2024 Supreme(Online)(KER) 56705
HIGH COURT OF KERALA
C.S. DIAS, J
M/S AIYER SHIPPING AGENCY PVT LTD – Appellant
Versus
UNION OF INDIA – Respondent
WP(C) NO. 36030 OF 2024
For the Appellants/Petitioners: SRI.AMAL JEES ALEX, SRI.P.A.GIREESH KUMAR, SRI.PAUL BASE
For the Respondents: SRI.SUVIN R MENON, SMT.SREEKALA KRISHNADAS, SRI.SAJI VARGHESE T. G, SMT.MARIAM MATHAI, SRI.C.VIVEK, SMT.RAKHI RAMACHANDRAN, SRI.JOMY JOHNY, SMT.FADHI RAHMAN, SR.GP.SMT.DEEPA NARAYANAN, SRI.SUNILKUMAR KURIAKOSE, GP
Lack of privity of contract prevents the 6th respondent from interfering with the movement of the petitioner’s containers.
Headnote:The court reviewed the statute under Article 226 of the Constitution of India, addressing the issue of police protection for the petitioner to remove containers obstructed by the 6th respondent. It was concluded that the 6th respondent lacks legal right to withhold the containers due to a lack of privity of contract and no dues from the petitioner. The primary issues revolved around the legal rights regarding the movement of freight transport on the grounds of existing contractual obligations and the clear mandates of prior orders. Ultimately, an order was issued to provide police protection for the removal of containers, to be completed within one week of judgment delivery.
| Table of Content |
|---|
| 1. police protection for container removal. (Para 1 , 2) |
| 2. court hears arguments from all parties. (Para 3) |
| 3. conditions for interim direction clarified. (Para 4 , 5) |
| 4. legal rights assessed regarding container obstruction. (Para 6 , 8) |
| 5. final direction for police assistance issued. (Para 7 , 9) |
JUDGMENT
Dated this the 13th day of December, 2024 The writ petition is filed, inter alia, to direct the respondents 1 and 3 to provide necessary police protection to the petitioner to remove the laden and empty containers from the Container Freight Station (CFS), Ernakulam.
2. The petitioner is an agent of an Overseas Shipping Company and is engaged in the business of providing lading, shipping and logistical support service to Overseas Container shipping companies operating through the ports in India. The containers managed by the petitioner are stored at the CFS managed by the 5th respondent. The 5th respondent has taken the CFS on lease from the 6th respondent, who in turn has an agreement with 4th respondent for the operation and management of the yard. Due to differences of opinion between the respondents 5 and 6, the 6th respondent is obstructing the movement of the containers from the CFS, which is causing significant delay and monetary loss to the petitioner. By orders in WP(C)Nos.28682/2024 and 32035/2024 this Court has directed the 6th respondent to clear the obstruction and allow the smooth flow of freight transport from the CFS. The petitioner has no privity of contract with the 6th respondent. The petitioner had entered into the contract only with the 5th respondent. There are no dues payable by the petitioner to the 6th respondent. The obstruction caused by the 6th respondent is illegal and arbitrary. Hence, this writ petition.
3. Heard; the learned counsel for the petitioner, the learned Deputy Solicitor General of India, the learned Government Pleader and the respective counsel appearing for the respondents 5 and 6 .
4. When the writ petition came up for consideration, on 15.10.2024, this Court passed the following interim direction:-
“(i) The petitioner shall pay the amounts payable as per the invoices, if any pending, by remitting the same before the Registry of this Court in the form of a Demand Draft. The petitioner shall furnish the ledger folios pertaining to respondents 5 and 6 from 01.04.2024 onwards.
(ii) On the above condition being satisfied, the containers belonging to the petitioner shall be permitted to be taken out from the MIV yard of the 6th respondent.
(iii) If outward movement of the containers is obstructed, inspite of the petitioner complying with the above directions, the 3rd respondent shall intervene and do the needful.”
5. Subsequently, on 12.11.2024, this Court clarified that if the petitioner cannot produce the invoices in respect of the payments to be effected and if no payment is due, letters/certificates to that effect be produced.
6. When the writ petition subsequently came up for consideration, the learned counsel for the 5th respondent submitted that there is no amount payable by the petitioner as on 30.07.2024. The 5th respondent has filed an affidavit to the above effect.
7. On a consideration of the facts and materials placed on record, it is an undisputed fact that the 6th respondent has filed MAARB No.160/2024 before the Commercial Court, Ernakulam, against the 5th respondent under Section 9A of the Arbitration and Conciliation Act , (‘Act’, in short) for interim reliefs. Subsequently, the 6th respondent has also filed ARB No.246/2024 before this Court under Section 11 of the Act to appoint an arbitrator to adjudicate the disputes with the 5th respondent.
8. In view of the categoric statement of the
5th respondent that no amount is due from the petitioner, the interim orders passed by this Court and since there is no privity of contract between the petitioner and the 6th respondent, I am of the definite view that the 6th respondent has no legal right to withhold the containe