A. R. BAKSHI, P. N. BHAGWATI, J.

( 1 ) THIS petition challenges the validity of certain provisions of the Gold Control Rules 1963 On 26th October 1962 simultaneously with the Declaration of Emergency under Article 356 of the Constitution the President promulgated the Defence of India Ordinance 1962 Pursuant to sec. 3 of the Defence of India Ordinance the Central Government made the Defence of India Rules 1962 The Defence of India Ordinance was subsequently repealed by the Defence of India Act 1962 on 12th December 1962 but by virtue of the saving provision the Defence of India Rules were continued in force. The Defence of India Act was passed as its Preamble shows to provide for special measures to ensure the public safety and interest the defence of India and civil defence and for trial of certain offences and for matters connected therewith. Sec. 3 sub-sec. (1) read as follows :-3 (1) The Central Government may by notification in the Official Gazette make such rules as appear to it necessary or expedient for securing the defence of INDIA and civil defence the public safety the maintenance of public order or the efficient conduct of military operations or for maintaining supplies and services essential to the life of the community. SEC. 3 sub-sec. (1) provided that without prejudice to the generality of the powers conferred by sub-sec. (1) the rules may provide for and may empower any authority to make orders providing for all or any of the matters enumerated in clauses (1) to (57 ). One of the matters enumerated was that set out in clause (33) namely :- (33) controlling the possession use or disposal of or dealing in coin bullion bank notes currency notes securities or foreign exchange;. ON 9th January 1963 the Central Government in exercise of the powers conferred under sec. 3 of the Defence of India Act amended the Defence of India Rules by introducing Part XII-A comprising Rules 126a to 126z (hereinafter referred to as the Gold Control Rules 1963 Rule 126a clause (a) defined Board to mean the Board constituted under rule 126j and Rule 126i clauses (1) and (2) laid down the constitution and functions of the Board. Clause (4) of Rule 126j conferred power on the Board to authorise by general or special order any person to exercise all or any of the powers exercisable by it under this Part other than the power to hear appeals under Rule 126m and this present power of authorisation and different persons could be authorised by the Board to exercise different powers. Rule 126i clause (1) required every person (not being a dealer or refiner required to apply for a licence or licensed under Part XIIA) to make a declaration to the Board in the prescribed form as to the quantity description and other prescribed particulars of gold other than ornaments owned by him within thirty days from the commencement of Part XIIA. Part XIIA came into force on 9th January 1963 and therefore the period of thirty days limited by Rule 126i clause (1) for making a declaration under that rule was due to expire on 8th February 1963 but the Central Government extended the period upto 28th February 1963. The petitioner was admittedly not a dealer or refiner required to apply for a licence or licensed under Part XIIA and he was therefore required under Rule 126i clause (1) to make a declaration to the Board in the prescribed form as to the quantity description and other prescribed particulars of gold owned by him. He accordingly made such declaration on 7th February 1963 and in that declaration he showed that he owned only six gold bars and twenty five gold sovereigns.

( 2 ) NOW according to the respondents the petitioner also owned further eight gold bars weighing 23 229 Gms. and one hundred fifty gold sovereigns weighing 1 223 Gms. which were not declared by him and he remained in possession of this quantity of gold (hereinafter referred to as the undeclared gold ). This undeclared gold was secreted by the petitioner beneath the earth two and a half feet

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