AIRPORTS AUTHORITY OF INDIA Vs. DEEPAK INDUSTRIES LTD

JUDGEMENT

(1.) The present appeal is directed against a judgment of the learned Single Judge dated 07.02.2005 decreeing the suit filed by M/s. Deepak Industries Ltd. (hereafter called the plaintiff), to the extent of Rs. .13,37,586/-, with interest @ 10% compounded quarterly from 23.12.1999 till payment.

(2.) The plaintiff had filed a suit for recovery of Rs. .35,25,000/-, alleging that it imported goods under three invoices. Pending assessment and payment of Customs Duty, the goods were warehoused by the appellant, i.e. Airports Authority of India (hereafter called the AAI ). It was discovered later that the goods were misplaced or stolen. It is alleged that the plaintiff had made payments to the foreign supplier for the consignment and even paid Customs Duty in respect of one consignment. The plaintiff had claimed not only the value of goods, including the Customs Duty and Interest for certain period but also damages on account of loss of reputation. The suit had impleaded AAI and the Customs authorities. The Customs authorities, impleaded as second defendant, were ex-parte. The plaintiff had, while making several allegations against the second defendant, carefully chosen not to claim any relief.

(3.) The AAI denied its liability. It had contended that the plaintiff had misappropriated the consignment in question in collusion with its agents and some other employees in and around the airport. The written statement also pointed-out that the consignment dated 25.09.1997 was taken-up and a Customs Examination Order was made on 24.10.1997. Yet the plaintiff approached the authority on 20.05.1998 when the assessed amount was deposited. It was stated that the consignment could not be found or traced despite all efforts to trace it. AAI alleges that the matter was reported to the police but there was no progress due to deliberate non-cooperative attitude of the plaintiff. As regards the consignment dated 21.07.1997 covered by the Bill of Entry dated 14.08.1997 (No.5677443), produced as Ex.PW-1/47, it was stated that the Examination Order was made on 16.08.1997 but at no stage did the plaintiff approach the defendants for requisitioning the consignment for examination and there was no activity record in the authority s computer systems supporting the claim. Similarly, it received the consignment which landed on 18.10.1997 (Ex.PW-1/70). It is submitted that the Bill of Entry was filed as late as on 24.08.1998. This consignment too could not be traced despite all best efforts and a report to the police was filed for detailed investigation.