Article 226 not Applicable for Resolving Private Disputes Over Released Goods by Customs Dept: Madras HC [Read Order]

The Court stated that it cannot adjudicate private disputes or compel the release of goods already cleared by the Customs Department
Resolving Private Disputes - Customs Dept - Madras HC - Madras High Court - Constitution of India - Madurai bench of Madras High Court - court - High Court - civil remedies for resolution - Taxscan

Article 226 of the Constitution of India is not applicable for resolving the private disputes over the released goods by the customs department, ruled the Madurai bench of Madras High Court. The court dismissed the petition seeking a mandamus to enforce a demurrage waiver certificate and to direct the release of goods detained by the Customs Department.

The petitioner had imported cotton rags, which were detained by the Customs Department. Following verification, an order for the release of the goods was issued on May 8, 2024, along with a waiver of demurrage charges for 60 days. However, the petitioner claimed that the third and fourth respondents, acting as carriage agents, refused to release the goods. Consequently, the petitioner sought relief from the High Court under Article 226.

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The Senior Standing Counsel for the Customs Department clarified that, as per regulations, demurrage charges are waived for 60 days post-release. Beyond this period, either the petitioner or the respondents would be liable for such charges.

The counsel for the third respondent, M/s.Goodrich Maritime Private Limited, argued that the dispute arose from a contractual agreement between private parties. They contended that the writ petition was not maintainable and that the petitioner should seek alternate remedies under civil law.

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Acknowledging the nature of the dispute as a private contractual matter, Justice Kumaresh Babu held that such issues fall outside the purview of Article 226. The Court stated that it cannot adjudicate private disputes or compel the release of goods already cleared by the Customs Department. The petitioner was granted liberty to pursue civil remedies for resolution.

Accordingly, the petition was dismissed.

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