High Court Of Delhi
ISHWAR PARASRAM PUNJABI - Appellant
Versus
UNION OF INDIA - Respondent
Criminal Miscellaneous (Main) 941 of 1989
Decided On : 10/03/1989
CUSTOMS ACT, 1962 - SECTION 110 (1-A), 110 (1-B), 110 (1-C) - DISPOSAL OF SEIZED GOODS - NOTICE AND HEARING OF ACCUSED - REQUIREMENT OF - NATURAL JUSTICE - VIOLATION - ORDER PASSED WITHOUT NOTICE - VITIATED.
Fact of the Case:
The petitioner, Ishwar Parasram Punjabi, was arrested for possession of contraband goods seized under section 110 of the Customs Act, 1962. The Customs Department filed an application before the Metropolitan Magistrate under section 110 (1-A) of the Act, seeking permission to dispose of the seized goods. The magistrate allowed the application without issuing notice to the petitioner.
Finding of the Court:
The court held that the order passed by the magistrate was vitiated due to the violation of the principles of natural justice. The court observed that the disposal of case property can have grave implications for an accused and may affect their defense. Therefore, the accused has a vested right to be heard before any order is passed regarding the disposal of the case property.
Issues: Whether the magistrate was required to issue notice to the petitioner before passing the order under section 110 (1-A) of the Customs Act, 1962.
Ratio Decidendi: The court relied on the Supreme Court judgments in Smt. Maneka Gandhi v. Union of India and Harbans Lal v. M. I. Wadhawan to hold that even if a statute does not provide for a right to hearing, the principles of natural justice require that a party likely to be affected by an order be given an opportunity to be heard. The court also noted that the Customs Department itself had started issuing notices in similar applications, indicating that it recognized the need for providing notice and hearing to the accused.
Final Decision: The court allowed the petition, set aside the order passed by the magistrate, and directed that the application under section 110 (1-A) of the Customs Act be taken up afresh after notice to the petitioner.
( 1 ) IN this petition filed under the provisions of section 482 Cr. P. C. , the legality of an order passed by the Metropolitan Magistrate. New Delhi, on 25th April, 1989 on the application moved by the Customs Department under section 110 (1-A) of the Customs Act, 1962, is assailed on the plea that the order suffers from inherent defect as it has been passed without any notice to the petitioner, whose rights were likely to be prejudicially affected any without affording him an opportunity of being heard.
( 2 ) THE facts in so far as they have a bearing on the point in issue here, are that as per allegations made in the application moved on 20th April 1989 by the Special Public Prosecutor for Customs Department before Shri V. B. Gupta, Metropolitan Magistrate, New Delhi who is link magistrate to the Addl. Chief Metropolitan Magistrate, New Delhi, contraband goods consisting of V. C. Rs. , VCPs, colour film rolls, photo papers, ete. all of foreign origin were siezed from different places on 18th November, 1988. The seizure was effected in exercise of the powers under section 110 of the Customs Act 1962. These, inter alia, included 676 VCRs. , 357 VCPs and 59,900 colour film rolls and 4 photo papers, all valued at Rs 1. 66,80,000. 00 recovered from 201, Sainik Farm, New Delhi, which premises were under the control and possession of Ishwar Parasram Punjabi (the petitioner herein ).
( 3 ) PLEADING that these goods required immediate disposal and further that if these were not disposed of, the same would be destroyed and thus result in national wastage and that it was in the interest of Justice that the case property, namely, the goods which were notified for the purpose of the section 110 (1-A) of the Customs Act are sold or disposed of; the magistrate was approached with the request to certify the correctness of the inventory, taking photographs, and certifying such photographs as true, allowing lo draw representative samples of the goods and certifying the correctness of the list of samples so drawn. The application concluded with the prayer that appropriate orders, as required by section 110 (1-A) and 110 (1-B) of the Customs Act be passed.
( 4 ) THIS application was disposed of by the concerned magistrate, vide order dated 25th April 1988, after hearing Mr. Satish Aggarwal. appearing for the Customs Department, who had moved the application After reproducing the contents of the application in respect to the description, as well as, quantity of the goods, and taking note of the scheduled items, as per notification issued in exercise of the powers conferred by section 110 (1-A) of the Customs Act, he allowed the application and directed that an inventory be prepared in respect to 676 VCRs, 357 VCPs and photographs could also be taken as also their representative samples, and thereby disposed of the application.
( 5 ) MR Harjinder Singh appearing for the petitioner raised a basic issue in respect to the impugned order contending that on all counts the property, which is the subject matter of the order is the case property inasmuch as the petitioner was arrested as a sequel to ihe recovery of these goods and he is being remanded to judicial custody on the applications made by Customs Department and was liable to face prosecution under section 135 of the Cutoms Act, and further that the adjudica tion proceedings with respect to the same seizure have already commenced, inasmuch as the petitioner has been served with a show cause notice and further that on same facts he was placed under detention, in exercise of powers under section 9 (1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act and was confined to Central Jail, Tihar at the time the present petition was filed.
( 6 ) HE contended that the implications of this order were very far reaching and that the direction for preparation of inventory, or other matters covered by the order, are steps towards disposal of this property under
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