BEOPARI MAL Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a petition under Articles 226 and 227 of the Constitution of India. It is directed against the order of the Collector of Central Excise and Land Customs, New Delhi dated the 25th July, 1958. By this order, the Collector confiscated Indian currency amounting to Rs. 56.225/6.00 under Section 167(8) read with section 19 of the Sea Customs Act, 1878, as made applicable bysection 23-A/23-B, of the Foreign Exchange Regulation Act, 1947. In addition to this, the Collector imposed a personal penalty of Rs. one lakh on Beopari Mal petitioner and a penalty of Rs. 1.000.00 each on Jethu Singh and Har Singh. The petition has been argued entirely on the basis of the facts found by the Collector. Only two contentions have been advanced. The first contention is that there is no evidence on the basis of which any finding could he given that the monies recovered from the possession of Jethu Singh and Hari Singh were the sale proceeds of smuggled gold and that the petitioner was exporting Indian currency. In this connection it is further maintained that even on the facts found by the Collector, no such inference can he deduced or is possible.

(2.) The second contention advanced is that no proper opportunity was afforded to the petitioner to show cause to the action proposed to be taken against him under the Sea Customs Act and as well as under the Foreign Exchange Regulation Act. To narrow down the ambit of this contention, it may be stated that the only point sought to be made was that certain witnesses who had been examined by the Collector at the back of the petition and copies of whose statements had been furnished to him, were not examined in the presence of the petitioner nor were they permitted to be cross-examined. The procedure has resulted in the violation of the rules of natural justice, contends the learned counsel for the petitioner. Therefore, the entire order of the Collector beconies illegal and therefore of no consequence.

(3.) Before examining these contentions, it will be proper to set out the salient facts of this case. The Customs authorities had information that two Government railway police constables Jethu Singh and Hari Singh had, on the 3rd of January, 1957, carried smuggled gold for disposal at Jodhpur. The gold had been disposed of at Jodhpur. That the constables would be bringing back the sale proceeds of gold to Banner by train on the morning of the 5th January, 1957 for smuggling the same into Pakistan. The Superintendent, Land Customs, Banner accompained by the Customs Preventive party and the Superintendent and Deputy Superintendent of Police of Barmer organized araid on the incoming Jodhpur-Barmer train. The train arrived at Barmer in the early hours of the morning of the 5th January, 1957. On arrival of the train, the suspected G. R. P. constables were apprehended. They were in the compartment reserved for the Government Railway Police Escort Party. Tnere were other persons also in the compartment. The Superintendent of Police challenged the two constables, whereupon constable Jethu Singh was seen handing over a parcel wrapped in paper to one Dal Singh, an ex-Police constable. Dal Singh dropped the parcel. The parcel was taken possession of by the Superintendent of Police, Barmer. On examination, the parcel was found to contain Indian currency notes worth Rs. 6,242.00. The Snperintendent of Police, thereafter asked the two constables Jethu Singh and Hari Singh whether they had any more currency in their possession. The constables denied having any more currency with them. A search was ordered of their persons and baggage and as a result thereof. Indian currency notes worth Rs. l,825.00 were recovered from the person of Jethu Singh So far as Hari Singh is concerned, he had in his possession three parcels containing Indian currency notes of the value of Rs. 30,086/6.00. Rs. 4,000.00 and Rs. 14,072.00 respectively. The total currency recovered thus amounted to Rs. 56,225/6.00. The police also took into possession a multi-pocket jacket containing a number of account slips and letters. The raid was carried out later on, on the business and residential premises of the petitioner Beopari Mal wherefrom certain documents were recovered. It is on the basis of this that proceedings were initiated against all the three-Beopari Mal, Jethu Singh and Hari Singh under the Sea Customs Act and the Foreign Exchange Regulation Act, in pursuance of which the impugned order was passed by the Collector.