519/2008 Suit Weave & Knit Pvt Ltd (Plaintiff) V/S Freight Systems Co. Ltd., L.L.C & Others (Defendant)

519/2008 Suit Weave & Knit Pvt Ltd (Plaintiff) V/S Freight Systems Co. Ltd., L.L.C & Others (Defendant) Sindh High Court

Bench: Hon'ble Mr. Justice Nazar Akbar Order Date: 28-JAN-14

Customs Act (IV of 1969)--- ----S. 217(2)---Civil Procedure Code (V of 1908), O. VII, R. 11---Interpretation of S. 217 of the Customs Act, 1969---Bar of S. 217 of the Customs Act, 1969---Scope---Suit for damages---Rejection of plaint---Plaintiff availed services of the defendants for shipping of consignments to its customers, and when certain consignments could not reach their destinations, plaintiff made complaint before Customs Authorities under provisions of the Customs Act, 1969, which were disposed of---Plaintiff subsequently filed, suit for damages against defendants---Contention of defendants was that the present suit was not maintainable, inter alia on the ground that it was barred under provisions of S. 217(2) of the Customs Act, 1969---Validity---Under S.217(2) of the Customs Act, 1969 a suit was barred only on "questions raised" before, and decided by the Customs Authorities---Bar contained in S. 217(2) of the Customs Act, 1969 did not include rights of a party to claim damages on account of losses sustained by it during course of business and litigation as well as future losses on accounts of loss of clients etc---Defendant had failed to show any order of Customs Authorities accepting or declining damages of the nature claimed by plaintiff in the suit nor were such claims raised by the plaintiff before the Customs Authorities---Bar of S. 217(2) of the Customs Act, 1969 was in respect of a challenge to orders passed by Customs Authorities whereby an assessment had been made, a tax had been levied or a penalty had been imposed under the provisions of the Customs Act, 1969; whereas the present suit was for damages on account of mental torture and stress due to cancellation of consignments sent by plaintiff to its customers---Plaintiff had not prayed for setting aside of any order or modification of any order of Customs Authorities---Suit of plaintiff was therefore, maintainable---Application under O.VII, R.11, C.P.C. for rejection of plaint was dismissed, in circumstances.