Court highlights prolonged detention of goods at IGI Airport customs warehouses, orders Customs Department to submit detailed instructions to ensure expeditious adjudication and curb mounting demurrage charges
In a significant judgment dated November 3, 2026, the Delhi High Court (Division Bench comprising Justices Avneesh Jhingan and Shail Jain) addressed the systemic issue of prolonged delays in the adjudication of detained goods by Customs authorities at the Indira Gandhi International (IGI) Airport, Delhi. The petition was filed by Mr. Niyamat Khan against the Commissioner of Customs, IGI Airport, highlighting an ongoing failure of the Customs Department to timely adjudicate cases of detained goods.
The Court observed that the petitioner's goods were detained in January 2025, and although a notice granting an opportunity for personal hearing was issued in August 2025, the matter remained undecided as of November 2026 - nearly two years after detention. The respondent Customs Department justified the delay by stating the petitioner failed to appear for the personal hearing. However, the Court rejected this as a valid excuse for such inordinate delay.
The Court emphasized that this case is not isolated; it reflects a broader problem where detained goods remain in Customs warehouses for prolonged periods without adjudication, causing continuous accrual of demurrage charges. These charges often exacerbate the hardship faced by passengers, some of whom may not be permanent residents of India, unfairly turning procedural delay into a mode of punishment.
Calling out the apparent lack of urgency on the part of the Department, the Court directed that steps must be taken to institute uniform instructions prescribing a consistent and expeditious adjudication process. The judgment mandates the Customs Department to file detailed instructions by affidavit within three weeks, outlining measures to address the delay. The Court also suggested that the Chief Commissioner of Customs could collect data from various airports and the Central Warehousing Corporation regarding the detention dates and pendency of cases to analyze the problem on a broader scale.
The Court deferred further proceedings to November 27, 2026, to review the Department's submission and monitor progress.
This judgment serves as a clarion call for Customs authorities across India to reform adjudication procedures to safeguard passenger interests, minimize unnecessary detention periods, and reduce financial burdens arising from demurrage charges.
Bottom Line:
Customs - Detention of goods - Inordinate delay in adjudication by Customs authorities while demurrage charges continue to accrue - Mere issuance of notice for personal hearing and non-appearance of passenger cannot justify keeping matter unadjudicated for months and years - Delay in adjudication cannot be made a mode of punishment - Court sought uniform instructions for consistent and expeditious adjudication.
Statutory provision(s):
Customs Act, 1962 (implied provisions related to detention and adjudication of goods)
Mr. Niyamat Khan v. Commissioner of Customs, IGI Airport, (Delhi)(DB) : Law Finder Doc Id # 3014568
