Chandigarh: The Punjab and Haryana High Court has overshadowed the Customs Department and a private shipping company, directing them to return the customs with six percent interest and pays Rs 50 lakh to an importer, M/s Prenda Creation Private Limited as compensation.
The petitioner importer suffered a massive damage after a consignment of 89,420 kg of kiwi fruit, which was imported from Chile to Dubai, due to delays extending over three months in 2023.
On 4 April 2025, the order of the Higher, High Court reveals apathy, procedural obstacles, and the saga of disregard of judicial instructions, which leaves the importer with high and more than Rs 66 lakh items, which is disqualified for human consumption.
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In a scary judgment, the bench, which includes Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisath, placed customs officers in Mundra and Ludhiana with shipping firm M/S Transaller Maritime Private. Ltd., accountable to the objects essential for their “lackist approach” and “insensitivity”.
The 37-page decision of the court was reserved on 16 December 2024 and pronounced on Friday, not only relieves the petitioner, but also seems to have a clear call for systemic reforms to ensure handling on time of disabled imports.
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Poor kiwi saga
The ordinance began in April 2023 when the prime creeds, a company, which was engaged in importing foods at ports in Mumbai, Mundra, New Delhi and Ludhiana, brought to four refrigerated containers of Kiwi from RA Logistics and Distribution LLC, Dubai.
The price of US $ 80,478 (about 66 lakh rupees) was sent with a bill on 16 April 2023, which was clearly showing the final destination as Ludhiana. However, a regular imports should have been converted into a nightmare due to a series of blunders by shipping company and customs authorities.
The shipping firm filed a wrong document on 22 April 2023, which lists Mundra as the final destination instead of Ludhiana.
When Prada Creations demanded an advance bill of admission under Customs Act on 25 April 2023, the online system dismissed it due to mismatch in documents.
The company’s argument fell on the deaf ears to amend the address and allow a manual bill of entry, the customs officials in the Mundra claimed that only the shipping line improved – a stance held in the court is contrary to Section 30 (3) of the Customs Act, 1962, which allows the authorities to amend the documents if there is no fraud.
As Kiwi dull in Mundra, Prada Creations contacted the High Court on 9 May 2023, which provided immediate relief.
The court ordered the goods to be transferred to Ludhiana and allowed a manual bill of admission, but the saga was over.
The shipping company defines the court orders, the consignment was taken to Saurashtra Freight Private Private. Ltd., a feature that lacks rail connectivity for Ludhiana, further prevents this process.
Only after judicial interventions, including an contempt warning on 7 June 2023, went to Ludhiana only by 31 May 2023.
Even after reaching Ludhiana, Kiwi faced another road. Customs officials raised doubts about its origin, alleging that it came from Iran instead of Chile. This objection was raised despite the export declaration certificate from Dubai customs.
The court directed an inquiry, but not before the goods tested by the Plant and Quick Department, which on 4 July 2023, proved them free from pathogens. Nevertheless, the Customs Department pulled its feet, detained the batch and ordered its exile on 4 July 2023 – an order was directed by the court to immediately release.
By 27 July 2023, a joint inspection revealed that 20–25 percent of the kiwi was damaged, but by the time the consignment was released on 1 August 2023, the rot was completed.
A fruit dealer, a disposal certificate of Veer Singh & Brothers, confirmed that all 89,420 kg were “disqualified for human consumption” and destroyed, with photos and videos presented as evidence.
The petitioner paid customs duty under the protest, blaming the delay of the respondents and demanded refund and compensation for the loss.
The High Court rejected the rescue of the Customs Department that Section 26A (3) of the Customs Act refunded for the goods that deteriorate during their shelf life. In this case, the law was inappropriate because the court held the results of their failures due to malfunction.
The bench said, “Respondences have obstructed themselves in the release of spoiled items,” accusing the useless goods of demanding “unjust enrichment” while maintaining duty.
The bench, claiming its constitutional powers under Article 226, ordered the return of customs with six percent interest, in view of the loss of import of reputation and business, as customs duty with customs duty with customs duty. “The amount will be recovered from the wrong authorities,” the court decided, indicating accountability for Fiysco. It also disturbed the “invalid approach” of the respondents, warning that such practices could prevent importers and deprive Indian consumers of quality perishbals.
(Edited by Ridififa Kabir)