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IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
M/s Arl Infratech Let & Anr. – Appellants
Versus
Union of India & Ors. – Respondents
W.P.(C) 920 of 2023
Decided On : 22-02-2023
Government Advisories - Charges during Covid-19 Pandemic - Code of Civil Procedure, 1908 - Section 25 - Writ Petition - Transfer of Proceedings - High Court of Gujarat at Ahmedabad - High Court of Delhi at New Delhi - Container Freight Station Association of India Vs. M/s. ARL Infratech Limited & Ors. - W.P.(C) 3029/2020 - Polytech Trade Foundation v. Union of India & Ors.
Fact of the Case:
The petitioners sought relief from charging ground rent, demurrage, and container detention charges during the Covid-19 pandemic, citing Government advisories. The Supreme Court transferred the proceedings from the High Court of Gujarat at Ahmedabad to the High Court of Delhi at New Delhi.
Finding of the Court:
The court found that the issues raised were covered by a judgment in a related case, where the petitioners' prayers for amnesty from penal charges were rejected. The court dismissed the writ petition in line with the previous judgment.
Issues: The issues revolved around the legality of charging various fees during the pandemic period, and the applicability of Government advisories in this context.
Ratio Decidendi: The court held that the petitioners' request for across-the-board amnesty from penal charges was not feasible, as it involved disputed questions of fact and was not amenable to adjudication under Article 226 of the Constitution of India. The court also considered the impact on the importers and exporters, as well as the public interest in unclogging ports.
Final Decision: The writ petition was dismissed in line with the previous judgment, as the issues were found to be squarely covered.
JUDGMENT
Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode.
2. The present petition was, initially, filed in the High Court of Gujarat at Ahmedabad as Special Civil Application No. 9046/2020 titled `M/s ARL Infratech Limited & Promod Jain vs Union of India & Ors.'. The case of the Petitioner is that the ground rent, demurrage and other detention charges ought not to be charged as the same would be contrary to the various Government advisories issued during the Covid-19 pandemic. The prayers sought in the petition are as under:
"(A) YOUR LORDSHIPS may be pleased to issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction holding the action of the concerned Respondents in charging the ground rent, demurrage and container detention charges, as illegal and contrary to Government advisories.
(B) YOUR LORDSHIPS may be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction directing the Respondents Nos.5 to 8 to return/restitute to the Petitioner Company amounts charged and recovered towards ground rent, demurrage and container detention charges being Rs.53,77,971/- along with interest @ 12% as the same have been charged contrary to the directions and advisories of the Central Government.
(C) Pending hearing and final disposal of this petition. YOUR LORDSHIPS may be pleased to direct the Respondents Nos.5 to 8 to forthwith payback/return to the Petitioner Company amounts charged and recovered by them as ground rent, demurrage and container detention charges, etc. on such conditions as this Hon'ble Court deems fit.
(D) Any other/further relief/s as may deem fit in the facts of the case may kindly be granted."
A transfer petition was preferred by the Respondent no.4 before the Supreme Court. In the said petition, viz., Transfer Petition (Civil) No. 1173 of 2020, titled `Container Freight Station Association of India Vs. M/s. ARL Infratech Limited & Ors.', the Supreme Court held as under:
"1. This transfer petition has been filed by the petitioner under Section 25 of the Code of Civil Procedure, 1908 seeking transfer of Special Civil Application No 9046 of 2020 titled "M/s ARL Infratech Limited vs Union of India & Others" from the High Court of Gujarat at Ahmedabad to the High Court of Delhi at New Delhi.
2. We have heard learned counsel for the parties.
3. Counsel appearing on behalf of the respondents state that the respondents have no objection to the transfer of these proceedings.
4. Having regard to the interests of justice, we are of the view that an order for the transfer of the proceedings is warranted. We direct that Special Civil Application No 9046 of 2020 titled "M/s ARL Infratech Limited vs Union of India & Others" be transferred from the High Court of Gujarat at Ahmedabad to the High Court of Delhi at New Delhi.
5. The Transfer Petition is accordingly disposed of.
6. The transferor court shall forthwith transmit the record of the aforesaid case to the transferee court.
7. Pending application(s), if any, shall stand disposed of."
3. Pursuant to the said order, the writ petition has been listed before this Court.
4. None appears for the Petitioners. Ld. Counsel for the Respondent Nos. 4 to 8-Mr. Udit Jain submits that the issues raised in this petition relate to various charges which were collected by the container freight stations (`CFSs') during the pandemic period. As per the Petitioners, the said issue is now squarely covered by a judgment rendered by the Division Bench of this Court in W.P.(C) 3029/2020 titled `Polytech Trade Foundation v. Union of India & Ors.', [10th August 2021].
5. In the said case along with other connected cases, the ld. Division Bench of this Court has dealt with identical issues and has arrived at its conclusions qua each of the aspects. The prayer for not charging ground rent, demurrage and detention charges has already been rejected. Thus, no recovery t
The court emphasized that disputed questions of fact and the impact on public interest must be considered in determining the legality of charges during the pandemic period.
Governmental directives cannot impede the contractual rights of private entities concerning detention and demurrage charges during lockdown, as per established legal and regulatory frameworks.
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