Delhi HC says Civil Court Decree on BRCs Does Not Bind Customs in Drawback Proceedings

The Delhi High Court held that a declaratory decree obtained by an exporter against its bank, declaring cancellation of BRCs to be null and void, could not automatically defeat independent Customs proceedings for recovery of drawback and export benefits. Since Customs was not a party to the civil suit, the decree did not conclusively determine the Department's statutory rights. The adjudicating authority's evidence and the legal effect of the decree had to be examined independently.