YASVADAN AND BROS Vs. C T A PILLAI

JUDGEMENT

(1.) This is a petition under Art. 226 of the Constitution challenging the validity of an order dated May 15, 1959 whereby the 1st Respondent as Additional Collector of Customs ordered 52 cases of wired glass belonging to the petitioners to be confiscated under Section 167(8) of the Sea Customs Act read with Section 3(2) of the Imports and Exports (Control) Act, 1947.

(2.) The relevant facts are as follows:- The petitioners are a partnership firm carrying on business as importers and dealers in glass. By a contract dated march 31, 1958 the petitioners agreed to purchase from Messrs. B. H. Mehta and co., 140 cases of wired glass on the terms and conditions recorded in the contract. Rs. 25,000/- were agreed to be paid as advance and were paid on March 31st, 1958. The contract was a forward contract and the shipment was "end of July 1958". In the first week of September 1958 the 52 cases of the goods arrived at Bombay per S. S. Byton. The bill of lading in respect of the goods was in favour of the shipper or "order" and appears to have been negotiated in favour of one P. Bhagvandas, proprietor of Hindustan Engineering and Trading Company. A letter of credit in respect of the price of the goods of the consignment was also opened on or about April 26, 1958 by P. Bhagvandas as proprietor of Hindustan Engineering and Trading Company through the Meercantile Bank of India Ltd. The goods were accordingly imported into India by P. Bhagvandas of Hindustan Engineering and Trading Co.

(3.) P. Bhagvandas tendered to the Customs authority the bill of entry "cash No. 981" dated 3rd September 1958 towards clearance of one consignment. The licence referred to in the bill of entry was