in N.N.Global Mercantile Private Limited Vs. Indo Unique Flame Limited and others, 2023 SCC Online SC 495/(2023) 7 SCC 1, the arbitration clause contained, will not apply to the facts of the present case, cannot be countenanced. 22. Considering the above, Court is inclined to pass the following order:- (i) Mrs.Elizabeth Seshadri, Advocate, Enrollment M.S.No.726A/1996, (Cell No.98402 99520) having Office at 15/8, 7th Cross Street, Indira Nagar, Adyar, Chennai - 20, is appointed as an Arbitrator to enter upon reference and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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