Legal principle

Security for provisional release under Section 110A must be reasonable and based on relevant factors; terms given to a co-noticee in the same case are highly relevant, and clearly excessive conditions can be corrected in writ jurisdiction despite the appeal remedy.

Court decision

The writ petition was partly allowed. The bank guarantee condition of Rs.6 crore was reduced to Rs.50 lakh for provisional release of the barge. All other conditions of the order dated 09.09.2026 remain. No costs.

Facts

Richa Shipping Private Limited is the charterer of the barge M.T. Bay III. On 13.06.2026 customs intercepted the barge at TAI Anchorage, Mumbai, alleging that about 208 KL of Very Low Sulphur Fuel Oil (VLSFO) had been transferred from it to M.V. Angara. The barge was seized under Section 110 on 15.06.2026. M.V. Angara was released on an e-Bond of Rs.16,12,03,600 and an e-Bank Guarantee of Rs.30 lakh. After earlier High Court directions, the Additional Commissioner of Customs passed an order dated 09.09.2026 under Section 110A allowing provisional release of the barge only on a bond of Rs.12 crore and a bank guarantee of Rs.6 crore. The petitioner, saying the barge was worth about Rs.2.90 crore, challenged these conditions by writ petition in the Bombay High Court.

Key provisions

• Section 110A, Customs Act, 1962 — Provisional release of goods, documents and things seized