The power of seizure under Section 66 of the Gold Control Act, 1968 is subject to the condition precedent of a reasonable belief that the provisions of the Act have been, are being, or are attempted to be contravened. This belief must be based on objective and verifiable grounds, and not on mere suspicion or conjecture.

Prem Shanker Sahay, J.

1. The petitioners have moved this Court for quashing of the proceedings relating to the search and seizure of their gold ornaments from locker No. 64 of Allahabad Bank, Rajendra Nagar Branch, and for a direction to the respondents to release the aforesaid gold ornaments.

2. Here it will be necessary to state the facts mentioned in the application. Petitioner No. 1, Bawa Gopal Das Bedi and Sons, is a registered partnership firm dealing in the business of gold and petitioners 2 to 4 are its partners The firm is a licensee under the provisions of the Gold (Control) Act, 1968 (hereinafter to be referred as the Act) bearing dealer licence No. 11/63. The firm is also permitted for inter State movement of gold ornaments and sales. A copy of the certificate granted by Assistant Collector, Central Excise, Amritsar, dated 8-3-1973 has been filed and marked as Annexure-1. Under the Gold (Control) Rules (hereinafter to be referred as the Rules) every licensed dealer has to maintain accounts under Rule 11 and the details have to be filled up in form G.S 12. The case of the petitioners, farther, is that some of the petitioners left Amritsar on 3-1-1981 with gold ornaments weighing 4482.750 grams and reached Kanpur and there they sold 79.600 grams to a licensed dealer named Kashi Jewellers and 203.200 grams to another licensed dealer of the same place, namely, Society Jewellers. On 9-1-1981 the petitioners firm purchased 636.700 grams of gold ornaments from Lakshmi Jewellers, Coimbatore, and, thus, the petitioners firm was in possession 4836 650 grams of ornaments. Some of the petitioners came to Patna and on 10-1-1981, 1101 grams of gold were sold to Alankar Jewellers and the remaining gold ornaments weighing 3735.650 grams were kept in locker No. 64, which was hired by petitioners No. 3 and 4 and their brother Pradeep on 31-7-1978 (Annexure-3), of Allahabad Bank, Rajendra Nagar Branch, Patna, by petitioner No. 4. The relevant entries were made in form G.S. 12 and copy of the same has been filed and marked Annexure-2. It is, further, stated in the petition that three raids were conducted by the Central Excise Department in the business premises of Messrs. Alankar Jewellers, Muradpur, and also at the residence of the proprietor, Sri Jai Nath Prasad. On 21-1-1981 a brief case belonging to petitioner No. 4 and Pradeep Kumar containing a blank voucher bearing serial No. 231 also bearing the stamp of the Inspector (Gold Control Officer) Central Excise Gold Range, Amritsar, of gold licence No. 11/63 of petitioner No. 1 firm was found and was seized by the Officers. On 27-1-1981 in the business premises of Alanka Jewellers two godrej keys of the lockers of the Bank were recovered and it may be mentioned that they belonged to petitioner Nos. 3 and 4. Jai Nath Prasad gave a statement before the Department and a copy of the same is filed as Annexures-4 and 5. Petitioner No. 1 having lost the key of the locker of Allahabad Bank, filed an application before the Manager of the Bank on 29-1-1981 that the key has been lost and a prayer was made for breaking open the locker and the petitioner was asked to come after ten days so that necessary directions may be taken from the higher authorities in this regard. A similar application was filed by Pradeep Kumar on 28-1-1981 regarding the loss of key of State Bank. On 6-2-1981 petitioner No. 2 went to Allahabad Bank for opening the locker and was told that the Officers of the Central Excise Department had opened the locker and has seized the ornaments kept there weighing 3735.650 grams on 5-2-1981. Petitioner No. 2 thereafter filed an application before respondent No. 2 for the return of the ornaments but it was refused and on the other hand the officers took his statement copy marked Annexure-6. Thereafter, petitioner No. 2 went to Kanpur and on his return sent an application under registered cover, copy of which has been filed and marked Annexure-7, but no reply was received fr