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Waehouse charges are to be cleared till custom clearance

Raj Kumar Makkad ,
  20 April 2010       Share Bookmark

Court :
Bombay High Court
Brief :
Customs - Writ Petition - Demand- Demurrage charges - Consignment was stored at the warehouse of Respondent-Delay in removal of consignment was because of delay in assessment by Customs Authority- Hence, petitioner sort for waiver the warehouse charges in terms of Clause 59 of the General Terms and Conditions of Storage- Respondent declined to waive the warehouse charges- Impugned Order of Bombay High Court directed that in the event of respondent declining to waive the warehouse charges, respondent shall compute the warehousing charges payable after taking into consideration the detention certificate to be issued by Customs Authorities- There was a delay in sending of letters with the computed amounts by the Respondent - Whether aforementioned letters can be quashed and Respondent directed to release consignment of petitioner upon payment of any legitimate amount?
Citation :
Appollo Paper Mills Ltd. v. Central Warehousing Corporation and Ors. (Decided on 26.02.2010) MANU/DE/0518/2010
Held, Bombay High Court has considered the issues concerning liability of the respective parties and its Judgment is final and binding on the parties. Respondent's inaction has resulted in severely prejudicing not petitioner but itself also. Calculation as submitted by petitioner of the storage charges due is consistent with Impugned Judgment of Bombay High Court. Amounts deposited pursuant to impugned Interim Order to be refunded after deducting the amount due to respondent as calculated by petitioner. Writ Petition allowed.

 
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Published in Corporate Law
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