2012 (12) TMI 231 - SC - Customs

Offence u/s 135 of Customs Act, 1962 - bailability of offences - held that - we had by our Order of 11th March 2011 stayed the arrest of the petitioner in connection with the subject-matter of the said file presuming that the same would be relating to the offences under the Customs Act 1962. However in the petition for vacating the said interim order it has now been brought to our notice that the subject-matter of the said file has nothing to do with the offences under the Customs Act but under the provisions of the Foreign Exchange Management Act 1999 and Prevention of Money Laundering Act 2002 referred to hereinabove in respect of which we have not expressed any opinion regarding the bailability of offences thereunder. The subject-matter of the writ petition as has also been submitted today being confined to the question of bailability in respect of offences under the Customs Act we allow the petition for vacating the interim order and dispose of Writ Petition ( Crl .) No.57 of 2011 by indicating that as far as the petitioner s submission with regard to the provisions of the Customs Act is concerned the same stands covered by the decision of this Court in Om Prakash & Anr . 2011 (9) TMI 65 - SUPREME COURT . We also indicate that the interim order regarding stay of arrest in connection with the file referred to hereinabove is vacated and the respondents would be permitted to proceed in accordance with law as far as the offences under the said file are concerned.

Summary

Issues:
1. Modification/vacation of interim order in a writ petition regarding the bailability of an offence under Section 135 of the Customs Act, 1962.
2. Clarification on the subject matter of a writ petition involving investigation under the Foreign Exchange Management Act, 1999, and the Prevention of Money Laundering Act, 2002.
3. Decision on the interim order for stay of arrest in connection with a specific file.

Analysis:
1. The judgment pertains to a Criminal Miscellaneous Petition filed by the Union of India seeking modification/vacation of an interim order passed in a writ petition regarding the bailability of an offence under Section 135 of the Customs Act, 1962. The writ petition also referenced investigations under the Foreign Exchange Management Act, 1999, and the Prevention of Money Laundering Act, 2002. The main prayer was for a writ of mandamus to declare the offence under Section 135(1) of the Customs Act as bailable. The Court noted that a previous decision had held offences under the Customs Act to be bailable. The petition was allowed, and the interim order for stay of arrest was vacated, allowing proceedings under the other Acts to continue as per law.

2. Initially, the writ petition was believed to be confined to offences under the Customs Act alone. However, it was later clarified that the subject matter of the petition also involved investigations under the Foreign Exchange Management Act, 1999, and the Prevention of Money Laundering Act, 2002. The Court had stayed the arrest presuming the matter related to Customs Act offences. Upon realizing the actual nature of the case, the Court vacated the interim order, as the question of bailability was specific to Customs Act offences only. The respondents were permitted to proceed with the investigations under the other Acts.

3. Another writ petition was mentioned where the petitioner sought time to file a rejoinder affidavit. The Court adjourned the matter for four weeks to allow the filing of the affidavit, with a directive to provide a copy to the respondents in advance of the next hearing date. This procedural aspect was separate from the main issue discussed in the judgment, focusing on the modification/vacation of the interim order in the original writ petition.

This detailed analysis outlines the key aspects of the judgment, addressing the issues raised and the Court's decisions regarding the modification/vacation of the interim order and the clarification on the subject matter of the writ petition.