JUDGMENT

Rajendra Babu, J.-The appellant, Union of India, which lost before the learned Single Judge in O.P. No. 12775 of 1991 and before the Division Bench of the Kerala High Court in W.A. No. 1077 of 1994, has filed this appeal.

2. The respondent, an IPS Officer, who, at the relevant point of time, was serving as the DIG of Police, Northern Range, Kozhikode, which comprised in his area of operation Revenue Districts of Kasargode, Cannanore, Kozhikode, Palakkad, Wayanad and Malappuram. The appellant-Government not only authorized the State Police authorities to effect seizure and investigation of cases under the Central Excise & Salt Act, Customs Act, Gold Control Order and Foreign Exchange Regulation Act, to prevent smuggling of gold and other articles through the coastal areas of Kerala, as well as in other parts of the country but with a view to create an incentive generally in the matter of detection of such violations, proposed to grant awards to those responsible to assist the Government in the same by being informants as well as Government servants and issued Guidelines therefor in the Notification dated 30.3.1985; this was said to have been followed by certain amendments in