Order of confiscation amenable to correction by writ of certiorari.

The first petitioner is the proprietor of a firm which carries on business at Madras in gold, bullion and jewellery. The second petitioner is an employee of the firm. On 26th June, 1956, when the second petitioner alighted from the Bombay Mail at the Central Station at Madras, he was in possession of four blocks of moosa gold weighing about 1,000 tolas valued at over, one lakh of rupees. The claim of the petitioner all along was that the first petitioner was the owner of that gold as it was with the money found by the first petitioner that the gold was purchased at Bombay by the second petitioner for and on behalf of the first petitioner.

The following narrative of what happened after the second petitioner got off the train at the Central Station on 26th June, 1956, is taken from the order of the Collector of Customs, dated nth March, 1957:

"On 26th June, 1956, at about 6 a.m., Sri G. Nandagopal (second petitioner) who alighted at the Central Railway Station from the Bombay Express (?) train was intercepted by a Head Constable attached to the Prohibition Intelligence Bureau, Madras. Shri Nandagopal admitted that he was in possession of gold, which he was bringing for his firm from Bombay. Immediately the Customs Officers, who were on duty at the Central Railway Station contacted the Head Constable and questioned Shri Nandagopal. Shri Nandagopal admitted that he had on his person about 1,000 tolas of “moosa” gold and accordingly four blocks of gold without marks were recovered from Shri Nandagopal’s possession. Shri Nandagopal was not in possession of any bill of purchase, receipt or weighment slip for the said gold. The gold blocks were seized by the Police and passed on to Customs Officers under a mahazar."

The further facts were set out in paragraph 3 of the counter-affidavit filed by the respondent, the Collector of Customs:

" In a statement recorded immediately after the seizure before an independent witness, he (the 2nd Petitioner) stated that he proceeded to Bombay on 22nd June, 1956, on instructions of his principals the first petitioner herein, with Rs. 1,00,000 that he purchased the said gold on 24th June, 1956, from Messrs. Mathuradas Gopalakrishnayya and Co., Jahvari Bazaar, Bombay and brought the gold with him. A letter, dated 22nd June, 1956, by Tulasi Shah of the first petitioner’s firm to Mathuradas Gopalakrishnayya and Co., Bombay, requesting them to receive and credit in their favour the sum of Rs. 1,00,000 sent in cash, was also recovered from the second petitioner. The second petitioner could not, however, account as to how he retained the letter with him. The Manager of the first petitioner’s firm who was immediately contacted, admitted in writing that he had sent the second petitioner to Bombay to purchase gold. The first petitioner in his statement, dated 26th June, 1956, also affirmed that the second petitioner was sent with instructions to purchase “ Mysore Petla” gold from Mathuradas Gopalakrishnayya and Co., Bombay, and that he believed that the second petitioner had purchased the gold from that firm. The first petitioner by the same statement undertook to produce the relative bill and touch report on their receipt. On 5th July, 1956, the petitioner forwarded to the respondent a bill, dated 24th June, 1956, issued by Mathuradass Shewakram of Messrs. Damodardas Homandass, No. 32-34, C.P. Tank Road, Bombay, for a sum of Rs. 1,01,171-6-0 for the sale of four blocks of gold weighing 1,000.7 tolas to the first petitioner’s firm and also a statement from the said Shewakram affirming the transaction. The petitioner in his covering letter stated that the gold had been purchased by the second petitioner from Shewakram through a broker by name Odhavadas Gokuldas. No test report was, however, sent to the respondent. On 10th July, 1956, when the second petitioner was interrogated by the Assistant Collector of Customs (Preventive) in the presence of his counsel, he retracted from his earlier statement