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State Cannot Squeeze Citizens of Money Erroneously Paid: Kerala High Court
The High court of Kerala at Ernakulam finally heard a Writ Petition filed by Seahorse Ship Agencies, a company dealing with shipping agents in the matter of Seahorse Ship Agencies v. Union of India (WP(C).No.17924 OF 2020(M)).
The Single Judge Bench of Justice N. Nagaresh heard the plea sought by the petitioner against the Commissioner of Customs.
The petitioner submitted that the Commissioner of Customs had failed to return to the petitioner the duplicate payment of 6,33,144 rupees they had made by mistake.
The petitioner further elucidated that they had erred in making the payment to the Director General of Lighthouses and Lightships (DGLL).
The agent had made a manual payment after what they thought was a failed attempt at online payment.
The respondents argued that they petitioners had made an excess payment and that they were barred by the law of limitation from asking for a refund of their money.
The Court, after listening to the submissions made by both the parties, held for the petitioner.
The Court allowed the writ petition and ordered the respondents to dual payment made by the petitioner within a month.
The Court stated that unlike what has been submitted by the respondents, the Customs Authorities and the DGLL, the erred payment made by the petitioner was not an excess payment and that in fact it was a double payment, as contented by the petitioner.
The Court further stated that it was not correct for State to cite limitation as a defence to hold on to the money of its citizens.
The Court further reasoned that the failure of the State in returning the money back to the petitioner qualified as unjust enrichment.
The Court opined that it is unbecoming of the State and State Authorities to behave in a Shylock-like manner and to take money from its citizens.
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