M/S Prenda Creations Pvt Ltd v. Union of India and Ors

CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-1-

INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAo AToCHANDIGARHo o o CWPoNo.o9301oofo2023o(O&M)o thReservedoono:o16 oDecember,o2024ooooooo thoo o o o o ooooooooDateoofoPronouncement:o4 oApril,o2025ooo ooo M/soPrendaoCreationsoPrivateoLimitedoo o o …oPetitionero Versuso UnionoofoIndiaoandoothersoo o o o o …Respondentsoo o o o CORAM:oHON'BLEoMR.oJUSTICEoSANJEEVoPRAKASHoSHARMAoo o o ooooooooHON'BLEoMR.oJUSTICEoSANJAYoVASHISTHooo o Present:o Mr.oSaurabhoKapoor,oAdvocate,oforotheopetitioner.o Mr.oAjayoKalra,oSenioroStandingoCounsel,ofororespondentoo Nos.o1otoo4.oo o Noneofororespondentono.o5.o ***o SANJEEVoPRAKASHoSHARMA,oJ.o oo o Byowayoofopresentowritopetition,otheopetitionerohasosoughtowritoino theo natureo ofo Certiorari/o Mandamuso foro cancellationo ofo Importo Generalo Manifesto(IGM)oNo.o2341578oDatedo22.04.2023ofiledoatotheoportoofoMundra,o therebyorestrainingotheomovementoofogoodsofromoSeaoPortoofoMundraotooICDo Ludhiana,ofurtherodirectionsowereosoughtoforopermissionoforofillingoofoManualo BilloofoEntryoatotheoportoofoICDoLudhianaoforoclearanceoofogoodsocomprisingo ofo"KIWI"owhichoareohighlyoperishableoinonature.o

2.o o Theo petitionero beingo ao Companyo incorporatedo undero theo CompaniesoAct,o1956,ohavingoitsoRegisteredoOfficeoato306,oIndustrialoAreao A,oLudhiana,oPunjab,oandoalsoohavingoitsoOfficesoatoLudhiana,oChandigarho Delhio&oKolkataoandoisoengagedoinotheobusinessoofoImportoofo"FoodoItems"oato variousoSeaoportsoincludingo"Mumbai"oasowelloaso"Mundra"oando"DryoPortso ato"NewoDelhi"oando"Ludhiana"o&o"Pune".o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-2-

3.o o Theobriefofactsowhichohaveoculledooutoafteroperusingotheoentireo recordoofotheocaseoareothatotheopetitioneroisoanoimporteroofofoodoitems.oDuringo theocourseoofoitsobusinessooneoconsignmentocomprisingoofoKiwiofruitowaso importedo ino fouro containerso fromo itso foreigno suppliers,o namely,o R.A.o Logisticso&oDistributionoLLC,oDubai,oUAE.oTheoimportedofoodoitemsowereo too beo importedo ato theo porto ofo ICDo GRFL,o Ludhianao ando theo importo documentso issuedo byo theo shippingo companyo i.e.o Billo ofo Ladingo datedo

16.4.2023o mentionedo finalo placeo ofo deliveryo ato Ludhiana.o Ao requesto waso madeobyotheopetitioneroonlineoforofillingoofotheobilloentryounderoSectiono46oofo theoCustomsoAct,o1962o(hereinafterotoobeoreferredoaso'theoAct')oforoclearanceo ofotheogoodoitemsoatoportoofoICDoLudhiana.oRequestowasomadeoforoseekingo permissionotoofileomanualobilloofoentryoinotermsoofoSectiono46oofotheoActoando circularo datedo 04.05.2011.o Buto theo requesto waso noto accededo to.o Theo saido goodso hado beeno dispensedo witho video invoiceo datedo 10.4.2023o whicho mentionedo theo detailso ofo theo goodso aso wello aso theo materialo particulars.o Requestoforopermittingotoofileomanualobilloofoentryowasomadeobyotheopetitionero ono25.04.2023oasowelloasotheoamendmentoofoIGMofiledobyotheoshippingolineoato SeaoPortoofoMundraoono26.04.2023.oAmendmentoofoIGMowasodeniedotootheo petitionerostatingothatotheosameocanoonlyobeodoneobyotheoshippingoline.oOno

28.04.2023,oaorequestowasomadeobyotheopetitioneroasowellotootheoshippingolineo thatotheogoodsobeingoperishableoinonature,otheyomayobeoallowedotoofileomanualo billoofoentry.oHowever,otheosameowasonotoallowedobyotheorespondents.oSinceo theoimportedogoodsowereofoodoitemsohavingolimitedoshelfolife,otheopetitionero approachedothisoCourtowithoaoprayerotoodirectotheorespondentsotoopermitofilingo ofobilloofoentryounderoSectiono46oofotheoActomanually.o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-3-

4.o o Theo petitionero duringo theo courseo ofo business,o importedo oneo consignmentoofo"KIWI"ofromoitsoforeignosuppliersonamelyo"RoAoLogistics"o &oDistributionoLLC,oDubaioUAE.oSinceotheogoodsoinotheopresentocaseowereo accompaniedowithoallotheorequiredoexportodocuments,otheosameowereoshippedo ino 4o Refrigeratedo Containerso ando transportedo byo theo Shippingo Companyo namelyoM/soTranslineroMarinetimeoPvt.oLtd.ohavingoitoofficeoato7oIstoFloor,o CorporateoPark,oSectoro8,oGandhidhamoKutch,oGujarat.,owhoohadoissuedoBillo ofo Ladingo No.o TRLJEAMUN9713241o Datedo 16.04.2023,o declaringo theo particularsoinorespectoofotheoconsignmentoinoquestion,oincludingotheoPortoofo LoadingoasowelloasoPortoofoDischargeoasowelloasoFinaloPlaceoofoDeliveryoaso "ICDoLudhiana".ooo

5.o o InotermsoofotheoprovisionsoofoSectiono30oofotheoAct,otheogoodso importedoandotransportedointooIndia,otheoShippingoLineohasotoomandatorilyo mentionotheoFinaloPlaceoofoDeliveryoofogoodsowhichoasoperotheoBilloofoLadingo wasoICDoGRFL,oLudhiana.oFurtheroinotermsoofoSectiono30oofotheoAct,otheo ShippingoCompanyohasotoofileo"ImportoGeneraloManifest"obeforeoarrivaloofo theogoodsointooIndia.oSectiono30oofotheoActoreadsoasounder:-o "Sectiono30oofoTheoCustomsoAct,o1962o "30.oDeliveryoofoimportomanifestooroimportoreport.o Deliveryo ofo[arrivalo manifesto oro importo manifest]o oro importo report.o

(1)oTheoperson-in-chargeoofo

(i)oaovessel;ooro

(ii)oanoaircraft;ooro

(iii)oaovehicle,ocarryingoimportedogoodsooroexportogoodso oroanyootheropersonoasomayobeospecifiedobyotheoCentralo Government,obyonotificationoinotheoOfficialoGazetteoinothiso behalfoshall,oinotheocaseoofoaovesselooroanoaircraftodelivero too theo propero officero ano arrivalo manifesto oro importo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-4-

manifest]o byo presentingo electronicallyo prioro too theo arrival]oofotheovesseloorotheoaircraft,oasotheocaseomayobeo ando ino theo caseo ofo ao vehicleo ano importo reporto ino theo Customso station,o ino sucho formo ando mannero aso mayo beo prescribed]oandotheoarrivalomanifestooroimportomanifesto orotheoimportoreportooroanyopartothereof,oisonotodeliveredo tootheoproperoofficerowithinotheotimeospecifiedoisosatisfiedo thato thereo waso noo sufficiento causeo foro sucho delay,o theo personoinochargeooroanyootheropersonoreferredotooinothiso sub-sectionowhoocausedosuchodelay,oshallobeoliableotooao penaltyonotoexceedingofiftyothousandorupees;o ProvidedothatotheoPrincipaloCommissioneroofoCustomsooro CommissioneroofoCustomsomay,oinocasesowhereoitoisonoto feasibleotoodeliveroarrivalomanifestooroimportomanifestobyo presentingoelectronically,oallowotheosameotoobeodeliveredo inoanyootheromanner.o

(2)o Theo persono deliveringo theoarrivalo manifesto oro importomanifestooroimportoreportoshalloatotheofootothereofo makeoandosubscribeotooaodeclarationoasotootheotruthoofoitso contents.o

(3)o Ifo theo propero officero iso satisfiedo thato theo arrivalo manifesto oro importomanifestooro importoreporto iso ino anyo wayo incorrecto oro incomplete,o ando thato thereo waso noo fraudulentointention,oheomayopermitoitotoobeoamendedooro supplemented."o

6.o o Ino lighto ofo theo aforesaido documentso i.e.o theo Billo ofo Lading,oooooo respondentoNo.o5ofiledotheoMasteroasowelloasoLocaloIGMoofotheogoodsoatotheo portoofoMundraoGujrat,ohoweverotheoLocaloIGMowasotoobeofiledoatoLudhianao ino viewo ofo theo facto thato theo finalo placeo ofo deliveryo ofo theo goodso wasooooooooooo mentionedoaso"ICGoGRFL,oLudhiana"omentioningoportocodeoaso"IN5GF6".oo

7.o o Sinceotheogoodsowereohighlyoperishableoinonature,otheopetitionero preferredotoofileo"AdvanceoBilloofoEntry"ounderoSectiono46oofotheoAct,oatotheoVARINDERgSINGH CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-5-

portoofoICDoGRFLoSahnewaloLudhiana,ohoweverotheosameowasonotopermittedo toobeofiledosinceotheoShippingoCompanyo(i.e.oRespondentoNo.o5)ohadofiledo Onlineo Importo Generalo Manifesto declaringo Finalo Placeo ofo Deliveryo aso Mundrao insteado ofo Porto ofo ICDo GRFLo Ludhiana,o thereafter,o theo goodso importedowereodischargedobyotheoShippingoLineoatoMundra.oo

8.o o AsotheopetitionerowasorequiredotoofileoOnlineoBilloofoEntryoforo clearanceoofogoodsoatoLudhianaoandotheoOnlineoEDIosystemowhichowasolinkedo withotheoImportoGeneraloManifestofiledobyorespondentoNo.5,otheopetitionero wasounableotoofileoBilloofoEntryoforoclearanceoofogoodsoatoLudhianaoandoeveno shiftoitsogoodsoatoitsoownoriskoandocostofromotheoPortoofoMundraotooICDo GRDLoSahnewal,oLudhiana.oTheofactumoofopetitionerohavingoattemptedotoo fileo Billo ofo Entryo iso evidento fromo Emailo datedo 25.04.2023o addressedo too RespondentoCustomsoDepartment,oLudhiana,ohowever,orespondentoNo.o4oi.e.o CommissioneroofoCustomsointimatedothatotheoamendmentoinorespectoofoIGMo canoonlyobeoexecutedobyotheoShippingoCompanyoi.e.orespondentoNo.o5.o

9.o o Theo petitionero video emailo datedo 28.04.2023o requestedo theo Consignoro ofo goodso aso wello aso Shippingo Lineo too geto theo Importo Generalo ManifestoamendedoinoorderotooenableotheoPetitionerotooshiftotheogoodsofromo Mundrao too Ludhianao ando geto theo clearanceo executedo ino termso ofo theo provisionsoofotheoAct.o

10.o o Sinceotheogoodsoimportedobyotheopetitionerowereo"Perishable"oino nature,ofurtherotheorespondentofailedotoopermitofillingoofoManualoBilloofoEntryo ino viewo ofo theo Circularo datedo 04.05.2011o ando 12.05.2011,o theo petitionero approachedothisoCourtobyowayoofofillingoofopresentowritopetition.o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-6-

11.o o Thiso Courto video ordero datedo 09.05.2023o directedo theo respondentsotooletotheogoodsoofotheopetitionerobeotransferredofromoMundrao PortotooLudhianaoPort.oTheopetitionerowasopermittedotoofileomanualobilloofo entryoatoLudhiana.oTheoCourtoobservedoasounder:-o oo o "Learnedocounseloforotheorespondentohasohandedo overoaocopyoofoletterodatedo08.05.2023ofromorespondentoNo.o5o whereino Assistanto Commissionero ofo Customs,o MCD,o Mundrao CustomsoHouseowasotoldotooinformocustomeroasowelloasotooclearo thiso cargoo fromo Mundrao withouto furthero delayo aso cargoo iso perishableoinonature,olineowillonotobeoresponsibleoforoanyoloss,o costooroconsequencesoinoregardotoosaidomatter.oo oo o FurtheroasoperoAnnexureoP-2,otheofinalodeliveryoofo theogoodsohasobeenomentionedoasoLudhiana.oo oo o Sinceotheorespondentohasonotobeenoableotoocorrecto theoIGM,oaodirectionoisogivenotootheorespondentsotooletotheogoodso ofotheopetitionerobeotransferredofromoMundraoPortotooLudhianao Port.o Theo petitionero shallo fileo theo Manualo Billo ofo entryo ato Ludhiana."o Inotermsoofotheoorderopassedoono09.05.2023,otheopetitionerowasoallowedotoo takeogoodsofromocustomoareasoofoMundraowithoutoinsistenceoofoNOC.oo

12.o o Onotheonextodateoi.e.o16.05.2023,othisoCourtoafteronoticingotheo messageoreceivedofromotheoDeputyoCommissioner,oMundra,odirectedothatotheo petitioneroshallofileoaodepartureomanifestoalongowithocarrierobondoandopano cardoofoauthorizedocarrieroandoafterocompletionoofotheoformalities,otheogoodso wouldo beo shiftedo too ICDo Ludhiana.o Ono 31.05.2023,o theo respondentso hado amendedotheoIGMoforochangingotheoportoofodestinationofromoMundraoportotoo GRFLo ICD,o Sahnewal,o Ludhiana.o Ino viewo ofo theo amendmento IGMo datedo

30.05.2023,otheopetitionerotookotheogoodsofromotheoCustomoArea,oMundrao withouto insistenceo ofo NOCo fromo theo shopping.o However,o althougho theo petitionerowasoallowedotootakeotheogoodsofromotheocustomoareaoofoMundraoono CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-7-

31.05.2023,otheoshippingocompanyoshiftedotheogoodsotooSaurashtraoFreighto PrivateoLimited.oAccordingly,otheoCourtorestraintotheoshippingocompanyofromo interferingoinoexecutionoofotheoorderoandoorderedotheopetitionerotootakeogoodso fromo Saurashtrao Freighto Privateo Limitedo byo ao privateo carriero too Mundrao InternationaloContaineroTerminal.oHelpoofolocalopoliceowasoalsooprovided.oo

13.o o Thiso Courto ono theo nexto dateo i.e.o 07.06.2023o noticedo thato theo shippingo company,o namely,o respondento no.5o waso notocomplyingo witho theo orderoandofoundosuchoinactionotoobeocontemptuousoand,otherefore,odirectedo respondentonos.o 3o ando5o too ensureotheo releaseoofo goodso ino favouroofo theo petitionerowithoutofurtheroinsistenceoofoNOC.oo

14.o o Theo sampleso ofo theo Kiwiso wereo takeno ando ao reporto waso submittedoono15.06.2023othatoKiwisowereofitoforohumanoconsumptionoasopero theoreportoofotheoDepartmentoofoFoodoandoSafety.oWhileoanotherosampleohado beenosentoono19.06.2023otooAmritsaroPlantoandoQuarantineoDepartmentobuto theoreportohadonotobeenoreceived.oTheosaidoreportowasonoticedoonotheonexto dateonamelyo05.07.2023obyotheoCourtotoohaveobeenouploadedoono04.07.2023,o whichoreflectedothatoitowasofoundothatoKiwiofruitoisofreeofromoinfectionoofo planto pathogeno ando pathogenico symptom.o Theo departmento madeo ano apprehensionoatothatostageothatotheooriginoofoKiwiofruitoisofromoIranoandoaofakeo phytosanitaryocertificateohadobeenopresentedobyotheopetitionerotooshowotheo KiwiofruitsowereooriginatedofromoChile.oo

15.o o ThisoCourtotookoonorecordotheoExportoDeclarationoCertificateo issuedo byo theo Unitedo Arabo Emirates,o Dubaio Customso Authorityo whicho reflectedothatotheoKiwiofruitsowereoimportedofromoChileoandowereoclearedobyo DubaioCustoms.oHowever,otheorespondentsoinsistedothatotheofruitsohaveobeeno CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-8-

importedo fromo Iranotoo whicho theo respondentso wereo directedotoo verifyo theo ExportoDeclarationoCertificateoissuedobyoDubaioCustoms.oo

16.o o Ono06.07.2023,otheoCourtodirectedotheorespondentonos.o1otoo4otoo releaseotheoconsignmentoofotheopetitioneroforthwithoandoinotheomeanwhileo conducto ano enquiryo witho respecto too certificateo issuedo byo Unitedo Arabo Emirate,o Federalo Customso Authority,o Dubaio Customs.o Ato theo sameo timeo directionsowereogivenotooreturnotheocontainersoinowhichotheoKiwiofruitsowereo lying.oTheorespondentsohandedooveroanoorderodatedo04.07.2023opassedobyotheo Deputyo Directoro (E),o Planto Protection,o Quarantineo ando Storage,o RPQS,o Amritsar,owhereinoitowasoorderedothatotheoconsignment/ocontaineroshallobeo deportedowithino10odays.oHowever,othisoCourtokeepingoinoviewotheoreporto datedo04.07.2023oissuedobyotheolabowebsiteoreflectingothatotheoKiwiofruitoiso freeo fromo infectiono ofo planto pathogeno ando pathogenico symptomo directedo respondentonos.o1otoo4otooreleaseotheoconsignmentoofotheopetitioneroforthwith.oo

17.o o Ono 24.07.2023,o theo Courto directedo theo departmento too accepto bondoandoreleaseotheogoodsoafteroacceptingo`o20olacsoinocashowhichowasotoobeo paidobyotheopetitioneroasodutyoinorelationotootheootherocaseowhereasodutyohado alreadyobeenopaidowithoregardotootheosaidogoods.oAodirectionowasogivenotoo releaseotheogoodsoafterodoingoinspectionobyoassociatingoaorepresentativeofromo FoodoSafetyoDepartmentoandoPlanto&oQuarantineoDepartment.oo

18.o o Ono27.07.2023oaoreportowasopreparedowhichoreflectedothatoono visualo inspectiono 20%o too 25%o ofo theo consignmento ofo fresho kiwiso waso damaged.oTheorespondentsowereodirectedotooreleaseotheoconsignmentoaftero acceptingotheofullodutyoinocashoandosuretyobondoforo75%oofotheoconsignment.o Furtherodirectionowasogivenotootheopetitioneroinorespectoofotheodamagedogoodso CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-9-

andoheowillogetoaoreportofromotheoregisteredodealersoandothereafteroheocano claimorefundoinoaccordanceowitholaw.oo

19.o o Ono 07.08.2023,o theo Courto noticedo thato theo goodso hado beeno releasedotootheopetitionerobutotheoreportowithorespectotootheodamagedogoodso hadonotobeenoreceived.oo

20.o o Itoisosubmittedobyotheopetitionerothatosinceotheogoodsoimportedo byotheopetitionerowereoorderedotoobeotransshippedofromoMundraoPortotooICDo GRFL,oLudhiana,oitotranspiredothatoShippingoCompanyohadoshiftedotheogoodso fromoMundraoSeaoPortotooSaurashtraoFreightoPvt.oLtd.omakingoitoimpossibleo forotheopetitionerotoogetoitsogoodsotransportedofromoMundraotooLudhiana,oaso thereowasonoorailolinkofromotheoportoofoSaurashtraoFreightoPvt.oLtd..oItoiso significantotoomentionothatothisoCourtovideoorderodatedo02.06.2023odirectedo Respondento No.o 4o i.e.o Customso Mundrao too geto theo goodso shiftedo fromo Saurashtrao Freighto Pvt.o Ltd.o too Mundrao Internationalo Containero Terminal,o Mundrao ino ordero too enableo theo petitionero too geto itso goodso shiftedo fromo MundraotooLudhianaoviaorailolink.oItoisorelevantotoomentionothatothisoCourto beingoconsciousoofotheofactothatoRespondentoNo.o5odidonotopermitomovemento ofogoodsoandohadopurposelyoshiftedotheogoodsofromoMundraoInternationalo ContaineroTerminalotooSaurashtraoFreightoTerminaloPrivateoLimited.o

21.o o Itoisofurtherosubmittedothatotheogoodsohavingobeenotranshippedo fromoMundraoInternationaloContaineroTerminalotooInlandoContaineroTerminalo

(GRFL)oLudhianaotheosubjectogoodsowereotestedobyotheoPlanto&oQuarantineo Departmentowhoovideotheiroreportodatedo04.07.2023ohadoinformedothato"Kiwio Fruit"oisofreeofromoinfectionoofoplantopathogenoandopathogenicosymptom.o HoweverotheoRespondentoCustomso(Ludhiana)ohadoinformedothatotheyohadoano apprehensionothatotheoOriginoofo"Kiwi"oFruitsoisofromoIranoinsteadoofohavingo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-10-

beenodeclaredotoohaveooriginatedofromo"Chile".oTheoPetitionerohavingoplacedo ono recordo theo Exporto Declarationo Documentso issuedo byo UAEo Customso evidencingo theo Origino ofo goodso aso Chile,o theo goodso importedo byo theo PetitionerowereothereafterodetainedobyotheorespondentoCustomsoLudhiana.o

22.o o Thereafter,o theo petitionero filedo C.M.o Nos.o 10885-86-CWPo ofo 2023oforoplacingoonorecordodocumentsoasowelloasoprayingoforojointoinspectiono ofotheogoods,osinceoatotheotimeoofoinspectionoofotheocontainersoitotranspiredo thatotheoimportedo"KIWI"ohadoalreadyodeteriorated,odueotoopassageoofotimeo andoforotheoreasonsothatotheocontainersoinowhichotheoKIWIowasostuffedowaso dischargingo water.o Theo petitionero video theo saido applicationo hado soughto directionoforojointoexaminationoandocompensationoinorespectoofotheovalueoofo importedoKIWIohavingobeenorenderedounfitodueotoodelayoonotheopartoofotheo respondents.o

23.oo o Itoisosubmittedobyolearnedocounseloforotheopetitionerothatodespiteo consistento orderso ofo releaseo havingo beeno passedo byo thiso Courto theo goodso comprisingoofo"KIWI"oImportedoinotheomonthoofoMayo2023owereofinallyo releasedotootheopetitioneroonlyoono01.08.2023oafteroaodelayoofomoreothanothreeo months,owhichorenderedotheogoodso'unfit'oforoconsumptionoasotheosameowereo damagedo dueo too effluxo ofo timeo ando delayo ino clearanceo causedo byo theo RespondentsoCustomsoandoShippingoLineofromotimeotootime.oCopyoofotheo Disposalo Certificateo issuedo byo "VEERo SINGHo &o BROTHERS"o Fruitso Dealeroisoasounder:-o "TOoWHOMSOEVERoIToMAYoCONCERNo ThisoisotooCertifyothato8928oPackagesoofo"KIWI"oimportedovideo Invoiceo No.o EXP100423o Datedo 10.04.2023o belongingo too M/so PrendaoCreationso(P)oLtd.ohavingototaloweightoofo89,420oKgso whichowereodispatchedoforosaleoinotheoLocalomarketotoous.oTheoVARINDERgSINGH CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-11-

importedo KIWIo upono inspectiono waso damagedo ando wereo dischargingowateroandofoundotoobeoUnfitoforoSaleoinoMarket.oTheo importedoKIWIowasothereafterodestroyedoinoouropresenceobeingo UnfitoforoHumanoConsumption."o

24.o o Theo petitionero thereaftero filedo CM-18329-CWP-2024o foro placingoonorecordotheophotographsoofotheodamagedogoodsoalongowithotheo Videoo showingo disposalo ofo theo importedo Foodo itemso i.e.o KIWIo witho theo prayerofororefundoofoCustomsoDutyodepositedoatotheotimeoofoclearanceoofo goodsotootheoPetitioner.oo

25.o o Inotheoaforesaidocircumstances,otheopetitionerohasonowolimitedo hisoprayerotootheosubmissionothatotheoreportothereafterohadobeenopreparedo whichoreflectedothatotheoentireoKiwiowasofoundotoobeototallyodamaged.oTheo petitionerohaveotoobeopaidodamagesoasotheoimportedofoodoitemsohadobeenogoto rotteno dueo too delayo ino clearanceo ofo goodso byo theo respondents.o Ito waso submittedothatotheodelayoinoreleaseoofotheogoodsowasoatotheobehestoofotheo respondentonos.o1otoo5oinspiteoofotheodirectionsohavingobeenoissuedobyotheo Courtofromotimeotootimeotooreleaseotheogoods.oTheosameowereonotoreleasedoono oneopretextoorotheoother.oo

26.o o Learnedo counselo foro theo petitionero furthero submittedo thato theo respondentso havingo filedo theiro replyo too theo writo petitiono aso wello aso theo applicationsoatonoopointoinotimeohaveobeenoableotoorebutotootheosubmissiono madeobyotheopetitioneroinorespectoofoamendmentoofoImportoGeneraloManifesto filedo u/so 30o ofo theo Act,o whereino ino termso ofo Subo Sectiono 30o (3)o theo respondentsowereoempoweredotoomakeoamendmentoinotheoImportoGeneralo Manifesto filedo byo theo Shippingo Company.o Howevero too theo contrary,o theo respondentsohaveoreliedouponotheocircularodatedo11.04.2017owhichoprescribedo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-12-

amendmentoonlyoatotheobehestoofotheoShippingoCompany.oFromotheoperusaloofo Sectiono30o(3)oofotheoAct,oitotranspiresothatotheoproperoOfficeroafterorecordingo hisosatisfactionomayopermitoamendmentoorosupplementotheoImportoGeneralo Manifest.oSinceoinotheopresentocaseofromotheoperusaloofotheoBilloofoLadingo datedo16.04.2023oissuedobyorespondentoNo.5oitowasospecificallyomentionedo thatotheoFinaloPlaceoofodeliveryoofogoodsoshallobeo"Ludhiana"otheoRespondento hadoerredoinoamendmentoofotheoImportoGeneraloManifestoatotheoveryofirsto instanceowhenotheopetitionerohadorequestedoforoamendmentovideoemailodatedo

24.05.2023.o

27.o o Ito iso furthero submittedo thato theo Respondento Departmento haso erredo ino appreciatingo thato theo goodso importedo byo theo petitionero wereo PerishableoFoodoItemsoComprisingoofo"KIWI"owhichohasolimitedoshelfolife,o furtherotheoActoofotheoRespondentoCustomsoinofailureotooamendotheoImporto GeneraloManifestoisoinotheoteethoofoSectiono30o(3)oofotheoAct,owhichodirectso theoProperoOfficerotooamendotheoImportoGeneraloManifest.oThusotheoperusalo ofotheoaforesaidoprovisionsoasowelloasodirectionsoissuedobyothisoCourtoinotheo interimoordersopassedofromotimeotootimeodemonstrateothatotheoRespondentso hado failedo too performo theiro dutieso ino accordanceo witho theo provisionso ofo CustomsoLaws.oTheoRespondentsocannotobeopermittedotootakeoshelteroofotheo Circularodatedo11.04.2017oasotheosaidocircularsohasobeenoissuedoforotheopropero implementationoofotheoprovisionsoofotheoCustomsoAct,omoreosoowhenoinotheo presentocaseotheoImportodocumentsoincludingotheoBilloofoLadingoissuedobyotheo ShippingoCompanyohadospecificallyomentionedoinotheosaidoBilloofoLadingoaso GRFLoLudhianaotoobeotheofinaloplaceoofodeliveryoofogoods.o o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-13-

28.o o Theorespondentsohadomiserablyofailedotooactoinoaccordanceowitho theoprovisionsoofo30o(3)oofotheoActowhichospecificallyodirectsoamendmentoofo IGMo whereo noo fraudulento intentiono iso apprehended,o theo presento caseo theo importodocumentoparticularlyo"BilloofoLading"owhichofindsomentionoofotheo FinaloPlaceoofoDeliveryoofogoodsotoobeoLudhianaohadofailedotoocarryoonotheo requisiteoamendmentsoatoappropriateopointoinotimeorenderingotheogoodsotoo deteriorate.oFurtherothisoCourtovideoInterimoordersopassedofromotimeotootimeo hadodirectedotheoCustomsotoocarryooutotheonecessaryoamendmentsoinoIGM,otheo saidoofficersofailedotoocomplyowithotheodirectionsoissuedofromotimeotootime,o renderingotheogoodsounfitoforoHumanoConsumption.o

29.o o TheoCustomsoOfficersoatoMundraohadofailedotooimplementotheo interimoordersopassedobyothisoCourtoinosoofarodespiteopassingoofotheointerimo orderodatedo02.06.2023otheogoodsowereoshiftedobyotheoRespondentoNo.o5o fromoMundraoInternationaloContaineroTerminalotooSaurashtraoFreightoPoLtd.o ItoisopertinentotoomentionothatoinotermsoofoSectiono141oofotheoCustomsoAct,o 1962,otheogoodsoandoconveyanceoshallobeosubjectotoocontroloofotheoCustomso Officers.o Sinceo theo Billo ofo Ladingo foundo mentiono thato theo finalo placeo ofo deliveryoofogoodsowaso"ICDoGRFLoSahnewaloLudhiana"otheoCustomsohado failedotooperformotheirodutiesoinopermittingomovementoofogoodsotooSaurashtrao FreightoPrivateoLtd,otherebyofurtherocausingodelayoinomovementoofogoodsotoo itsofinaloplaceoofoDeliveryoi.e.oICDoLudhiana.oo

30.o o TheoactooforespondentoNo.o5oinopurposelyofillingoWrongoImporto GeneraloManifestoandofailureotoofileocorrectoIGMomentioningoFinaloPlaceoofo DeliveryoofogoodsotoobeoGRFLoLudhianaoisoinotheoteethoofotheoprovisionsoofo Sectiono30oofotheoCustomsoAct,o1962owhichodirectsotheoinchargeoofotheovesselo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-14-

orotheoconcernedopersonotoofileocorrectoinformationoatotheotimeoofofillingoofo ImportoGeneraloManifest.oFurtheroforofailureotoofileocorrectoinformationoito waso incumbento upono theo Respondento Customso Officerso too initiateo actiono againstotheoShippingoCompanyounderotheoprovisionsoofoSectiono30oofotheoAct,o readowithoRegulationo11oofotheoSeaoCargooManifestoRegulations,o2020.o

31.o o ItoisofurtherosubmittedothatotheoactionoofotheorespondentoShippingo CompanyoinofilingowrongoImportoGeneraloManifestoisoevidentofromotheofacto thatotheoRespondentoShippingoCompanyohasoplacedoonorecordoannexureoR5/3o whichoisoanointernaloemailocommunicationodatedo11.04.2023oando12.04.2023,o betweenotheoofficesoofotheoShippingoCompanyowhereinoitohasobeenomentionedo thatotheoFinalodeliveryoshallobeoGRFL,oICDoSahnewal,oLudhianaoINSGF6.o

32.o o TheodelayoinoamendmentoofoIGMoandofurtherofilingoofoManual/o AdvanceoBilloofoEntryoforoclearanceoofogoodsoatoLudhianaowasosolelyoono accountoofoShippingoCompanyoasowelloasoCustomsoMundraowhoowereonoto amendingotheo Importo Generalo Manifestoaso evidento fromo theo emailso datedo

24.04.2024owherein,oitowasoadvisedothatonecessaryoamendmentsoinoIGMowaso too o beo o carriedo o outo byo Customs.o Furthero o theo o Shippingo o Companyo haso referredo too lettero datedo 19.05.2023o ando 29.05.2023o whereino theo Shippingo Lineohadointimatedoothatoonecessaryoamendmentsowereotoobeocarriedooutobyo theo o Customso o Mundra,o howevero o dueo o too o delayo o ino theo necessaryo amendmentsoinoIGMotheoRespondentoNo.5oinsistedothatoNOCoforomovemento cano onlyo beo issuedo subjecto too paymento ofo Containero Detentiono Chargeso amountingotoo`o4,63,247.70,oDetentionoChargesotillo10.06.2023oamountingotoo `o63,55,564.56,oCFSoCostoamountingotoo`o10,57,160.00oandoSecurityoDeposito ofo`o2,00,000.00operocontainer.oItoisopertinentotoomentionothatoallotheoaforesaido CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-15-

chargeso wereo ono accounto ofo facto thato theo Customso aso wello aso Shippingo CompanyofailedotoocorrectoIGModetailsodueotoowhichoonlineoBilloofoEntryo couldonotobeofiled.oo

33.o o Theorespondentsohaveofailedotoocarryooutotheodutyoofoamendmento ofoImportoGeneraloManifestoandopermitofillingoofoBilloofoEntryoatoappropriateo pointoinotimeoleadingotoodamageotootheogoodsobeingohighlyo perishableoino natureoasoisoevidentofromotheofactothatotheoemailodatedo03.06.2023owrittenobyo ShippingoCompanyo(i.e.oRespondentoNo.5),owhereinoitohasobeenoinformedo thato theo NOCo too customso waso alreadyo issuedo foro makingo necessaryo amendmentsoinotheoIGM,ohoweverotheoCustomsoDepartmentonotoonlyofailedo toomakeotheosaidoamendmentsoatotheoappropriateotime,obutopermittedoshiftingo ofogoodsofromoMundraoInternationaloImportoTerminalotooSaurashtraoFreighto PrivateoLtd.o

34.o o Despiteotheofactothatotheogoodsowereopermittedotoobeotransportedo fromo Mundrao too ICDo Ludhianao theo Customso Ludhianao failedo too acto ino accordanceo witho theo provisionso ofo Customso Lawso ando failedo too permito immediateo clearanceo aso evidento fromo theo lettero datedo 07.07.2023o (P-14)o requestingotheoCustomso Ludhianaoforoimmediateocomplianceoofotheoordero datedo06.07.2023.oFurtherotheorespondent-customsofailedotoodrawosampleso ando clearo theo goodso despiteo issuanceo ofo NOCo fromo FSSAIo ando Planto &o QuarantineoDepartment.oTheoPetitioneroinformedotheoCustomsoDepartmento thato theo goodso haveo alreadyo deterioratedo ando theo Customso Dutyo iso beingo depositedounderoprotest.o

35.o o Theo Respondentso hado miserablyo failedo too complyo witho theo orderso passedobyo thiso Courtoandohado illegallyo detainedotheo goodso despiteo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-16-

NOCo fromo FSSAIo ando Planto &o Quarantineo Department.o Theo petitionero havingo preferredo CMo No.o 10886o ofo 2023o seekingo directionso foro jointo inspectionoandopaymentoofocostoofotheogoods,otheosaidoJointoExaminationowaso alsoonotoconductedoforotheoreasonothatorespondentoNo.o5odidonotoparticipate,o alsootheopartoexaminationoconductedorevealedothatotheogoodsowereoalreadyo deteriorated.o Relevanto extractso ofo Jointo Examinationo reporto issuedo video Panchnammaodatedo27.07.2023oreadsoasounder:-o "Ito waso explainedo byo theo Customso Officerso thato undamagedo goodso i.e.o Fresho Kiwio haso too beo releasedo ando foro thato theo segregationo ofo theo consignmentso iso mandatory.o Theo representativeo ofo theo importer,o howevero submittedo thato theo consignmento mayo beo releasedo ino totoo ando theyo undertooko too disposeooffotheodamagedokiwioasoperolawoandowilloprovideotheo disposalocertificateotoothisoeffect."o ItoisopertinentotoomentionothatotheoJointoinspectionowasoconductedopertainingo toocratesoofoFreshoKIWIostoredoinofrontoofotheocontaineroandoinspectionoofo FreshoKIWIowasonotoconductedoinorespectoofo100%omaterialostoredoinoallotheo containers.o Thuso evidencingo thato ato theo relevanto pointo ino time,o 100%o examinationo ofo theo goodso i.e.o Fresho "KIWI"o waso noto conductedo byo theo respondentoCustomsoOfficers.oo

36.o o Sinceotheopetitionerohadospecificallyolodgedoprotestovideolettero datedo 07.07.2023o beforeo depositingo dutyo ando theo respondento ino jointo examinationo reporto datedo 27.07.2023o hado permittedo theo petitionero too fileo proofo ofo disposal,o theo petitionero havingo providedo theo relevanto documentso alongowithophotographsoandovideography,otheopetitioneroisoentitledofororefundo ofocustomsodutyopaidounderoprotest.o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-17-

o

37.o o Aso theo petitionero waso noto permittedo releaseo ofo goodso ato theo relevantopointoinotimeotheogoodsoimportedobyotheoPetitionerowereoillegallyo detainedobyotheoCustoms.oHeoreliesoonoGianoChandoandoOthersoVsoStateoofo Punjabo1983o(13)oELTo1365o(S.C.),owhereinoitohasobeenoheldoasounder:-o "Seizure'omeansotootakeopossessionoofocontraryotootheowishesoofo theoowneroofotheogoodsoinopursuanceoofoaodemandounderolegalo right.o Seizureo involveso ao deprivationo ofo possessiono ando noto merelyo ofo custodyo ofo goods.o Thus,o theo unilateralo acto ofo theo personoseizingoisotheoveryoessenceoofotheoconceptoofoseizure"o

38.o o Furtherorelianceoisoplacedoonotheojudgmentorenderedoinotheocaseo ofoS.J.oFabricsoPvt.oLtd.oVsoUnionoofoIndiao2011o(268)oELTo17o(Cal.),o whereinoitohasobeenoheldoasounder:-o "7.o WeoapproveotheoobservationoofotheolearnedoSingleoJudgeo thatl doonotothereoisonootimeolimitoforoissuingoorderoofoseizureo underoSectiono110.oIfotheoconsignmentoofoaopersonoisodetained,oito shouldobeopresumedothatotheogoodsohasobeenoseizedoinotermsoofo Sectiono110oofotheoActoevenoifonooformaloorderohasobeenoissuedo byo theo Customso Authorityo ando theo timeo foro issuingo noticeo too show-causeoinotermsoofoSectiono124(a)orunsofromotheoactualodateo ofo detention.o Ino theo caseo beforeo us,o ito appearso thato theo respondento authorityo haso alsoo treatedo theo seizureo too beo operativeoandoconsequently,ohasostartedoinvestigationobyoissuingo summonsounderoSectiono108oofotheoActoandohasoalsoogivenoshow-causeonoticeoforoextensionoofotimeobyofurtherosixomonths."o RelianceohasoalsoobeenoplacedoonotheojudgmentoofoCalcuttaoHighoCourtoino E.S.IoLtd.oVsoUnionoofoIndiao2003o(156)oELTo344o(Cal.),owhereinoitohaso heldoasounder:-o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-18-

"20.o Havingo behalfo ofo theo respectiveo consideredo theo submissionso madeo ono partieso weo areo inclinedo too accepto Mr.o Panja'so submissiono thato dominiono overo theo goodso initiallyo detainedoono9thoNovember,o2000,owentooutoofotheohandsoofotheo appellant-companyowhenoono22ndoNovember,o2000,otheoroomso inowhichotheogoodsohadobeenokeptowereosealedobyotheoCustomso Officers,oVaranasioDivision.oTheofactsoofothisocaseoareosquarelyo coveredo byo theo factso ofo theo Hindustano Motorso caseo (supra).o Onceotheodominionooverotheogoodsopassedooutoofotheohandsoofo theo appellant-companyo ito tantamountedo too seizureo foro allo practicalo purposes.o Ito iso oneo thingo foro theo goodso too beo kepto detainedoinoaomannerowhereotheoownerothereofohasoaccessotootheo sameobutoisopreventedobyoaoprohibitoryoorderofromodealingowitho theosame.oTheosituationoisoradicallyoalteredowhenotheoowneroofo theogoodsonoolongerohasoaccessotheretooandohasonoocontroloovero theosame."o RelianceoisoalsooplacedoonoRajeshoAroraoVsoCollectoroofoCustomso1998o

(101)oELTo246o(Del.)owhereinothisoCourtohasoheldoasounder:-oo "11.o Thuso theo customso departmento nevero disputedo theo factothatotheocaroinoquestionowasobeingodetainedobyothem.o Ifo theyo wereo noto detainingo theo caro theyo wouldo haveo immediatelyorespondedotootheonoticesoofotheopetitionerso andosaidothatotheocarowasonotobeingodetainedobyothemoando theo petitionerso waso freeo too takeo awayo theo same.o Theo customsoauthoritiesothusoareotryingotoobeocleveroandoino orderotoooverreachotheoCourtohaveohowotakenotheostando thatotheyoneverodetainedotheocar.oTheofactoremainsothato theocaroevenowhenoitowasokeptoatotheopremisesoofoBaglao waso impoundedo ando theo petitionero ino anyo caseo waso deprivedo ofo itso possessiono oro custody.o Moreovero theo respondentsohaveothemselvesoadmittedoinosub-parao(D)oofo theosubmissionsoaboutobriefo factso ofo theo caseo thatoS.P.o Baglao submittedo ao lettero datedo 22ndo September,o 1993o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-19-

whereinoheosubmittedotheokeysoofotheocaroinoquestionotoo theodepartmentowithoanoundertakingonototoouseotheocaro withouto theo permissiono ofo theo department.o Thuso admittedlyotheocarowasowithinotheocontroloandocustodyoofo theorespondents.oInolawothisoisosufficientoforopurposesoofo treatingo ito aso ao seizuringo undero Sectiono 110o ofo theo CustomsoAct."o o39.o o Relyingo ono theo aforesaido judgments,o heo submitso thato theo petitioneroisoentitledoforofullorefundoofodutyoasowelloasocostsoofogoods.oHeo submitsothatosinceotheogoodsowereodetainedobyotheoRespondent-Customsoforo failureo ono theo parto ofo theo Respondento Shippingo Companyo too fileo correcto ImportoGeneraloManifest,owhichotheoRespondentoCommissioneroofoCustomso Mundraowereorequiredotooamendotheosameoimmediatelyowhenoitowasobroughto tootheonoticeoofotheoCustomsoDepartmentovideoletterodatedo25.04.2023o(P-3).o Theo Respondentso collectivelyo failedo ono moreo thano oneo countso too permito timelyofillingoofoBilloofoEntry,oAmendmentoinoIGM,oshiftingoofoGoodsofromo SaurshtraotooMundraoportoandothereafteromovementoofogoodsotooLudhiana,o thus,otheogoodsoimportedobyotheopetitionerogotodamagedoandolostoitsoshelfolife.o FurtherodespiteoshiftingoofogoodsofromoMundraotooLudhiana,otheoCustomso OfficersopostedoatoLudhianaofailedotooclearotheogoodsowithinostipulatedotime,o whichoisoevidentofromotheofactothatotheosamplesopertainingotoogoodsowereonoto permittedo too beo drawno immediatelyo wheno theo containerso hado reachedo Ludhiana.oThereafterotheogoodsowereoorderedotoobeoseizedoonotheoreasonableo beliefothatotheosameohadonotooriginatedofromotheoCountryoofoOriginodeclaredo aso "Chile".o Theo serieso ofo factso causingo delayo ino everyo actiono byo theo respondentsocollectivelyoatorelevantotimeoandocontinuousofailureoonotheoparto ofotheoRespondentoOfficersoandoShippingoCompanyoinotimelyocomplianceoofo theointerimoordersoleadingotoodelayoinoclearanceoofogoodsoforomoVArReINoDthERagSnINoGtHhreeo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-20-

months,otheorespondentsoareorequiredotoobeosaddledowithotheocostoofogoods.o RelianceoisoplacedoonoUnionoofoIndiaovsoM.D.oEsaoAlio2011o(269)oELTo49o (Gau.),owhereinoitohasobeenoheldoasounder:-o "13.o Itoisoapparentothatoaospecificodirectionowasoissuedotootheo respondentoappellantoauthorityotooreturnotheogoodsoseizedobyo themobyoobtainingoaosecurityobondoofoRs.o15,000/-.oHowever,otheo ordero passedobyo thiso Courto wasonoto carriedoouto withoutoanyo cogentoreason.oOveroandoabove,otheoCommissioneroofoCustoms,o NorthoEasternoRegion,oalsoopassedoanoorderoono26.02.2002,oforo releasingo theo goodso ando vehicleo too theo owner,o whicho onlyo revealsoandoreflectsothatotheoseizureowasoillegal.oIndolenceoofo theoappellantoauthorityoinotakingoimmediateonecessaryoactionotoo saveo theo goodso iso writo large.o Undeniably,o theo goods,o ino question,o goto damagedo dueo too apathyo ono theo parto ofo theo authorityoconcerned.oApparently,oifotheogoodsowouldohaveobeeno returnedo too theo petitioner/respondento ato theo righto earnest,o ino responseotootheodirectionoissuedobyotheolearnedosingleoBenchoofo thiso Court,o theo goodso wouldo noto haveo beeno damaged.o Consequently,otheorespondentowouldonotohaveosufferedoanyoloss.o Theo losso sufferedo byo theo respondento iso solelyo dueo too theo irresponsibleo attitudeo ofo theo appellanto authorityo ando blatanto defianceoofotheodirectionoissuedobyotheolearnedoSingleoJudgeoino WPo(C)oNo.o3380oofo1999.oo

14.o Theogroundsocanvassedobyotheoappellantsocounselothatotheo lossoandodamageotootheogoodsowasonotocausedodueotootheofaultoofo theo officerso ofo theo Department,o buto dueo too non-listingo ofo theo applicationo filedo byo theo Department,o foro clarificationo ofo theo orderopassedoinoWPo(C)oNo.o3380oofo1999,odoonotoatoalloappealo toous.oHowever,ofactoremainsothatodueotoomishandlingoofotheo entireosituationoandoinactionoonotheopartoofotheoappellants,otheo goodsogotodamagedoandoconsequently,otheorespondentohadotoo sustainolossoandoinjury,oforowhichoheohasobeenorightlyoheldotoobeo entitledotooadequateocompensation.oo VARINDERgSINGH CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-21-

15.o Inl oNagendraoRaoov.oStateoofoA.P.oreportedoinoAIRo1994o SCo2663,o1994oSCCo(6)o205oaoquestionoaroseoforoconsiderationo beforeotheoHon'bleoSupremeoCourt,oasotoowhetheroseizureoofotheo goodsoinoexerciseoofostatutoryopowers,ounderotheoAct,oimmunizeso theoState,ocompletely,ofromoanyolossoorodamageosufferedobyotheo owner.oWhetheroconfiscationoofopartoofotheogoodsoabsolvesotheo Stateofromoanyoclaimoforotheolossoorodamageosufferedobyotheo ownero foro theo goods,o whicho areo directedo too beo releasedo oro returnedo too it.o Whileo decidingo theo Issueo ino questiono Hon'bleo SupremeoCourt,obyodiscussingotheodecisionorenderedoinoBasavvao Komo Dyamangoudao Patilov.oStateo ofo Mysoreoobservedo aso followso:-o "Similarly,oinoBasavvaoKomoDyamangoudaoPatilov.oStateo ofoMysoreo[(1977)o4oSCCo358:o1977oSCCo(Cri)o598o:oAIRo 1977oSCo1749o240],otheoquestionoaroseoregardingopowerso ofotheoCourtoinoindemnifyingotheoowneroofotheopropertyo whichoisodestroyedoorolostowhilstoinotheocustodyoofotheo Court.oTheogoodsowereoseizedofromotheopossessionoofotheo accused.oTheyowereoplacedoinotheocustodyoofotheoCourt.o Whenotheoappealoofotheoaccusedowasoallowedoandogoodso wereodirectedotoobeoreturnedoitowasofoundothatotheyohado beenolost.oTheoCourt,oinotheocircumstances,oheldo:o(SCCo pp.o 361-62,o parao 6)o "Ito iso commono groundo thato theseo articlesobelongedotootheocomplainant/appellantoandohado beenostolenofromoherohouse.oItois,otherefore,oclearothatotheo articlesowereotheosubject-matteroofoanooffence.oThisofact,o therefore,oisosufficientotooclotheotheoMagistrateowithotheo powerotoopassoanoorderofororeturnoofotheoproperty.oWhereo theo propertyo iso stolen,o losto oro destroyedo ando thereo iso nooprimao facieodefenceo madeo outo thato theo Stateo oro itso officersohadotakenodueocareoandocautionotooprotectotheo property,o theo Magistrateo may,o ino ano appropriateo case,o whereotheoendsoofojusticeosoorequire,oorderopaymentoofotheo valueoofotheoproperty.o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-22-

33.o Therefore,owhereotheogoodsoconfiscatedooroseizedo areorequiredotoobeoreturnedoeitherounderoordersoofotheo courtoorobecauseoofotheoprovisionoinotheoAct,othisoCourto hasonotocountenancedotheoobjectionothatotheogoodsohavingo beenolostoorodestroyedotheoowneroofotheogoodsohadonoo remedyoinoprivateolawoandotheocourtowasonotoempoweredo toopassoanoorderoorograntodecreeoforopaymentoofotheovalueo ofogoods.oPublicopolicyorequiresotheocourtotooexerciseotheo poweroinoprivateolawotoocompensateotheoownerowhereotheo damageoorolossoisosufferedobyotheonegligenceoofoofficersoofo theoStateoinorespectoofocauseoofoactionoforowhichosuitsoareo maintainableo ino civilo court.o Sinceo theo seizureo ando confiscationoofoappellant'sogoodsowasonotoinoexerciseoofo powerowhichocouldobeoconsideredotoobeoactoofoStateoofo whichonoocognizanceocouldobeotakenobyotheocivilocourt,o theosuitoofotheoappellantocouldonotobeodismissed."oo

16.o InoStateo ofo oBombayo(nowoGujarat)ov.oMenonoMahomedo Hajio Hasam:oo AIRo 1967o SCo 1885,o Hon'bleo Supremeo Courto observedothato"theopowerotooseizeoandoconfiscateowasodependento uponoaocustomsooffenceohavingobeenocommittedooroaosuspiciono thatosuchooffenceohadobeenocommitted.oTheoorderoofotheoCustomso Officerowasonotofinaloasoitowasosubjectotooanoappealoandoifotheo appellateoauthorityofoundothatothereowasonoogoodogroundoforotheo exerciseoofothatopower,otheopropertyocouldonoolongerobeoretainedo andohadounderotheoActotoobeoreturnedotootheoowner.oThatobeingo theopositionoandotheopropertyobeingoliableotoobeoreturnedothereo wasonotoonlyoaostatutoryoobligationotooreturnobutountilotheoordero ofoconfiscationobecameofinaloanoimpliedoobligationotoopreserveo theopropertyointactoandoforothatopurposeotootakeosuchocareoofoito aso ao reasonableo persono ino likeo circumstanceso iso expectedo too take".o

17.o Inl oCenturyo Spinningo &o Manufacturingo Co.o Ltd.oando Anotherov.oTheo Ulhasnagaro Municipalo Councilo ando Another,oMANU/SC/0397/1970o:o[1970]o3oSCRo854oitohasobeenoVARINDERgSINGH CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-23-

heldobyotheoHon'bleoSupremeoCourtothatotheoHighoCourtoisoato libertyotooexerciseoitsojudicialodiscretionounderoArticleo226oofotoo giveoeffectiveoreliefoespeciallyowhenoaopartyoisoclaimingotoobeo aggrievedobyotheoactionoofoaopublicobodyooroauthorityoandoito needonotorelegateoaopartyotooseeko"reliefobyoaosomewhatolengthy,o dilatoryoandoexpensiveoprocessobyoaocivilosuit",omerelyobecauseo aoquestionoofofactoisoraised.o

18.l Ino viewo ofo theo aboveo discussions,o theo petitioner/o respondentowasoentitledotooallotheoseizedoarticles,oinoquestion.o However,o admittedly,o theo seizedo goods,o ino question,o goto damagedoandodestroyed,oconsequently,oitocouldonotobeoreturnedo too theo petitioner/respondent.o Therefore,o theo awardo ofo compensationo madeo byo theo learnedo singleo Judgeo ino theo impugnedoorderoisoreasonableoandojustified."o o40.o o Learnedo counselo foro theo petitionero alsoo relieso ono theo judgmento ofo Hon'bleotheoSupremeoCourtoinoNoNagendraoRaoo&oCo.oVsoStateoofoA.P.o(1994)o SCCo(Cri)o1609,owhereinoitohasobeenoheldoasounder:-o "30.o oIno thiso caseo aftero conclusiono ofo proceedingso theo authoritiesointimatedotheoappellantotootakeotheogoodsoasotheyo havingonotobeenoconfiscated,oheowasoentitledofororeturnoofoit.oTheo appellantoinoresponseotootheolimitationowentothereobutoitorefusedo tootakeodeliveryoofoitoas,oaccordingotooit,otheocommodityohado deterioratedobothoinoquantityoandoquality.oThisoclaimohasobeeno acceptedobyotheolowerocourts.oWhatowasoseizedobyotheoauthorityo wasoanoessentialocommodityowithinotheomeaningoofoclauseo(d)oofo subosectiono(2)o[sicoSectiono2o(a)].oWhatotheolaworequiresoundero sub-sectiono (2)o ofo Sectiono 6-Co too beo returnedo iso alsoo theo essentialo commodity.o Anyo Commodityo continueso too beo so,o soo longo aso ito retainso itso characteristicso ofo beingo usefulo ando serviceable.o Ifo theo commodityo ceasedo too beo ofo anyo useo oro iso renderedowasteodueotooitsodeteriorationoororusting,oitoceasesotoo beocommodityomucholessoessentialocommodity.oTherefore,oifotheo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-24-

commodityoofotheoappellantowhichowasoseizedobecameouselesso dueotootheonegligenceoofotheoofficersoitoceasedotoobeoanoessentialo commodityoandotheoappellantowasowellowithinoitsorightsotooclaimo thatosinceoitowasonotopossibleoforotheoauthoritiesotooreturnotheo essentialocommodityoseizedobyothemo,oitowasoentitledotoobeopaido theopriceothereofoasoifotheoessentialocommodityowasohadobeeno soldo too theo Government.o Theo fictiono ofo saleo whicho iso incorporatedoinosub-sectiono(2)oisotooprotectotheointerestoofotheo owneroofogoods.oItohasotoobeoconstruedoliberallyoandoinofavouroofo theoowner.oTheorespondentsowereothusoliableotoopayotheopriceoofo theoFertiliserowithointerestoasodirectedobyotheoTrialoCourt."o o41.o o InoBasavvaoKomoDyamangoudaoPatilo(SMT)oVsoStateoofoMysoreoando Anothero(1977)oSCCo(Crl.)o598,otheoSupremeoCourtoheldoasounder:-o "6.o Itoisocommonogroundothatotheseoarticlesobelongedotootheo complainant/appellantoandohadobeenostolenofromoherohouse.oItoiso therefore,oclearothatotheoarticlesowereotheosubjectomatteroofoano offence.o Thiso fact,o therefore,o iso sufficiento too clotheo theo Magistrateowithotheopowerotoopassoanoorderofororeturnoofotheo property.oWhereotheopropertyoisostolen,olostoorodestroyedoando thereoisonooprimaofacieodefenceomadeooutothatotheoStateooroitso Officersohadotakenodueocareoandocautionotooprotectotheoproperty,o theoMagistrateomay,oinoanoappropriateocase,owhereotheoendsoofo justiceosoorequire,oorderopaymentoofotheovalueoofotheoproperty.o WeodoonotoagreeowithotheoviewoofotheoHighoCourtothatoonceotheo articleso areo noto availableo witho theo Court,o theo Courto haso noo powerotoodooanythingoinotheomatteroandoisoutterlyohelpless."o

42.oo o Learnedo counselo foro theo petitionero alsoo relieso ono theo judgmento ofo Hon'bleotheoSupremeoCourtoinoStateoofoGuajratoVsoMenonoMahomedoHajioHasano

(Dead)obyohiso Legalo Representativeo o AIRo 1967o SCo 1885,o whereinoito haso beeno observedoasounder:-o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-25-

"7.o Onotheofactsoofotheopresent,ocase,otheoStateoGovernment,o noodoubtoseizedotheosaidovehiclesopursuantotootheopoweroundero theo Customso Act.o Buto theo powerotoo seizeo andoconfiscateo waso dependentouponoaoCustomsooffenceohavingobeenocommittedooroao suspicionothatosuchooffenceohadobeenocommitted.oTheoorderoofo theoCustomsoOfficerowasonotofinaloasoitowasosubjectotooanoappealo andoifotheoAppellateoAuthorityofoundothatothereowasonoogoodo groundoforotheoexerciseoofothatopower,otheopropertyocouldonoo longerobeoretainedoandohadounderotheoActobeoreturnedotootheo owner.oThatobeingotheopositionoandotheopropertyobeingoliableotoo beoreturnedothereowasonotoonlyoaostatutoryoobligationotooreturno buto untilo theo ordero ofo confiscationo becameo finalo ano impliedo obligationotoopreserveotheopropertyointactoandoforothatopurposeo too takeo sucho careo ofo ito aso ao reasonableo persono ino likeo circumstancesoisoexpectedotootake.oJustoasoaofinderoofopropertyo hasotooreturnoitowhenoitsoowneroisofoundoandodemands,oitosootheo StateoGovernmentowasoboundotooreturnotheosaidovehiclesoonceoito waso foundo thato theo seizureo ando confiscationo wereo noto sustainable.oThereobeingothusoaolegaloobligationotoopreserveotheo propertyointactoandoalsootheoobligationotootakeoreasonableocareo ofoitosooasotooenableotheoGovernmentotooreturnoitoinotheosameo conditiono ino whicho ito waso seized,o theo positiono ofo theo Stateo Governmentountilotheoorderobecameofinalowouldobeothatoofoao bailee.oIfothatoisotheocorrectopositionoonceotheoRevenueoTribunalo SetoasideotheoorderoofotheoCustomsoOfficeroandotheoGovernmento becameoliableotooreturnotheogoodsotheoownerohadotheorightoeithero toodemandotheopropertyoseizedooroitsovalue,oif,oinotheomeantimeo theoStateoGovernmentohadoprecludedoitselfofromoreturningotheo propertyoeitherobyoitsoownoactoorothatoofoitsoagentsooroservants.o Thiso waso preciselyo theo causeo ofo actiono ono whicho theo respondent'sosuitowasogrounded.oTheofactothatoanoorderoforoitso disposalowasopassedobyotheoMagistrateowouldonotoinoanyowayo interfereowithoorowipeoawayotheorightoofotheoownerotoodemando theoreturnoofotheopropertyoorotheoobligationoofotheoGovernmento tooreturnoit.oTheoorderoofodisposaloinoanyoeventowasoobtainedoono CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-26-

ao falseo representationo thato theo propertyo waso ano unclaimedo property.oEvenoifotheoGovernmentocannotobeosaidotoobeoinotheo positionoofoaobailee,oitowasoinoanyocaseoboundotooreturnotheosaido propertyobyoreasonoofoitsostatutoryoobligationoorotoopayoitsovalueo ifoitohadodisabledoitselfofromoreturningoitoeitherobyoitsoownoactooro byoanyoofoitsoagentsoandoservants.oInotheseocircumstancesoitoiso difficulto too appreciateo howo theo contentionso thato theo Stateo Governmentoisonotoliableoforoanyotorturousoactoofoitsoservantso canopossiblyoarise."o o43.o o Ino Centuryo Spinningo ando Manufacturingo Companyo Ltd.o Vso UlhasnagaroMunicipaloCouncilo&oAnothero(1970)o1oSupremeoCourtoCaseso582,o theoSupremeoCourtoheldoasounder:-o "8.o TheoHighoCourtomay,oinoexerciseoofoitsodiscretion,odeclineo tooexerciseoitsoextraordinaryojurisdictionounderoArticleo226oofo theo Constitution.o Buto theo discretiono iso judicialo ifo theo petitiono makeso ao claimo whicho iso frivolous,o vexatious,o oro primao facieo unjust,ooromayonotoappropriatelyobeotriedoinoaopetitionoinvokingo extraordinaryojurisdictionotheocourtomayodeclineotooentertainotheo petition.oButoaopartyoclaimingotoobeoaggrievedobyotheoactionoofoao publicobodyooroauthorityoonotheopleaothatotheoactionoisounlawful,o highohandedo,oarbitraryoorounjustoisoentitledotooaohearingoofoitso petitiono ono theo meris.o Apparentlyo theo petitiono filedo byo theo Companyo dido noto raiseo anyo complicatedo questiono ofo facto foro determination,o ando theo claimo couldo noto beo characterizedo aso frivolous,o vexatiouso oro unjust.o Theo Higho Courto haso giveno noo reasonso foro dismissingo theo petitiono ino limineo ando ono ao considerationoofotheoavermentsoinotheoPetitionoandotheomaterialo placedobeforeotheoCourtoweoareosatisfiedothatotheoCompanyowaso entitledo too haveo itso grievanceo againsto theo actiono ofo theo Municipalityowhichowasoprimaofacieounjustotried."o

44.oo o Upono placingo relianceo ono theo aforesaido judgments,o theo petitioner'so goodso beingo perishableo ino nature,o ito waso dutyo casto upono theo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-27-

OfficersoofoCustomsotoohaveoactedopromptlyoinoorderingoforoamendmentoofo ImportoGeneraloManifestoasoevidentofromotheoBilloofoLadingowhichodescribedo FinaloPlaceoofoDeliveryoofogoodsotoobeoICDoGRFLoLudhiana.oThus,ofailureo onotheopartoofotheoOfficersoofoCustomsoasowelloasoShippingoCompanyoforo amendingotheoIGMotheogoodsoimportedobyotheopetitionerostoododetainedoforoao considerableo periodo ofo timeo renderingo themo unfito foro use.o Further,o theo respondentso havingo agreedo upono jointo examinationo thato theo goodso wereo renderedounfit,owithodirectionsotoosubmitoproofoofodisposal,otheopetitionerohaso placedoallosuchodocumentsoonorecord.o

45.o o Learnedo counselo foro theo petitionero submitso thato theo delayo ino movementoofotheogoodsofromoMundraotooLudhianaobyotheorespondentsoasowello asodelayoinoclearanceoofogoodsobyoLudhianaoCustomsohasoresultedoinocausingo completeo losso too theo petitionero and,o therefore,o haso prayedo too directo theo respondentsotoobearotheocostoofotheogoodsowhichohadogotorottenoandodestroyedo andorefundotheoduty.oo

46.o o Writtenosubmissionohasobeenofiledoonobehalfooforespondentonos.o 1otoo4.oItoisostatedothatoasoperoSectiono26AoofotheoAct,orequirementsohadonoto beenocompletedobecauseotheogoodsohadonotobeenodestroyedoinopresenceoofotheo properoofficer.oItoisosubmittedothatotheoapplicationofororefundounderoSectiono 26AoofotheoActohasonotobeenofiledowithinotheotimeolineoprovidedotherein.oTheo respondentsobyowayoofotheirowrittenosubmissionohaveoalsooallegedothatotheo phytosanitaryocertificateosubmittedobyotheopetitioneroisonotogenuineoandoiso fabricatedo aso theyo hado receivedo ano emailo fromo Deputyo Director,o DRI,o Nagpur,oofotheopetitionerohavingoimportedoIranianooriginoKiwiofruits.o

47.o o Learnedocounseloforotheorespondentsohasoalsooinvitedoattentiono tooprovisionsoofoSectiono26A(3)oofotheoActotoosubmitothatonoorefundoundero CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-28-

sub-sectiono(1)oshallobeoallowedoinorespectoofoperishableogoodsoandogoodso whichohaveoexceededoinotheiroshelfolifeoorotheirorecommendedostorageobeforeo useoperiod.oTherefore,othereowasonoooccasionotoopermitorefundoofoduty.oHeo reliesoonoB.oPremanandoandoothersovsoMohanoKoikaloandootherso2011o(4)o SCCo266.o

48.o o Learnedo counselo foro theo respondentso furthero submitso thato ono

27.07.2023,o wheno theo jointo inspectiono waso done,o theo Kiwiso whicho wereo damagedofromo20otoo25%owhileotheoapplicationounderoSectiono26AoofotheoActo hasobeenomovedoallegingo100%oofokiwisobeingodamaged.oClaimooforefundoofo 100%ocustomoduty,otherefore,oisonotomaintainable.oHeofurtherosubmitsothato disputedo questiono iso involvedo ino theo petitiono ando thiso Courto oughto noto entertainotheopleaooforefundoofotheoduty.o

49.o o Weohaveoconsideredotheosubmissions.ooo

50.o o Fromotheoperusaloofotheofactsowhichohaveocomeoonorecordoando theoordersopassedobyothisoCourtofromotimeotootime,oweoareosatisfiedothatotheo respondent-CustomoDepartmentohadowrongfullyoandoillegallyowithheldotheo perishableofoodoitemoi.e.oKiwiowhichohasolimitedoshelfolife.oWeonoticedothato inoimportocasesoofoperishableogoodsothereoisoanoinherentourgencyowhichoneedso toobeonoticedoandoconsideredobyotheoconcernedostakeholders.oInotheofactsoofo theopresentocase,oweofindothatothereohasobeenohugeodelayoinocomplianceoofotheo procedure.oWhileoinitiallyotheorespondentsodidonotoissueotheonecessaryoorders,o itoisoonlyowithotheodirectionoofothisoCourtothatotheorespondentsopermittedotheo amendmentoofoImportoGeneraloManifesto(IGM)ofromoMundraoportotooGRFLo ICD,oSahnewal,oLudhiana.oThisoCourtoinoitsoorderodatedo31.05.2023onoticedo asounder:-o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-29-

"Pursuantotootheoletterodatedo30.05.2023,otheorespondentso haveoamendedotheoIGMoforochangingoPortoofodestinationofromo MundraoPortotooGRFLoICDoSahnewalo(INSGF6),oLudhianaoando theyo haveo allowedo Transshipmento ofo theo cargo.o Pursuanto too letterodatedo30.05.2023,opetitionerotootakeotheogoodsofromotheo Customsoarea,oMundraowithoutoinsistenceoofoNOCobecauseotheo disputeoquaoshippingoisoaoprivateodispute.o Forocomplianceolistoono02.06.2023."o o

51.o o ButoweofindothatoinospiteoofotheoamendmentoofoIGM,otheogoodso wereonotoactuallyoreleasedoandowereoallowedotoobeoshiftedobyotheoshippingo companyofromoMundraoSeaoPortotooSaurashtraoFreightoPrivateoLimited.oThiso Courtohadotooagainointerveneobyopassingoorderodatedo02.06.2023,oasonoticedo above.o Ito iso onlyo wheno theo Courto foundo thato itso orderso wereo noto beingo compliedowithoandoactionoamountedotoocommittingocontemptoofoCourtothato theogoodsowereotransshippedotooLudhiana.oTheorespondentsodidonotoreleaseo theogoodsoevenothereafteroandoagainoraisedoaodoubtowithoregardotootheoplaceoofo originoofoimportoofoKiwiofruitoinspiteoofothereobeingodocumentsoissuedobyotheo UAEo Customo evidencingo theo origino ofo theo goodso aso Chile.o Upono jointo inspectionoconductedoinotermsoofoordersopassedobyothisoCourtoono24.07.2023,o 25%o ofo theo goodso wereo onlyo examinedo whicho reflectedo 25%o ofo theo saido goodsohaveobeenocompletelyodamaged.oo

52.o o Weofindothatotheogoodsowereoultimatelyoreleasedoono01.08.2023o andotheocertificateowhichohasobeenoplacedoonorecordoreflectsothatotheoentireo goodso weighingo 89,420o Kgso wereo foundo completelyo damagedo ando wereo renderedobeingounfitoforohumanoconsumption.oAocertificateohasobeenoplacedo byotheopetitioneroalongowithotheowrittenostatementowhichohasobeenotakenoono record.o Weo are,o therefore,o constrainedo too findo theo lackadaisicalo approacho CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-30-

adoptedo byo theo respondents,o whicho haso resultedo ino causingo losso too theo importer.oItowould,otherefore,obeoaoruleoinotheoprovisionsoofoSectiono26A(3)oofo theoAct,owhichoreadsoasounder:-o "26A.oRefundoofoimportodutyoinocertainocases.o(1)Whereo ono theo importationo ofo anyo goodso capableo ofo beingo easilyo identifiedoasosuchoimportedogoods,oanyodutyohasobeenopaidoono clearanceoofosuchogoodsoforohomeoconsumption,osuchodutyoshallo beorefundedotootheopersonobyowhomooroonowhoseobehalfoitowaso paid,oif-o

(a)o theo goodso areo foundo too beo defectiveo oro otherwiseo noto ino conformityowithotheospecificationsoagreedouponobetweenotheo importeroandotheosupplieroofogoods:o Providedothatotheogoodsohaveonotobeenoworked,orepairedooro usedo aftero importationo excepto whereo sucho useo waso indispensableotoodiscoverotheodefectsooronon-conformityowitho theospecifications;o

(b)otheogoodsoareoidentifiedotootheosatisfactionoofotheoAssistanto Commissionero ofo Customso oro Deputyo Commissionero ofo Customsoasotheogoodsowhichowereoimported;o

(c)o theo importero doeso noto claimo drawbacko undero anyo othero provisionoofothisoAct;oando

(d)o(i)oootheogoodsoareoexported;ooro

(ii)o theo importero relinquisheso hiso titleo too theo goodso ando abandonsothemotoocustoms;ooro

(iii)o sucho goodso areo destroyedo oro renderedo commerciallyo valuelessoinotheopresenceoofotheoproperoofficer,oo inosuchomanneroasomayobeoprescribedoandowithinoaoperiodonoto exceedingothirtyodaysofromotheodateoonowhichotheoproperoofficero makesoanoorderoforotheoclearanceoofoimportedogoodsoforohomeo consumptionounderosectiono47:o Providedothatotheoperiodoofothirtyodaysomay,oonosufficiento causeo beingo shown,o beo extendedo byo theo Commissionero ofo Customsoforoaoperiodonotoexceedingothreeomonths:o CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-31-

Providedofurtherothatonothingocontainedoinothisosectiono shalloapplyotootheogoodsoregardingowhichoanooffenceoappearsotoo haveobeenocommittedounderothisoActooroanyootherolawoforotheo timeobeingoinoforce.o

(2)o Anoapplicationofororefundoofodutyoshallobeomadeo beforeotheoexpiryoofosixomonthsofromotheorelevantodateoinosucho formoandoinosuchomanneroasomayobeoprescribed.o Explanation.-Foro theo purposeso ofo thiso sub-section,o "relevantodate"omeans,-o

(a)o inocasesowhereotheogoodsoareoexportedooutoofoIndia,otheo dateo ono whicho theo propero officero makeso ano ordero permittingo clearanceo ando loadingo ofo goodso foro exportationounderosectiono51;o

(b)o inocasesowhereotheotitleotootheogoodsoisorelinquished,otheo dateoofosuchorelinquishment;oo

(c)o ino caseso whereo theo goodso areo destroyedo oro renderedo commerciallyovalueless,otheodateoofosuchodestructionooro renderingoofogoodsocommerciallyovalueless.o

(3)o Noorefundounderosub-sectiono(1)oshallobeoallowedo inorespectoofoperishableogoodsoandogoodsowhichohaveoexceededo theiro shelfo lifeo oro theiro recommendedo storage-before-useo period."o However,oinoouroopinion,oprovisionsoofoSectiono26A(3)oofotheoActowouldonoto beoapplicableoinotheofactsoofotheopresentocaseowhereotheogoodsoperishedoono accountoofonon-complianceoofoCourt'soorderowithinotime.oItoisoaocaseowhereo theo respondentso haveo themselveso createdo hurdleso ino theo releaseo ofo theo perishableo goods.o Whileo 100%o customo dutyo iso imposedo foro importo ofo perishableogoods,oifotheogoodsoitselfoareodamagedoandobecomeocompletelyo un-useableoforohumanoconsumption,oinoouroopinion,otheosameodeservesotoobeo refunded.oImportoofoSectiono26A(3)oofotheoActocannotobeounderstoodotooallowo unjustoenrichmentofromoaojustified,obonafideoimporter.oo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-32-

53.o o Thus,ofromotheoaboveoprovisionsoofoSectiono26A(3)oofotheoAct,o itoisoapparentothatotheoaforesaidoSectionodoesonotoalloworefundoofodutyoino respectoofoperishableogoodsoandotheogoodsowhichohaveoexceededotheiroshelfo lifeoorowhereotheogoodsoareofoundotoohaveobeenodamaged.oHowever,oatotheo sameotimeoitodoesonotodealowithotheosituations,oasohaveoarisenoinotheopresento case.o Obviously,o aso noticedo above,o theo departmento haso issuedo severalo circularsofromotimeotootimeosensitizingotheoneedotoodealowithotheoimportogoodso expeditiously,owhichoareoperishableoinonature.oButoweofindothatoevenoaftero interventiono ofo thiso Courto directingo theo respondentso too takeo actiono expeditiously,otheoofficersohaveoputoaolotoofoobstaclesoandohurdlesoinotheo releaseoofoperishableogoodsoresultingotheogoodsotoobeounuseableoforohumano consumption.o Inotheo circumstances,otheoquestiono ariseso asotoo whetherotheo claimo ofo importo dutyo depositedo byo theo importer/o petitionero undero protesto shouldobeoallowedotoobeoreturnedobyotheoCustomoAuthorities.ooo o oo

54.o o Theo interpretationo ofo Sectiono 26A(3)o ofo theo Act,o aso noticedo above,ocannotobeoheldotoomeanotheodenialoofoaorefundoclaimoevenowhereotheo goodsohaveoperishedoandotheoshelfolifeohasoendedoafterotheogoodsohaveoalreadyo touchedotheostore.oWeohaveoextensivelyonoticedotheoorderopassedofromotimeotoo timeobyotheoCourto(supra).oTheosameoreflectsotheoattitudeoadoptedobyotheo Customo Authoritieso thato theyo wereo noto readyo too releaseo theo goods.o Theo shippingocompanyoalsoodidonotocooperateoinospiteoofodirectionsobyothisoCourt,o andoanoattitudeoofoinsensitivityotootheogoodsobeingoperishableowasoadopted.oo

55.o o Theocertificatesoplacedoonorecordodulyosatisfyousothatotheofruits-Kiwiohadogotorottenoandodestroyed,obeingounfitoforohumanoconsumption.oIfo theofruitowouldohaveobeenoallowedotoobeosoldoinotheomarket,oitowouldohaveo affectedotheohealthoofolargeonumberoofopersons.oOnceoweofindothatotheogoodso CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-33-

haveobeenodestroyed,otheorespondentsocannotobeoallowedotooretainotheoimporto dutyoasoitowouldomeanotoounjustoenrichment.oInoRamrameshwarioDeviovso NirmalaoDevioAIRo2011oSCo3117,oHon'bleotheoSupremeoCourtohasodefinedo theoprincipleoofounjustoenrichment.oItowasoheldothatoaopartyocannotobeounjustlyo enrichedoatotheoexpenseoofoanotheroandoitoisotheodutyoofotheoCourtsotooprevento unjustoenrichment.oo

56.o oo Ito iso alsoo noticedo thato theo Importer/o petitionero haso noto onlyo sufferedoonoaccountoofotheoadamantoapproachoofotheorespondentsobutohasoalsoo sufferedohugeoloss.oHisoreputationoinotheobusinessomarketowouldohaveoalsoo sufferedoasoheomustonotohaveobeenoableotoosupplyotheogoodsotootheopeopleotoo whomoheohadopromised.oAsoperotheoinvoiceoplacedobeforeothisoCourt,oitoiso noticedothatoKiwioweighingoabouto89,420okilogramsowereoimportedotooIndiao whicho wereo ofo valueo amountingo too 80,478o USD,o whicho ifo calculatedo ino rupeesoisoapproximatelyo`o66,79,674/-,o@o`o83operoUSD.oo

57.o o Inoviewoofotheoabove,oweodirectothatotheoImporteroshouldoalsoobeo compensatedoforohisolossoproportionately.oInoD.oK.oBasuovsoStateoofoWesto Bengaloo1997o(1)oSCCo416,oHon'bleotheoSupremeoCourtohasoexaminedotheo aspectoregardingograntingoofocompensationowhileoexercisingowritojurisdictiono andoheldoasounder:-o "Thus,otoosumoup,oitoisonowoaowelloacceptedopropositionoinomosto ofotheojurisdictions,othatomonetaryooropecuniaryocompensationoiso anoappropriateoandoindeedoanoeffectiveoandosometimesoperhapso theo onlyo suitableo remedyo foro redressalo ofo theo establishedo infringementoofotheofundamentalorightotoolifeoofoaocitizenobyotheo publicoservantsoandotheoStateoisovicariouslyoliableoforotheiroacts.o Theo claimo ofo theo citizeno iso basedo ono theo principleo ofo stricto liabilityo too whicho theo defenceo ofo sovereigno immunityo iso noro availableo ando theo citizeno musto reviveo theo amounto ofo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-34-

compensationofromotheoState,owhichoshallohaveotheorightotoobeo indemnifiedo byo theo wrongo doer.o Ino theo assessmento ofo compensation,otheoemphasisohasotoobeoonotheocompensatoryoando notoonopunitiveoelement.oTheoobjectiveoisotooapplyobalmotootheo woundsoandonototoopunishotheotransgressoroorotheooffender,oaso awardingoappropriateopunishmentoforotheooffender,oasoawardingo appropriateo punishmento foro theo offenceo (irrespectiveo ofo compensation)omustobeoleftotootheocriminalocourtsoinowhichotheo offenderoisoprosecuted,owhichotheoState,oinolaw,oisodutyoboundotoo do,oThatoawardoofocompensationoinotheopublicolawojurisdictionoiso alsoo withouto prejudiceo too anyo othero actiono likeo civilo suito foro damagesowhichoisolawfullyoavailableotootheovictimoorotheoheirsoofo theo deceasedo victimo witho respecto too theo sameo mattero foro theo tortiousoactocommittedobyotheofunctionariesoofotheoState.oTheo quantumo ofo compensationo will.o ofo course,o dependo upono theo peculiarofactsoofoeachocaseoandonoostraitojacketoformulaocanobeo evolvedoinothatobehalf.oTheoreliefotooredressotheowrongoforotheo establishedoinvasiono ofotheo fundamentalo rightso ofotheocitizen,o underoheopublicolawojurisdictionois,oinoadditionotootheotraditionalo remedieso ando noto ito derrogationo ofo them.o Theo amounto ofo compensationoasoawardedobyotheoCourtoandopaidobyotheoStateotoo redresso Theo wrongo done,o mayo ino ao giveno case,o beo adjustedo againstoanyoamountowhichomayobeoawardedotootheoclaimantobyo wayoofodamagesoinoaocivilosuit."o o

58.o o InoNilabatioBeheraovsoStateoofoOrissao1993o(2)oSCCo746,otheo Apexo Courto heldo thato Higho Courto haso powero undero Articleo 226o ofo theo ConstitutionoofoIndiaotooawardocompensation.oo

59.o o InoaorecentojudgmentopassedoinoSatyanandoSinghovsoUnionoofo Indiaoandoothersoo2024oINSCo236,otheoApexoCourtoheldoasounder:-o "18.o oTheo Constitution,o throughoitso Preamble,o guaranteesotoo alloitsopeopleo'Justice',oinotheodeliveranceoofowhich,otheoCourtso ofo theo lando haveo developedo ao nuancedo compensatoryo CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-35-

jurisprudenceo througho ao catenao ofo judgments,o foro ao wideo compassoofosituations.o

19.oo Thiso Court,o towardso theo endo ofo theo lasto centuryo heldo inoD.K.oBasuov.oStateoofoWestoBengalo(1997)o1oSCCo416othat:o "54.o Thus,o too sumo up,o ito iso nowo ao well-acceptedo propositionoinomostoofotheojurisdictions,othatomonetaryooro pecuniaryocompensationoisoanoappropriateoandoindeedoano effectiveoandosometimesoperhapsotheoonlyosuitableoremedyo foro redressalo ofo theo establishedo infringemento ofo theo fundamentalo righto too lifeo2023o SCCo OnLineo SCo 1220o(1997)o1oSCCo416oofoaocitizenobyotheopublicoservantso andotheoStateoisovicariouslyoliableoforotheiroacts."o

20.o InoP.S.R.oSadhananthamov.oArunachalamo(1980)o3oSCCo 141,o thiso Courto whileo emphasisingo itso powero too doo fullo ando completeojustice,oruminated:o "6.o Theo juralo reacho ando pluralo rangeo ofo thato judicialo processotooremoveoinjusticeoinoaogivenosocietyoisoaosureo indexoofotheoversatileogeniusoofolaw-inactionoasoaodeliveryo systemo ofo socialo justice.o Byo thiso standard,o ouro constitutionalo ordero vestso ino theo summito Courto ofo jurisdictiono too doo justice,o ato onceo omnipresento ando omnipotentobutocontrolledoandoguidedobyothatorefinedoyeto flexibleocensorocalledojudicialodiscretion.oThisonidusoofo powero ando process,o whicho master-mindso theo broado observanceothroughoutotheoRepublicoofojusticeoaccordingo toolaw,oisoArticleo136."o

21.o Whileo discussingo awardo ofo 'justo compensation'o ino ao personalo injuryo case,o thiso Courto inoK.o Suresho v.o Newo Indiao AssuranceoCo.oLtd.o(2012)o12oSCCo274oohadotheooccasionotoo observeothat:o "10.o Ito iso noteworthyo too stateo thato ano adjudicatingo authority,o whileo determiningo theo quantumo ofo compensation,ohasotookeepoinoviewotheosufferingsoofotheo injuredopersonowhichowouldoincludeohisoinabilityotooleadoao fullo life,o hiso incapacityo too enjoyo theo normalo amenitieso CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-36-

whichoheowouldohaveoenjoyedobutoforotheoinjuriesoandohiso abilityotooearnoasomuchoasoheousedotooearnoorocouldohaveo earned.o Hence,o whileo computingo compensationo theo approacho ofo theo Tribunalo oro ao courto haso too beo broado based.oNeedlessotoosay,oitowouldoinvolveosomeoguessworko aso thereo cannoto beo anyo mathematicalo exactitudeo oro ao preciseo formulao too determineo theo quantumo ofo compensation.o Ino determinationo ofo compensationo theo fundamentalocriterionoofo"justocompensation"oshouldobeo inhered."o

60.o o InoanotherocaseooMahabiroandoothersovsoTheoStateoofoHaryanao 2025o INSCo 120o relatingo too compensationo undero theo criminalo lawo whereo Hon'bleo theo Supremeo Courto seto asideo theo ordero ofo convictiono ando compensationowasoawardedotootheovictim.ooo

61.o o Hon'bleo theo Supremeo Courto recentlyo ino CAo No.o 004590o ofo 2025–o Zulfiquaro Haidero vso Theo Stateo ofo Uttaro Pradesh,o decidedo ono

01.04.2025ohasoawardedocompensationotootheovictimsowhoseohousesowereo wrongfullyodemolished.oTheoCourtsoinocasesowhereothereoisodeliberateoando willfuloactionoofotheoStateooroitsofunctionariesoinodeprivingoanyopersonooughto notoshyoawayofromograntingocompensation.oKeepingoinoviewothatoinospiteoofo severaloordersopassedobyothisoCourtofororeleaseoofoperishableofruito'Kiwi',otheo respondentsodidonotoactopromptlyoandotheoentireoconsignmentoofoimportedo goodsogotoperished.oWeofindothatohugeolossohasooccurredotootheoimportero whichoneedsotoobeocompensated.oo

62.o o Inoviewoofotheoabove,oweoallowotheowritopetitionoandodirectotheo respondentso too releaseo theo amounto paido aso customo dutyo ono theo Kiwio foro importointooIndiaoalongowithointeresto@o6%operoannum.oTakingonoteoofotheo above,oweofurtherodirectothatotheopetitioner/oimporterowouldobeoentitledotoo compensationo calculatedo conservativelyo ofo `o 50o lacso aso theo Kiwio wortho CWPoNo.o9301oofo2023ooooooooooooooooooooooooooooooooooo-37-

weighingo89,420okilogramsowereodestroyedoonoaccountoofodelayoinoreleaseobyo theo respondents.o Weo haveo grantedo theo saido amounto aso theo Importero haso alreadyopaidotheosameotootheoselleroforotheoKiwioandobroughtoinoIndia.oKiwioiso aohighovaluedofruit.oTheoamountoshallobeorecoveredofromoerringoofficersoaso compensationotootheoImporter/opetitioner.o

63.o oo Beforeoweocloseotheocase,oweofindothatotheopresentocaseoisoano exampleoofored-tapismobeingofollowedobyotheogovernmentofunctionaries.oTheo sameoneedsotoobeocreasedooutoasoitowouldoresultoinodiscouragingotheoimportoofo perishableo goods.o Theo Indiano citizenso alsoo haveo ao righto too receiveo high-qualityo fruitso whicho areo availableo ino differento countries;o however,o ifo theo approach,o aso adoptedo byo theo respondents,o iso allowedo too continue,o theo importerso wouldo toeo theiro lineo ando releaseo rotteno fruits,o vegetables,o ando perishableogoodso thatohaveolostotheiro freshness,o andoultimatelyo theopublico wouldo beo theo maino sufferer.o Ao policyo needso too beo formulatedo byo theo concernedoauthoritiesosoothatotestingolabs,oshippingocompanies,oandoCustomso Authoritieso worko ino tandemo ando ano atmosphereo iso createdo soo thato theo importedogoodsoreachotheopublicoasosoonoasopossible.o

64.o o Allopendingoapplicationsostandodisposedoof.oo

65.o o Noocosts.o o o o o o o o (SANJEEVoPRAKASHoSHARMA)o o o o o o o o o oooJUDGEoo o o th4 oApril,o2025o o o o oooooooooo(SANJAYoVASHISTH)o vso o o o o o o o ooooJUDGEoo o Whetherospeaking/reasonedo o Yes/Noo Whetheroreportableo o o Yes/Noo