NATHMALL JALAN Vs. APPL COLLECTOR OF CUSTOMS PREVENTIVE

JUDGEMENT

(1.) THE question involved in this appeal is if the seizure and confiscation of certain bars of gold by the customs authorities is valid. The gold bars in question were despatched by one S. R. Damani from Bombay and were addressed to Nathmall Jalan, the appellant. The bars were packed in four parcels bearing Nos. 565, 566, 567 and 568.

(2.) THE customs authorities received some secret information, in consequence of which a watch was maintained near Barabazar Post Office by a customs officer on February 8, 1962. At about 9-45 in the morning one Pyarelal jalan was found coming out of the post office with a packet in his hand. He was challenged by the customs officer and on such challenge he stated that the packet carried by him contained four parcels of gold bullion, which had been sent by post from Bombay in the name of his father Nathmall Jalan. The packets were opened and were found to contain four parcels bearing Nos. 565 to 568, despatched by one S. R. Damani of 315 Kalbadevi Road, Bombay, on February 6, 1962, by air from Shroff Mahajan Post Office, Bombay. The packets were addressed to Nathmull Jalan of 85/1 Monohardass Street, Calcutta. Each parcel was insured for Rs. 200/-only and contained one bar of gold.

(3.) PYARELAL Jalan was taken to the customs House, along with the gold, and his father Nathmall Jalan the appellant was also contacted on the same day, and he also came to the Customs house. Both father and son made statements in writing regarding the gold bars. The substance of the statement of Nathmall Jalan was that he gave a sum of Rs. 1,00,000/- in cash to one shawanmall Damani on February 3, 1932, with instructions to him to go to bombay and purchase the gold bars. The payment was made in Rs. 1000/-and Rs. 100/- currency notes. The money was not withdrawn from any bank as Nuthmall kept large sums of money in his house. He did not take any receipt from Damini for the amount paid to him. Instructions were qiven to buy bombay bullion weighing 8 kilos. The gold bars are alleged to have been purchased from a bullion merchant in bombay known as Choksey Virendra Kumar Mohanlal. Being aggrieved by the seizure followed by an order of confiscation of the gold bar, the appellant moved this Court on September 27, 1962, under Art. 226 of the Constitution and obtained a rule nisi. which was discharged by a judgment and order of Sinha, J. dated august 13, 1964. This appeal is directed against the said judgment and order dated August 13, 1961