JUDGMENT

Heard Shri A. Subba Rao, learned counsel for the Union of India and Shri S. K. Bhattacharya, learned counsel for the respondents.

2. Special leave granted.

3. Immediately after the authorities of the Enforcement Directorate conducted search and seizure operation and recovered certain foreign and Indian currency allegedly from the premises of the respondents, the respondents moved the High Court of Jammu and Kashmir under Art. 226 of the Constitution of India. The High Court admitted the writ-petition and made an interlocutory order directing the return of the seized valuables on certain terms. The Union of India assails the correctness of this order.

4. In the meanwhile, pursuant to certain interlocutory directions made by this Court during the pendency of the special leave petition, the Statutory Authority has concluded the adjudication proceedings and has passed an order of confiscation, penalty etc., on 5-10-1990. Appellants submit that after this adjudication the main writ-petition before the High Court does not survive as respondents have their statutory remedies by way of appeal against the adjudication. Respondents say that it is doubtful whether, in the facts found in