UNION OF INDIA Vs. KHAIRUL JABBAR

JUDGEMENT

(1.) Special leave granted.

(2.) The appeal is directed against the order of a division bench of the high court at Bombay summarily dismissing a Letters Patent Appeal on the ground that the appellant could not make any grievance about the order of the learned Single Judge impugned before the division bench in view of certain orders of Single Judges which had become final and binding. The order of the learned Single Judge allowed the oral application of respondents 1-7 (plaintiffs) to dismiss the suit against the appellants (fourth defendant) on the ground that no relief was claimed against them despite objection bytheir counsel. The learned Judge then passed a decree in favour of the plaintiffs and against the first and second defendants (the vessel and its owner) ex parte in the sum of Rs. 42,23,830. 00 with interest thereon as therein stated.

(3.) So far as is relevant for our purposes, the facts are that the vessel "korea Horizon" was seized by the appellants, the Customs authorities. The vessel was then arrested in the Admiralty Jurisdiction of the High court of Bombay. An adjudication order was thereafter passed in respect of the vessel by which the vessel was confiscated under Section 115 of the customs Act, 1962 but the owner was given the option to redeem it upon payment of rupees fifteen lakhs. Penalties were also imposed upon the captain and various crew members, including the plaintiffs. On 14/06/1991 an order was taken in the Admiralty suit which stated that as the ship was taking in water and likely to sink, it was agreed by the plaintiffs, the second defendant, the Bombay Port Trust, the Customs authorities and the purchaser of the vessel, which had been ordered to be sold under the authority of the court, that, at the time of confirmation of the sale, the question of payment to the Bombay Port Trust and the Customs authorities should also be decided. The Sheriff was directed to pay, out of the sale proceeds, to the customs authorities the sum of rupees fifteen lakhs towards redemption fine whereupon the Customs authorities were to release the vessel by lifting the seizure. It was also clarified that the Bombay Port Trust and the Customs authorities were at liberty to adopt such proceedings as they might be advised for their balance claims,