Allowed

M/S. Again Mini Mart v. the Managing Director

Kerala HC20 Jul 2022WP(C)/20041/2022

Case brief

AI extract

What is this about?

Petitioner won an auction of potato powder from Kerala State Warehousing Corporation. Customs refused release fearing human consumption. Court allowed petition after petitioner's undertaking for industrial use, quashed refusal and directed release.

What did the court decide?

Communication halting release is quashed; 1st respondent directed to finalize auction and release potato powder to petitioner upon remittance of bid amount and formalities.

M/S. Again Mini Mart Vs the Managing Director — Consumer Protection | Kerala HC (2022)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE V.G.ARUN

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WEDNESDAY, THE 20^TH DAY OF JULY 2022 / 29TH ASHADHA, 1944 WP(C) NO. 20041 OF 2022

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PETITIONER/S:

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M/S. AGAIN MINI MART REPRESENTED BY ITS PROPRIETOR, RESAL JAMAL, S/O. JAMAL P.V. AGED 28 YEARS, #178-50, VYAPAR BHAVAN SHOPPING COMPLEX, CHENDAMANGALAM VILLAGE, NORTH PARAVUR TALUK, ERNAKULAM DISTRICT, PIN - 683513. BY ADVS. P.S.SUJETH M.R.REENA

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RESPONDENT/S:

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1 THE MANAGING DIRECTOR KERALA STATE WAREHOUSING CORPORATION, PETTA, POONITHURA, KOCHI - 682038. 2 COMMISSIONER OF CUSTOMS (PREVENTIVE) RUMMAGE & INTELLIGENCE DIVISION, WILLINGTON ISLAND, KOCHI - 682003. 3 ADDL.R3: THE ASSISTANT DIRECTOR FSSAI (FOOD SAFETY AND STANDARD AUTHORITY OF INDIA) FDA-BHAVAN, NEAR BALABHAVAN, KOTLA ROAD, NEW DELHI - 110002. ADDL. R3 IS IMPLEADED AS PER ORDER DATED 23.06.2022 IN IA IN WPC NO. 20041/2022. BY ADVS. SHRI.MAJNU KOMATH, SC, K.S.W.C. RAJESH KUMAR T.K

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OTHER PRESENT:

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ASGI S. MANU FOR R3

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION

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ON 20.07.2022, THE COURT ON THE SAME DAY DELIVERED THE

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FOLLOWING:

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W.P.(C) No.20041 of 2022

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JUDGMENT

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Dated this the 20^th day of July, 2022

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The petitioner had participated in an E- auction of potato powder stored by the Customs Department at the warehouse of the Kerala State Warehousing Corporation. The petitioner turned out to be the higher bidder and had expressed willingness to remit the bid amount as and when directed. As the potato powder had been imported almost twelve years back and its shelf life was over, the petitioner was called upon to submit an affidavit stating that the product will not be used for human consumption. Accordingly, petitioner filed Ext.P4 affidavit. While the petitioner was awaiting release of the potato powder, he was served with Ext.P5 communication stating that the Customs Department had informed the Warehousing Corporation not to release the

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W.P.(C) No.20041 of 2022

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auctioned product, as there is no mechanism to monitor and ensure that the potato powder will not be used for human consumption.

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After hearing the learned Counsel for

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the petitioner, the learned Standing Counsel for the Warehousing Authority and the learned Standing Counsel for the Customs, this Court had directed the petitioner to file an affidavit or undertaking to the effect that the product will not be used for human consumption. In compliance of the direction, the petitioner has filed affidavit dated 11.07.2022, the relevant portion of which reads as under;

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“It is respectfully submitted that the

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above-mentioned Potato Powder has so many other

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industrial purposes, other than the human consumption, like (1) Paper Industry used as a Binder & Polisher (2) Textile Starch (High Quality Organic) (3) Fabric Painting-as an adhesive (4) Diapers uses as Hydroscopic Agent

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W.P.(C) No.20041 of 2022

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(5) Wood Industries such as Plywood Industries uses as an Adhesive, Binder, Texture Agent and Filler etc. (6) Crude Oil Drilling Firms widely use as Drill Bit Lubricant and to wash Boreholes. There are so many industrial purposes other than the human consumption and I do hereby swear to this Honourable Court that the potato Power kept with the 1st respondent, shall be used by me only for any of the above purposes other than the human consumption, if it is released to me.”

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Indisputably, the petitioner is the successful bidder. The Warehousing Corporation has no objection in the potato powder being released to the petitioner. The apprehension

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expressed by the Customs Department is the possibility of the product being used for human consumption. The petitioner has categorically

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stated in affidavits filed before the Warehousing Corporation and this Court that the product will not be used for human consumption

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W.P.(C) No.20041 of 2022

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and is intended to be used for industrial purposes. In such circumstances, there is no justification in the refusal to release the potato powder.

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In the result, the writ petition is allowed. Ext.P5 communication is quashed and the 1^st petitioner is directed to finalse the auction proceedings and release the potato powder to the petitioner, on the petitioner remitting the bid amount and statutory formalities. The claim for storage charges, if any, shall be settled between the first and second respondents.

Sd/-

V.G.ARUN JUDGE

Scl/20.07.2022

W.P.(C) No.20041 of 2022

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PETITION	ER EXH	IBITS
Exhibit	P1	TRUE COPY OF THE DECLARATION IN RESPECT OF THE TERMS OF PARTICIPATION IN THE E-AUCTION OF POTATO POWDER FROM THE KERALA STATE WAREHOUSING CORPORATION AT POONITHURA, DATED 19.04.2021.
Exhibit	P2	TRUE COPY OF THE RECEIPT ACKNOWLEDGING THE RECEIPT OF RS. 25,000/- DATED 19.04.2021 TOWARDS THE EMD FOR PARTICIPATE IN THE E-AUCTION.
Exhibit	P3	TRUE COPY OF THE REPRESENTATION DATED 26/04/2022 SUBMITTED BY THE PETITIONER SEEKING DELIVERY OF THE GOODS.
Exhibit	P4	TRUE COPY OF THE AFFIDAVIT DATED 23/10/2021 SUBMITTED BY THE PETITIONER AS DEMANDED BY THE RESPONDENT AUTHORITY.
Exhibit	P5	TRUE COPY OF THE NOTICE DATED 04-05- 2022 ISSUED BY THE MANAGER OF CONTAINER FREIGHT STATION, POONITHURA.
Exhibit	P6	TRUE COPY OF THE TEST REPORT DATED 10/03/2021 ISSUED BY NABL ACCREDITED MICROBIOLOGY LAB AT POONIUTHURA.
Exhibit	P7	TRUE COPY OF THE CERTIFICATE OF EXAMINATION ISSUED BY THE REGIONAL ANALYTICAL LABORATORY ERNAKULAM DATED 01-06-2022.

M/S. Again Mini Mart v. the Managing Director

Case brief

What is this about?

What did the court decide?

M/S. Again Mini Mart v. the Managing Director

Case brief

What is this about?

What did the court decide?

What the court decided

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