{"id":114709,"date":"2009-08-13T00:00:00","date_gmt":"2009-08-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/transocean-shipping-agency-pvt-vs-the-collector-of-customs-on-13-august-2009"},"modified":"2016-09-05T03:48:49","modified_gmt":"2016-09-04T22:18:49","slug":"transocean-shipping-agency-pvt-vs-the-collector-of-customs-on-13-august-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/transocean-shipping-agency-pvt-vs-the-collector-of-customs-on-13-august-2009","title":{"rendered":"Transocean Shipping Agency Pvt. … vs The Collector Of Customs … on 13 August, 2009"},"content":{"rendered":"
Bombay High Court<\/div>\n
Transocean Shipping Agency Pvt. … vs The Collector Of Customs … on 13 August, 2009<\/div>\n
Bench: F.I. Rebello, D.G. Karnik<\/div>\n
                                                   1\n\n    abs\n\n                                 IN THE HIGH COURT OF JUDICATURE AT BOMBAY\n\n\n\n\n                                                                                        \n                                    ORDINARY ORIGINAL CIVIL JURISDICTION\n\n\n\n\n                                                                \n                               WRIT PETITION NO. 1983 OF 1992\n\n          Transocean Shipping Agency Pvt. Ltd.                                   ..  Petitioners\n\n\n\n\n                                                               \n                V\/s\n          The Collector of Customs (Prevention) & Ors.                           .. Respondents\n\n\n\n\n                                                  \n                                   \n          Mr. D.C. Gomes for the Petitioner.\n                                  \n          Mr. P.S. Jetly with Mr. Rohit B. Pardeshi for the respondents.\n                 \n\n                                        CORAM :  FERDINO I. REBELLO & D.G. KARNIK, JJ.\n<\/pre>\n
                                     DATE     : 13TH AUGUST 2009<\/p>\n
          Judgment : (Per D.G. Karnik, J.)<\/p>\n
          1.    By   this   petition,   the   petitioners   seek   an   order   of   injunction <\/p>\n
          restraining the respondents from recovering the penalty from them of <\/p>\n
          Rs.5,00,000\/- imposed on the Second Officer of the Russian Vessel m.v.\n<\/p>\n
          YELENA   STASOVA   (for   short   “the   vessel”)   and\/or   by   encashing   the <\/p>\n
          bank guarantee and other incidental reliefs.\n<\/p>\n
          2.    The petitioners are the agents of the said vessel which entered <\/p>\n
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\n                                                2<\/span><\/p>\n
    the Port of Bombay on 3rd February 1991.  On the basis of intelligence <\/p>\n
    received, on 9th February 1991 the Directorate of Revenue Intelligence, <\/p>\n
    Bombay Zonal Unit rummaged the vessel at 3, Indira Docks, Bombay <\/p>\n
    and found on board contraband material, namely 25 Silver bars and 25 <\/p>\n
    small white silver bars.   The vessel was detained and the petitioners <\/p>\n
    were called upon to furnish a bond with bank guarantee in the sum of <\/p>\n
    Rs.62,00,000\/- for release of the vessel as per the draft of the format <\/p>\n
    provided by the Directorate.  The petitioners contended that they were <\/p>\n
    not obliged to furnish a bond or a bank guarantee in the form furnished <\/p>\n
    by  the Directorate and,  in any event  were  not required to  furnish a <\/p>\n
    bond for recovery of the penalty, if any, which may be imposed on any <\/p>\n
    officers of the ship. The respondents, however, insisted that the vessel <\/p>\n
    will   not   be   allowed   to   sail   from   the   Bombay   Port   unless   the   bank <\/p>\n
    guarantee   was   furnished   and,   therefore,   the   petitioners   were <\/p>\n
    constrained  to  furnish  a bank guarantee  of Rs.62,00,000\/-.   A show <\/p>\n
    cause  notice  on  29th  May 1991 to  the  petitioners,  the  Master of  the <\/p>\n
    vessel, the vessel’s agent in Singapore and Mr. Yogorov Aleksandr, the <\/p>\n
    Second Officer who was alleged to have put the silver bars on board, to <\/p>\n
    show   cause   why   the   vessel   should   not   be   confiscated   under   section <\/p>\n
    115(2) of   the  Customs  Act,  1962  (for short  “the  Act”) and  why the <\/p>\n
    contraband silver bars be not confiscated under section 111(d) of the <\/p>\n
    Act.     After  the   usual   hearing,   by  an   order  dated  15th  July  1992   the <\/p>\n
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\n                                                 3<\/span><\/p>\n
    Collector of Customs ordered confiscation of the contraband silver bars <\/p>\n
    and imposed a personal penalty of Rs.5,00,000\/- on Mr. Aleksandr, the <\/p>\n
    Second   Officer   under   section   112(1)(i)   of   the   Act.     The   Collector, <\/p>\n
    however,   held   that   the   vessel   was   not   liable   for   confiscation   under <\/p>\n
    section   115   of   the   Act   and   ordered   its   release   to   the   owners,   i.e. <\/p>\n
    principles  of the petitioners.   The Collector also did not impose  any <\/p>\n
    penalty on the Master of the vessel or the petitioners.  As the vessel had <\/p>\n
    sailed   along   with   the   Second   Officer   Mr.   Aleksandr,   the   attempt   to <\/p>\n
    recover  penalty  of  Rs.5,00,000\/-  from him has failed.    The  Customs <\/p>\n
    Authority, however, sought to recover the penalty by encashment of the <\/p>\n
    bank guarantee given by the petitioners for release of the said vessel.\n<\/p>\n
    The   petitioners   have   approached   this   Court   for   injuncting   the <\/p>\n
    respondents   from   encashing   the   bank   guarantee   for   recovery   from <\/p>\n
    them of the penalty imposed on the Second Officer and also for return <\/p>\n
    of the bank guarantee duly cancelled.\n<\/p>\n
    3.     The Collector by his order dated 15th July 1992 has held that the <\/p>\n
    contraband silver bars were loaded onto the vessel by Mr. Aleksandr <\/p>\n
    without the knowledge and consent of the owner or the Master of the <\/p>\n
    ship. It is for this reason that the Collector did not impose a penalty of <\/p>\n
    confiscation of the vessel and did not impose any fine on the owner or <\/p>\n
    the Master of the ship.   The Collector has further held that the goods <\/p>\n
                                                             ::: Downloaded on – 09\/06\/2013 14:53:20 :::<\/span>
\n                                                4<\/span><\/p>\n
    were   loaded   by   the   Second   Officer   Mr.   Aleksandr   without   the <\/p>\n
    knowledge, consent or connivance of the owner or the Master of the <\/p>\n
    ship and he alone was liable to pay the penalty.   It is therefore clear <\/p>\n
    that   under   the   order   of   the   Collector,   the   penalty   imposed   on   the <\/p>\n
    Second Officer Mr. Aleksandr cannot be recovered from the owner or <\/p>\n
    the Master of the ship.  Consequently, the petitioner, who is an agent of <\/p>\n
    the owner, is also not liable to pay the penalty imposed on the Second <\/p>\n
    Officer.\n<\/p>\n
    4.     Learned counsel for the respondents however submitted that the <\/p>\n
    respondents were entitled to recover the penalty from the petitioners <\/p>\n
    on the basis of the bond given by them for release of the ship.  Reliance <\/p>\n
    is placed on clause (e) of the bond which reads as under:\n<\/p>\n
           “(e) THE OBLIGOR (i.e. the petitioner) shall pay the fine, <\/p>\n
           penalty and\/or other incidental charges, if any, imposed on <\/p>\n
           and\/or due from them or any crew member under the order <\/p>\n
           in adjudication passed by the said Collector of Customs in <\/p>\n
           the subject proceedings.”\n<\/p><\/blockquote>\n
\n<\/blockquote>\n
    Counsel   for   the   respondents   submitted   that   the   bond   was   an <\/p>\n
    independent contract entered into by the petitioners with the Customs <\/p>\n
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\n                                                5<\/span><\/p>\n
    Authorities and they are liable under the bond to pay the penalty.\n<\/p>\n
    5.     Per contra, learned counsel for the petitioners submitted that the <\/p>\n
    bond was obtained from the petitioners under pressure and coercion by <\/p>\n
    detaining   the   vessel.     The   petitioners   were   required   to   give   a   bank <\/p>\n
    guarantee for the release of the vessel only for securing payment of any <\/p>\n
    fine imposed on the vessel or at the most on the owner or the Master of <\/p>\n
    the ship.  They were not liable to give bond for payment of any fine or <\/p>\n
    penalty that might be imposed on any crew member for any illegal and <\/p>\n
    clandestine act under the Customs Act.  However, the bond was forcibly <\/p>\n
    taken under threat of detaining the vessel and not releasing it.  In the <\/p>\n
    circumstances,   the   counsel   submitted   that   the   bond   could   not   be <\/p>\n
    enforced against the petitioners for recovery of penalty imposed not on <\/p>\n
    them but on Mr. Aleksandr, the Second Officer.  In support, the counsel <\/p>\n
    referred to and relied upon a decision of this Court in Hongkong Island <\/p>\n
    Shipping Co. Ltd. v. Additional Collector of Customs (Preventive),<\/a> 1986  <\/p>\n
    (26) ELT 35 (Bom.).\n<\/p>\n
    6.     In Hongkong Island Shipping Co. Ltd. (supra), the contravening <\/p>\n
    goods   were   found   in   a   cupboard   in   the   ship.     The   adjudicating <\/p>\n
    authority did not disbelieve the words of the Captain of the ship that <\/p>\n
                                                            ::: Downloaded on – 09\/06\/2013 14:53:20 :::<\/span>
\n                                                 6<\/span><\/p>\n
    they were kept there without his knowledge.  The Customs Authorities <\/p>\n
    insisted   on   a   similar   bond   to   be   obtained   from   the   ship   owners <\/p>\n
    undertaking the liability to pay the fine or the penalty imposed or due <\/p>\n
    from any crew member after the order of adjudication.  This Court held <\/p>\n
    that though the Customs Authorities had secured the bond of the ship <\/p>\n
    owners, it would not be appropriate to provide for recovery from the <\/p>\n
    owners   of   fine   or   penalty   imposed   on   any   crew   member   under   the <\/p>\n
    adjudication proceedings if the contraband articles were brought on the <\/p>\n
    ship without the knowledge or connivance of owner or the Master of <\/p>\n
    the ship in spite of reasonable precaution taken by them.  In our view, <\/p>\n
    in the present case, without going into the contention of the petitioners <\/p>\n
    that the bond was obtained from them by force for securing the liability <\/p>\n
    for   payment   of   penalty,   if   any,   imposed   on   the   crew   member   for <\/p>\n
    bringing in the goods without the knowledge and connivance of the <\/p>\n
    Master or owner of the ship, the petition would have to be allowed <\/p>\n
    following  the   decision   of   this  Court   in   the   case   of   Hongkong   Island <\/p>\n
    Shipping Co. Ltd. (supra). According to the petitioners, they executed <\/p>\n
    the bond in view of the decision of this Court that they would not be <\/p>\n
    liable for payment of penalty which may be imposed on a member of <\/p>\n
    crew   (in   this   case   Second   Officer   Mr.   Aleksandr)   for   his   illegal   acts <\/p>\n
    made without the knowledge or connivance of the owner or the Master <\/p>\n
    of the ship.  The decision of this Court was rendered in the year 1986 <\/p>\n
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\n                                              7<\/span><\/p>\n
    and has been accepted by the Customs Authorities and has not been <\/p>\n
    appealed against.  Relying on that decision and believing that the bond <\/p>\n
    would   not   be   enforced   against   them   for   recovery   of   any   penalty <\/p>\n
    imposed not on them but a crew member, they executed the bond.  In <\/p>\n
    view of this, the respondents are not entitled to recover the amount of <\/p>\n
    penalty   imposed   on   the   Second   Officer   Mr.   Aleksandr   from   the <\/p>\n
    petitioners on the basis of a bond.\n<\/p>\n
    7.<\/p>\n
          In view of what is stated above, the petition succeeds.   We are <\/p>\n
    informed   that   in   lieu   of   extension   of   bank   guarantee   the   amount <\/p>\n
    thereof has been deposited in this Court and the bank guarantee was <\/p>\n
    released. If so, the petitioners are entitled to the refund of the money <\/p>\n
    so deposited together with interest, if any, accrued if the money has <\/p>\n
    been invested.\n<\/p>\n
    6.    For   these   reasons,   the   Rule   is   made   absolute   to   the   extent <\/p>\n
    indicated above.   The amount shall be refunded to the petitioners on <\/p>\n
    production of a certified copy of this order.\n<\/p>\n
    (D.G. KARNIK, J.)                                     (FERDINO I. REBELLO, J.)\n\n     \n\n\n\n                                                         ::: Downloaded on - 09\/06\/2013 14:53:20 :::<\/span>\n <\/pre>\n","protected":false},"excerpt":{"rendered":"
Bombay High Court Transocean Shipping Agency Pvt. … vs The Collector Of Customs … on 13 August, 2009 Bench: F.I. Rebello, D.G. Karnik 1 abs IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 1983 OF 1992 Transocean Shipping Agency Pvt. Ltd. .. Petitioners V\/s The Collector of Customs […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11,8],"tags":[],"class_list":["post-114709","post","type-post","status-publish","format-standard","hentry","category-bombay-high-court","category-high-court"],"yoast_head":"\nTransocean Shipping Agency Pvt. ... vs The Collector Of Customs ... on 13 August, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/transocean-shipping-agency-pvt-vs-the-collector-of-customs-on-13-august-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Transocean Shipping Agency Pvt. ... vs The Collector Of Customs ... on 13 August, 2009 - 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