2009 (7) TMI 1326 - HC - FEMA

Summary

Issues involved:
The appellant challenged the order of detention u/s 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, passed by the learned Single Judge. The issues included the jurisdiction of the court, delay in executing the detention order, and the justification for preventive detention.

Jurisdiction of the Court:
The appellant contested the detention order on the grounds of jurisdiction, as it was passed at Gandhinagar, Gujarat, while he anticipated execution in Ludhiana. The Single Judge held that the court had territorial jurisdiction based on the alleged violation of the right to life and liberty within its jurisdiction, citing precedent cases.

Delay in Execution of Detention Order:
The detention order was passed five years prior, for a one-year period, but was never executed. The appellant relied on previous judgments where orders were quashed due to significant delays in execution. The court, considering the lack of execution and the cited precedents, concluded that the order of detention should be quashed.

Justification for Preventive Detention:
The detention order was based on allegations of evasion of customs and central excise duties by the appellant. Statements from individuals implicated the appellant in illegal activities related to duty evasion. However, due to the significant delay in executing the order and lack of satisfactory explanation for the delay, the court decided to quash the order with the possibility of a fresh order if necessary.