Delhi High Court Flags Mounting Demurrage Due To Customs Delay In Adjudicating Detained Goods Cases

The Delhi High Court has flagged delays by Customs authorities in adjudicating cases involving detained goods, observing that the delay cannot be used as a mode of punishment for passengers while demurrage charges continue to accumulate.

The Division Bench of Justices Avneesh Jhingan and Shail Jain made the observation while hearing a petition filed by Niyamat Khan concerning goods detained by Customs at the Delhi airport.

The goods were detained in January 2025. Although Customs issued a notice in August 2025 offering the petitioner an opportunity for a personal hearing, the matter remained unadjudicated as of November 3, 2026.

The Department submitted that the petitioner had not appeared for the personal hearing, and that the matter could therefore not proceed further.

The Court, however, noted that the Department had been aware of the pending writ petition since February 2026.

It observed that this was not an isolated case, and that detained goods often remain in warehouses for months or years without adjudication, while demurrage charges continue to accrue.

It noted that such charges may continue not only until the original order is passed, but also until a revisional order is made if the Department pursues the matter further.

“It appears that there is a lack of urgency on the part of the Department to adjudicate such matters and this is irrespective of the fact that some of the passengers may not be permanent residents of India. The delay in adjudication cannot be made a mode of punishment for the passengers whose goods have been detained. To add to the hardships of the passengers, demurrage charges continue to accumulate not only till passing of the orderin-original but till the revisional order, if the Department pursues the matter further,” the Court said.

It observed that appropriate steps were needed to ensure uniform instructions prescribing a consistent procedure for expeditious adjudication, to the extent possible.

The Court thus requested the Customs Department panel counsel to assist in the matter and permitted the Department to file a detailed affidavit within three weeks.

The Chief Commissioner of Customs may also collect data from airports and the Central Warehousing Corporation on detained goods and pending cases, it said.

The matter is now listed on November 27.

For Petitioner: Advocate Mohit Kumar

For Respondents: Advocate Avijit Dikshit, SC with Monika Verma