High Court Of Calcutta
T. K. Basu
JAY KRISHNA SAHA - Appellant
Versus
D.N.LAL - Respondent
Civil Rule 6015 (W) Of 1974
Decided On : 01/20/1977
GOLD (CONTROL) ACT, 1968 - SECTION 8 (5), 16 (1), 16 (5), 16 (6) - INTERPRETATION - GIFT OF GOLD COINS BEFORE ACT CAME INTO FORCE - NO DECLARATION REQUIRED - HOLDING OF ARTICLES AND ORNAMENTS BY FAMILY - CEILING OF 4,000 GRAMS WITHOUT DECLARATION.
Fact of the Case:
Petitioners were served with a notice under the Gold (Control) Act, 1968, to show cause why 226 pieces of gold sovereigns seized from their premises should not be confiscated. The petitioners claimed that the gold sovereigns were given to them as a gift by the father of the petitioner No. 1, who died in 1956, and that they were not required to make a declaration under the Act as the gift was received before the Act came into force.
Finding of the Court:
The court held that the petitioners had not contravened any of the provisions of the Act. The court interpreted Section 8 (5) of the Act to mean that a person may accept or transfer, by way of gift or exchange, gold coins, not exceeding five in number, if, together with the gold coins received by way of gift or exchange, the total holding of gold coins of the donee or transferee, as the case may be, does not exceed fifty grammes. The court also interpreted Section 16 (1) read with Section 16 (5) of the Act to mean that a family, as defined in Section 16 (6) of the Act, is not required to make a declaration under the Act if the total weight of articles and ornaments owned, possessed, held or controlled by them does not exceed four thousand grammes.
Issues: Whether the petitioners had contravened any of the provisions of the Gold (Control) Act, 1968.
Ratio Decidendi: The court held that the petitioners had not contravened any of the provisions of the Act. The court interpreted Section 8 (5) of the Act to mean that a person may accept or transfer, by way of gift or exchange, gold coins, not exceeding five in number, if, together with the gold coins received by way of gift or exchange, the total holding of gold coins of the donee or transferee, as the case may be, does not exceed fifty grammes. The court also interpreted Section 16 (1) read with Section 16 (5) of the Act to mean that a family, as defined in Section 16 (6) of the Act, is not required to make a declaration under the Act if the total weight of articles and ornaments owned, possessed, held or controlled by them does not exceed four thousand grammes.
Final Decision: The court made the Rule absolute and issued a writ in the nature of mandamus directing the respondents to forthwith recall, cancel and withdraw the notice dated the 29th December, 1973 and to forbear from giving effect thereto in any manner whatsoever.
( 1 ) IN this application, the petitioner challenges certain proceedings sought to be initiated by a notice under the Gold (Control) Act, 1968 (hereinafter referred to as the Act ). The facts leading to the present application may be briefly noted.
( 2 ) ON the 11th July, 1973, a search was made at the premises of Joy Krishna Saha and Charu Bala Saha who are related to each other as man and wife. In course of the search 226 pieces of gold sovereigns and a sum of Rs. 90,000 were seized. Statements were also recorded from both the petitioners. The statements of both the petitioners were almost identical. The gold sovereigns, according to them, were given to Charu Bala Saha by the father of her husband Joy Krishna Saha. The father of the husband died in the year 1956. They could not definitely say when this gift was made by the late father of the petitioner No. 1. Certain statements were made with regard to the cash but we are not concerned with that in the present application.
( 3 ) THE only other fact that need be noticed in this connection is an allegation in paragraph 4 of the petition which is as follows:"the ornaments belonging to your petitioner No. 2 were, however, not seized by the said Customs Officers and were left with your petitioner No. 2. "it is to be noted that this allegation in the petition that certain ornaments belonging to the petitioner No. 2 were found in the course of the search but they were not seized has not been denied in the affidavi-in-opposition filed on behalf of the respondents.
( 4 ) THEREAFTER the petitioners were served with a notice to show cause why the 226 pieces of gold sovereigns which were seized as aforesaid should not be confiscated.
( 5 ) IT is this notice dated the 29th December, 1973 issued under the provisions of the Act which is challenged before me in this application.
( 6 ) BEFORE I deal with the respective contentions of the parties, it will be useful to set out the notice which is in the following terms: "shri Jay Krishna Saha, bama Bhavan, 16/b, B. K. Pal Avenue, calcutta-7. 2. Smt. Charubala Saha, wife of Jaykrishna Saha. Bama Bhavan, 16/b, B. K. Pal Avenue, Calcutta- Subject:-- Seizure of 226 pcs. of gold sovereigns bearing inscriptions indicating their foreign origin valued at Rupees 45,000 (approx. m. v.) wg. 180 3. 40 gms. and Indian currencies from the premises No. 16/b, B. K. Pal Avenue occupied by Shri Jay Krishna Saha and his wife on 11-7-73 in contravention of the Gold (Control) Act, 1s68. Notice to show cause. 1. In pursuance of an information received in this Customs House to the effect that contraband gold and sale proceeds thereof have been secreted in the premises at 16/b, B. K. Pal Avenue occupied by Shri Jay Krishna Saha, the officers of this department searched the said residential premises on the strength of search authorisation No. Gold Control Act 52/p and S/a No. 203 of 1973 on 11-7-73. As a result of the search 226 pcs, of gold sovereigns bearing inscription indicative of foreign origin were recovered from one small aluminium box kept inside a Godrej safe stored in the bedroom of Shri Jay Krishna Saha and his wife on the 3rd floor of the building. Further, Indian currency notes amounting to Rs. 90,000 were recovered from inside a secret chamber at the bottom of a steel almirah made by M/s. Bombay Steel Works placed in another bedroom on the same floor. As Shri Jay Krishna Saha was unable to produce any document in support of the legal importation/ possession of the sovereigns and the Indian currencies in question the sovereigns were seized in the reasonable belief that those were smuggled and un-aulhorisedly acquired by Shri Jay Krishna Saha in contravention of the Customs Act, 1962 and also possessed in contravention of the provisions of the Gold Control Act, 1968. The Indian currencies were seized in the reasonable belief that those were the sale proceeds of the smuggled gold. 2. Shri Jay Krishna Saha made a voluntary statement to
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