1985 (10) TMI 274 - HC - Customs

Issues Involved:
1. Legality of the seizure and confiscation of gold bars, Exide battery, and motor cycle under the Gold (Control) Act, 1968.
2. Validity of the petitioners' claims to the seized gold.
3. Compliance with procedural requirements under the Act.
4. Exhaustion of alternative remedies and delay in filing the writ petition.

Issue-wise Detailed Analysis:

1. Legality of the Seizure and Confiscation:
The officers of the Madras Custom House conducted a search on the night of 24-6-1974 and recovered 142.79 kilograms of opium from a premises. During the search, a Jawa motor cycle with two riders was stopped, and 16 gold bars weighing 4148 grams were found concealed in the Exide battery of the motor cycle. The riders did not possess any permit or authorization under the Gold (Control) Act, 1968, leading to the seizure of the gold bars, Exide battery, and motor cycle. The seized gold was found to be between 23 and 24 carats of purity. The Additional Collector of Customs, Madras, ordered the confiscation of the 16 bars of gold and the Exide battery under Section 71(1) of the Act, and the motor cycle under Section 72 of the Act, with a redemption fine of Rs. 2,000 for the motor cycle. A personal penalty of Rs. 50,000 was imposed on the petitioner in W.P. 3155 of 1980.

2. Validity of the Petitioners' Claims to the Seized Gold:
The petitioner in W.P. 3155 of 1980 claimed that he was transporting the gold for one Vaidyanathan of Vedaranyam, who promised him Rs. 4,000 for the task. However, Vaidyanathan denied any knowledge of the petitioner or the gold. The petitioners claimed the gold was ancestral property imported into India before 1959. Despite opportunities, the petitioners failed to produce any documentary evidence to substantiate their claims. Two claimants, Amina Bi and Halima Nachiar, withdrew their claims, further weakening the petitioners' position. The appellate and revisional authorities also found no evidence to support the petitioners' claims, leading to the rejection of their appeals and revisions.

3. Compliance with Procedural Requirements:
The petitioners argued that under Section 16 of the Act, the gold referred to did not include articles or ornaments but only primary gold, and since their possession did not exceed the limit prescribed under Section 16(5)(b)(ii), there was no need for a declaration. The court, however, found that the seized gold was primary gold, and its possession was prohibited under Section 8(1) of the Act unless held in the manner provided by the Act. The court referred to previous judgments, including Phanindra v. Union of India - AIR 1978 Cal. 544 and Vipin Maneklal v. Sushil Kumar - AIR 1983 Delhi 307, which supported the view that primary gold possession was illegal without proper authorization.

4. Exhaustion of Alternative Remedies and Delay in Filing the Writ Petition:
The petitioner in W.P. 3155 of 1980 did not appeal or seek revision against the order of confiscation and approached the court after about four years. The court noted that the petitioner had not exhausted alternative remedies available under the law and dismissed the writ petition on grounds of laches.

Conclusion:
The court found no merit in the petitioners' claims and upheld the confiscation of the gold bars, Exide battery, and motor cycle. The petitioners failed to establish any right or interest in the seized gold, and their possession of primary gold was deemed illegal under the Gold (Control) Act, 1968. Consequently, the writ petitions were dismissed with costs, and the rule nisi was discharged.

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