ORDER

1. Delay condoned.

2. Leave granted.

3. The only question in this appeal is whether the High Court could have directed payment of interest on certain jewellery and ornaments belonging to the respondents which had been seized by the appellants on 12 - 1 - 2001. The seizure was challenged by the respondents before the High Court by filing a writ petition. The writ petition was allowed on 3 - 12 - 2004. The High Court was of the view that the search and seizure were invalid and illegal.

Consequentially, all actions taken by the appellants on the basis of such illegal search and seizure were quashed. The appellants were directed to forthwith return the gold, diamond and jewellery and ornaments seized from the respondents with interest at the rate of 8% per annum on the value of the jewellery and ornaments which the High Court quantified at Rs 84.68 lakhs from the date of seizure till payment.

4. The grievance of the appellant was that there is no prayer by the respondents for payment of interest in their writ petition. Learned counsel appearing on behalf of the respondents, on the other hand, contended that the High Court was competent to award penal interest by way of compensati