High Court orders Rs 50 lakh relief to Ludhiana importer for perished Kiwi consignment

Calling for a coordinated national policy to ensure timely release of perishable imports, the Punjab and Haryana High Court has directed payment of Rs 50 lakh compensation to a Ludhiana-based importer whose Kiwi consignment weighing 89,420 kilograms was destroyed due to red-tapism and bureaucratic delay. The court ordered compensation’s recovery from the erring government officers responsible for the loss.

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“A policy needs to be formulated by the authorities concerned so that testing labs, shipping companies, and customs authorities work in tandem and an atmosphere is created so that the imported goods reach the public as soon as possible,” the Division Bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth asserted.

Holding the delay as an instance of bureaucratic obstruction, the court added: “We find that the present case is an example of red-tapism being followed by the government functionaries. The same needs to be creased out as it would result in discouraging the import of perishable goods.”

The judgment came on a petition filed by a company with registered office in Ludhiana through Advocate Saurabh Kapoor. The Bench asserted it was satisfied that the respondent-custom department wrongfully and illegally withheld the perishable food item. “We noticed that in import cases of perishable goods there is an inherent urgency which needs to be noticed and considered by the concerned stakeholders. In the facts of the present case, we find that there has been huge delay in compliance of the procedure,” the court observed.

The Bench made it clear that the official apathy in releasing perishable food items had a direct bearing on citizens’ rights and public health. “The Indian citizens also have a right to receive high-quality fruits which are available in different countries. However, if the approach, as adopted by the respondents, is allowed to continue, the importers would toe their line and release rotten fruits, vegetables, and perishable goods that have lost their freshness, and ultimately the public would be the main sufferer.”

Strongly affirming the principle of accountability, the Bench observed: “The courts, in cases where there is deliberate and wilful action of the State or its functionaries in depriving any person, ought not shy away from granting compensation.” The Bench noted that the respondents did not act promptly despite several orders passed for release of the perishable fruit, resulting in complete destruction of the consignment.

Allowing the writ petition, the Bench directed the Union of India and other respondents to release the amount paid as custom duty on the Kiwi for import, along with interest 6 per cent per annum interest. The court fixed the compensation at Rs 50 lakh after taking into account the fact that the consignment—comprising a high-value fruit—was imported after full payment had been made to the seller, but was destroyed on account of delay.