1. The Collector of Central Excise, Madras imposed a penalty of Rs. 50,000 under S.167 [8] of the Sea Customs Act, VIII of 1878 on respondent No.1 by order dated 23rd October 1958 consequent on the seizure and confiscation of some 12,496 tolas of contraband gold from a vessel partly owned by the first respondent. The first respondent is an Arab National residing in Arabia and it has not therefore been possible for the Customs Authorities to recover the penalty. The second respondent, a resident of Kozhikode, has admitted in two signed statements made by him before the Superintendent of Central Excise [Customs Preventive], Madras and the Assistant Collector of Central Excise [Customs Preventive], Calicut that he is holding an amount of Rs. 35,530 on behalf of the first respondent and has also undertaken not to transfer the amount except under the orders of the Collector of Central Excise, Madras. On 13th December 1958 the Collector of Central Excise, Madras, notified to the District Magistrate, Kozhikode, regarding the case and requested him to take action under S.193 of the Sea Customs Act to enforce payment of penalty. The District Magistrate transferred those proceedi