Courts cannot issue directions to service providers for waiver of demurrage charges unless the rules or relevant policy clearly mandate waiver from such services.

S. RAVINDRA BHAT, J.

1. The petitioner in this proceeding (International Lease Finance Corporation, described hereafter as "ILFC") claims a direction to the third respondent (hereafter "CELEBI" to refund demurrage amount, paid by it pursuant to directions of the court, to secure the release of its aircraft engine. CELEBI's refusal to refund the amount is based on its position that the demurrage charges were collected justly.

2. The present petition is a fourth proceeding in a series of writ petitions by ILFC. The petitioner owns and leases aircrafts had entered into a transaction with M/s Kingfisher Airlines. Kingfisher's defaults (unconnected with ILFC) led to detention of some aircrafts by various revenue authorities including the customs department, as a consequence of which, the engine of one of these aircrafts was removed (cannibalized).

3. ILFC the lessor and the owner of the aircraft, for safeguarding its interest in the craft wished to fly back the aircraft. To this end, it assisted the entry of an aircraft engine. The engine was flown in showing Kingfisher Airlines as the importer. It was immediately detained; initially by the Service Tax department, which wished to exact amounts due. Later, the service tax proceedings were dropped. The customs authorities now moved in and detained the engine. Then ILFC, (the owner of the engine) filed the W.P. (C) 2937/2013. That writ petition was disposed of by order dated 11.02.2014. To avoid deterioration of functionality of the engine, the petitioner was permitted to furnish a bank guarantee in the sum of Rs. 8 crores, of which Rs. 1 crore was to be deposited within six weeks of the order, (directing release of the engine). The Customs Authorities were enjoined to adjudicate the proceedings and pass appropriate orders. ILFC too had to comply with all the pre-conditions and necessary formalities, including filing the bill of lading to indicate its ownership. ILFC was permitted to re-export the aircraft by paying the entire amount of Rs. 17.09 crores, based upon the determination of liability of basic duty and penalty by the Customs Authorities, without prejudice to its rights. This order was made, in the course of a clarification, recorded on an application by ILFC; the order directed that after release of the engine, it "shall be allowed to be re-exported". The rights and contentions of both the parties-the Revenue and the petitioner i.e. the owner of the engine, were kept open. The order dated 28.07.2014 further stated that:

"It is also pertinent to note that since the passing of the order dated 11.02.2014 the Commissioner of Customs had also delivered his adjudication order on 25.06.2014 whereby the total demand of Rs. 17,09,48.420/- has been raised on account of custom duty, penalty, redemption filed and interest calculated as of today. Furthermore, CELEBI who has been impleaded as Respondent no. 6 has claimed a demurrage of Rs. 6.5 crores as of today. Mr. Sethi, Learned Senior Counsel appearing on behalf of the petitioner/applicant, submits that he may be permitted to release aircraft engine for re-export on the petitioners paying the entire amount of Rs. 17,09,48,420/- as well as the demurrage charges to CELEBI but without prejudice to the right to contest the same before appropriate fora. For this purpose, Mr. Sethi submitted that the bank guarantee of Rs. 8 crores may be encashed by- the custom authorities and the remaining amount out of Rs. 17,09,48A20l- after giving cash deposit of Rs. l crore shall be paid by Mr. Sethi's client with the Commissioner of Customs (Import & General) without prejudice to his right's and contentions. The petitioner may do so. In doing so, the aircraft engine shall be released to the petitioner without prejudice to the petitioner's right to challenge the adjudication order. CELEBI shall release the aircraft engine upon evidence that the custom dues as above has been paid and, on the petitioner's, clearing the demurrage charges which appr