Quasi-judicial proceedings require strict adherence to principles of natural justice, including the right to cross-examine witnesses, which was violated in this case, rendering the confiscation order invalid.

1. The Petitioners carry on business in bullion and are licensed to refine precious metals. They have filed the petition for the issue of a writ of certiorari or other appropriate writ, direction or order under Art.226 of the Constitution against the Additional Collector of Customs and the Union of India for quashing and setting aside the order, dated 13th June 1959, passed by the Additional Collector of Customs confiscating certain quantity of gold and imposing fines in lieu of such confiscation. They have also prayed for a writ of mandamus or other appropriate writ, direction or order under Art.226 of the Constitution against the Additional Collector of Customs for restoring possession of the gold weighing 452 tolas and 17½ vals belonging to the petitioners which has been seized.

2. The facts giving rise to the petition, briefly stated, are as follows : On 9th September 1957, 100 tolas of smuggled gold was seized from one Dina Mangtu, a sweeper employed by the Pakistan International Airways. He was interrogated. Whilst referring to previous transactions in which he was concerned, he admitted that he had brought a similar consignment containing gold from a Pakistan International Airways plane which had arrived from Pakistan on 7th September 1957 and that he had handed it over to one Julio Lobo. Julio Lobo when questioned admitted having received the said consignment. Julio Lobo stated that it consisted of 100 tolas of gold. He further stated that this gold was sold by him to a goldsmith by name Bansilal Sagarmal Porwal. Bansilal Sagarrnal Porwal in his turn admitted having purchased this gold. Bansilal Sagarmal Porwal stated that he got the said gold melted adding base metal to it and converted it into a 'patla' or bar bearing No. M - 1565, which weighed 103 tolas and 29 vals. He sold this bar of gold to one Choksi Chimanlal Purshottam. Choksi Chimanlal Purshottam admitted the purchase of this gold and stated that he had sold the same to the Petitioners. The Petitioners admitted having purchased the said gold bar bearing No. M - 1665 on 11th September 1957. It is the case of the Petitioners that they were the purchaser for value of this gold without notice of the fact that the gold was smuggled, and that they purchased this gold in the ordinary course of business. The Petitioners carry on business on a large scale. They state that their purchase of gold for the year 1957 aggregated to nearly Rs. two crores. On the same day the Petitioners had purchased two other gold bars from the said Choksi Chimanlal Purshottam weighing 101 tolas and 17 vals and 42 tolas and 13 vals respectively. On that day they had also purchased one gold bar weighing 250 tolas and 31¼ vals from one Vithaldas Nanji. The Petitioners received on that day from their customers Messrs. Gokuldas Mohanlal and Co. one gold bar bearing No. B/M 1646 weighing 103 tolas and 38 vals of about 90 fineness for the purpose of refining. They had also received on that very day from their customers Messrs. Mohanlal Bhagwandas Choksi and Co. one gold bar bearing No. B/M 1584 weighing 144 tolas and 6 vals of 94-23 fineness for the purpose of refining. The Petitioners state that for the purpose of refining gold the minimum quantity of gold that is required for the crucible in their refinery is 600 tolas. The Petitioners sent to their refinery all the aforesaid bars of gold including the bar of gold which they had purchased from Choksi Chimanlal Purshottam which contained the smuggled gold. The total quantity of go