FIRM KALEKHAN MOHAMMAD Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal has been preferred against the judgment and decree dated 10.7.1995 passed by the IV Additional Judge to the Court of District Judge, Sagar passed in Civil Suit No. 26-A/90 whereby the suit filed by the appellant/plaintiff claiming Rs. 2 Lakhs as compensation for the loss of reputation and goodwill caused by the Respondents/defendants, was dismissed.

(2.) In this case, it is not disputed that the appellant/plaintiff firm was engaged in manufacturing of beedi in Sagar District and used to pay Central Excise duty. On 30.12.1989 during patrolling Respondent No. 4 to 7, who were the officers of the Central Excise Division, posted at Sagar, found some bags of beedis in hand cart which were seized. Notice was issued to the appellant which was replied by the appellant. Thereafter, vide order dated 9.8.1990 passed by the Respondent No. 2, fine of Rs. 1800/- was imposed on the appellant, adjudicating that the aforesaid beedis were removed from the manufacturing place without paying excise duty. In appeal, the said order was set aside by the Collector, Customs.

(3.) The grievances of the appellant is that the aforesaid seized beedis were not manufactured by the appellant and the whole proceedings with regard to imposing of fine amount was done maliciously and conducted without having any reasonable nexus, ignoring the relevant law and common prudence, just to harm the reputation and adversely affect the business of the appellant and by the act of the respondents/defendants, the reputation and business of the appellant/plaintiff has been damaged, therefore, the Respondents/Defendants are liable to pay Rs. 2 lakhs as compensation. Therefore, the suit was filed to recover the aforesaid amount.