KRISHNA OIL MILL Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THIS appeal under Clause 15 of the Letters Patent Act is directed against the judgment and order dated 05. 12. 1996 of the learned Single Judge dismissing the petition in which the appellants had challenged the order of confiscation of 60 Oil Tins and 2500 kgs. Ground Nut stock. The petition came to be dismissed by the learned Single Judge with a direction that the amount in lieu of confiscated goods shall be paid to the Government with interest at the rate of 18% per annum from the date of interim relief granted by the learned Single Judge till the amount would be deposited by the petitioners with the Government authorities.

(2.) WHILE admitting the appeal, this Court had made it clear that the appeal was admitted only on the question of rate of interest awarded by the learned Single Judge on the value of the confiscated goods. On Civil Application No. 7898 of 1997 also this Court had granted interim stay against recovery only of the interest amount awarded by the learned Single Judge subject to the condition of payment of the total amount of the confiscated goods. In view of the above limited controversy, it is not necessary to set out all the facts in detail.

(3.) MR Mangukiya, learned advocate for the appellants has submitted that interest awarded at the rate of 18% is very much on the higher side and that in the facts and circumstances of the present case, no such direction should have been given by the learned Single Judge.