( 1 ) IN this appeal the appellants, who are the authorities under the Gold (Control) Act, 1968, have challenged the propriety of the judgment of A. K. Mookherjee, J. whereby the learned Judge made the Rule Nisi issued on the application of the respondent Nil Kanta Dey under Article 226 of the Constitution, absolute and quashed the impugned notice to show cause issued under Section 79 of the said Act.

( 2 ) THE respondent is a licensed dealer in gold. On March 22, 1973, the customs officers searched the godown and the dwelling house of the respondent. On such search they recovered 10 pieces of gold sovereigns and one piece of gold rod from the bed-room of the respondent, but nothing was, however, recovered from the shop. The respondent was absent from his house at that time. One Sakshi Gopal Dey, the brother-in-law (wife's brother) of the respondent, made a statement to the effect that the gold sovereigns belonged to the house and were the gifts of the respondent's father to his grandsons and grand daughters (the respondent's children) and the gold rod was obtained by melting the gold ornaments of the respondent's wife for making new ornaments. It appears th