JUDGMENT

BAHARUL ISLAM, J. :— By this petition under Article 32 of the Constitution of India, Smt. Hemlata Kantilal Shah (hereinafter the wife) has challenged the detention of her husband Shri Kantilal Nagar Das Shah (hereinafter the detenu) who was detained by the State of Maharashtra (Respondent No. 1) by order dated June 3, 1981 under subsection (1) of Section 3 of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (hereinafter the Act). The material facts on which the grounds of detention have been based may be briefly stated as follows :-

2. On January 8, 1981, the detenu with his wife and their minor daughter, Miss Chaya Kantilal Shah, arrived in Bombay from Muscat by Flight No. AI 838. The petitioner at the customs clearance counter of the airport appeared nervous and was hasty in clearing her baggage. The Intelligence Officer of the Air Customs Unit who had been present at the counter on receipt of secret information kept a close watch on her. When the family reported at the customs counter, the Intelligence Officer approached them and asked for their passports. It was found that the detenu, the petitioner and their daughter were all holding Indian passports and were frequent travellers. When asked about the contents of the baggages and for declaration in respect of gold, watches, and other valuable items, the detenu replied in the negative. The wife was asked to present her purse which was kept in a corner of the Customs counter covered with other pieces of baggage. In the said purse, one small tobacco tin marked "Three Nuns" was found. The tin appeared to be unusually heavy and as such the detenu was asked again to declare the contents. The declaration was that the contents were some coins and that the tin was to be delivered to one Torahim in Bombay. Not being satisfied with the reply, two independent panchas were called and in their presence and in presence of the detenu and his wife, the tin was opened and 48 slabs of Palladium metal each weighing one ounce were found. The baggage was then thoroughly examined in the presence of the detenu and his wife and the panchas. The examination resulted in recovery of 93 more slabs of Palladium concealed in cheese packets, and in thermocol. Thus altogether 141 slabs of Palladium valued at Rupees 3,54,192.00 were recovered. They were seized by the Customs Officer.

3. The detenu and his wife were then led to their residential premises of Flat No. 194, 19th Floor, Persepolis Apartment, Cuff Parade, Bombay 5, standing in the name of the wife. The premises were searched under a search warrant. The search resulted in the recovery of (1) Philips Colour T. V. valued at Rs. 18,000.00; (2) Akai Video Cassette Recorder valued at Rs. 24,000; (3) Sharp 3-in-one Model valued at Rs. 6,000.00 and (4) General Air Conditioner valued at Rs. 15,000.00. All these articles were also seized by the Customs Officer.

4. On the following day, the detenu made a statement which was recorded under Section 108 of the Customs Act. The detenu stated that he had been in Muscat for the last 40 years and had business of ready-made garments there; and that he was a wealthy man with two wives named Hasumati and Hemlata (the petitioner). The two wives were staying in Bombay at Cuff Parade in separate apartments. The detenu further stated that two months ago he had come to Bombay where he had come to know from Zaveri Bazar that smuggling of Palladium was a profitable business. He therefore had purchased the 141 slabs of Palladium of one ounce each for 9000 Omani Riyals from one Pursottam Kanji in Muscat who was a dealer in precious metals. Before leaving Muscat for Bombay, he had packed the 141 bars of Palladium in the three containers aforesaid. The detenu also stated that the sharp 3-in-one had been presented to him by His Highness Sultanbin Hamed-Al-Said of Muscat in October, 1990, and that the other three articles had been purchased by him from the Omani Consul General, Mr.Salim