In Brief
Two importers of cold rolled steel coils challenged Customs detention of their goods as illegal and sought waiver of demurrage and detention charges. The High Court accepted these claims and directed the Port Trust to waive demurrage and DRI to pay detention charges, finding the officials acted in bad faith. The Supreme Court reversed this, holding that a Major Port Trust's statutory right to levy demurrage under the Major Port Trusts Act cannot be affected by subordinate Customs regulations. Even when Customs detention is improper, importers must pay demurrage and seek reimbursement. Demurrage liability exists independently of fault, to incentivize cargo clearance. DRI/Customs liability arises only upon proof of absolute mala fides or gross abuse. Here, both parties delayed; no clear mala fides was found. The appeals were allowed and the writ petitions dismissed.
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