Judgment

P. JAGANMOHAN REDDY, J.:- This is an appeal by certificate under Article 133 (1) (b) of the Constitution against the judgment of the Calcutta High Court which dismissed an appeal from an order of the single Judge of that Court discharging a rule granted by it to the appellants calling on the respondents - the Collector of Customs and others - to show cause why certain orders passed under various sections of the Sea Customs Act and the Foreign Exchange Regulation Act should not be quashed and why a written complaint made by the respondents under the Foreign Exchange Regulations Act and the Case pending in the Court of the Presidency Magistrate, Calcutta, should not be stayed.

2. The appellant is a registered partnership firm carrying on business of importers, exporters, commission agents, brokers and general merchants. It consists of two partners, Girdhari Lal Gupta and Pooran mal Jain On the 25th October 1958, the Cashier of the appellant - Bhagwandeo Tiwari handed over a consignment of wooden case to the Swiss Airways at Dum Dum Airport for being sent by air freight to Hongkong. According to the consignment note, the consignment was being sent by one Ramghawan Singh of Karnani Mansions, Park Street, Calcutta, who in fact was a fictitious person. The Shipping Bill showed that the consignment purported to contain Reassogolla, Achar, Paper and dried vegetables and it was being sent to one Ishwar Lal, 41 Wyndham St., Hongkong who is also alleged to be a fictitious person. After the consignment was accepted and when the Customs examined it for clearance on 25th October 1958 before its onward despatch of Hongkong, there was found concealed in a specially made secret cavity on the battens nailed to the inner sides of the case, Indian Currency notes of Rupees 51,000/- An investigation was set on foot and on 22ndJanuary 1959 a search warrant was issued by the Presidency Magistrate, pursuant to which the Customs Officers caused a search to be made of the office of the firm and the residences of the appellant s partners. In the course of search account books and other documents were seized. This investigation revealed that the Cashier, Bhagwandeo Tiwari had signed the consignment note as Ramchandra which, as the subsequent writings showed, were in his hand even the consignment note appears to have been typed on the typewriter of the appellant firm. It was further alleged that from a comparison of the consignment note with a letter admittedly sent out by the appellant firm and signed by one of its partners. Girdhari Lal Gupta, it became evident that the slip seized from the office of the appellant firm had contained entries, to show that Bhagwandeo Tiwari was the person who actually transported and booked the offending consignment in question and that he made an entry of Rupees 123.73 being the Air freight paid for its transport to Hongkong which was the exact amount shown on the consignment note. Bhagwandoe Tiwari, it was said; had in fact admitted that the account ship was in his handwriting, and that the expenses and charges shown therein were also found in the books of account of the appellant firm. In view of this evidence, the customs authorities served a notice on the appellant firm on April 2, 1959 by which after setting out in detail the aforesaid facts and after pointing out that the exportation of Indian Currency out of India was in contravention of Section 8 (2) of the Foreign Exchange Regulation Act, 1947 read with the Reserve Ban of India Notification dated 27-2-1951 as specified therein , it was asked to show cause and to produce within four days of the receipt of the notice, the permit, if any, of the Reserve Bank of India, for export of the Indian currency and if it did not do so, it would be liable for prosecution under Section 23 (1) read with Section 5 (2) of the Foreign Exchange Regulation Act. On 13-4-1959, the appellant firm replied to the notice denying that the firm and anything to do with the despatch of