Bank Guarantee Released: Detention Order Set Aside in Related Case
Summary in Key Points:
Issue: Should the bank guarantee furnished by the consignee for the release of detained goods be released, given that the related demand and penalty order against the consignor has been set aside?
Facts: The consignee filed a writ petition challenging the detention of goods. Meanwhile, the consignor successfully challenged the demand and penalty order related to the same goods. The consignee had provided an unconditional bank guarantee to obtain an interim order in their writ petition.
Decision: The court ordered the release of the bank guarantee to the consignee or their authorized agent upon presentation of a certified copy of the order.
Important Note: This decision demonstrates the court’s proactive approach to resolving related disputes and preventing unnecessary financial burden on taxpayers. Since the underlying demand and penalty order against the consignor was set aside, the continued detention of the goods and the associated bank guarantee became irrelevant. By ordering the release of the bank guarantee, the court ensured that the consignee was not unfairly penalized due to a separate but related legal challenge. This ruling highlights the importance of considering the broader context of related cases and ensuring that judicial decisions are consistent and fair to all parties involved.