2016 (2) TMI 579 - SC - Customs

Grant of bail to Detenu - Prosecution and arrest of person - criminal proceedings are initiated against the detenu insofar evasion of the duty payable to the Revenue on the illegally imported goods - Held that - not taking action against the detenu during the relevant period of time prima facie is a serious dereliction of duty on the part of the concerned officials who were/ have been in office of the Customs Department therefore we direct the C.B.I. to conduct investigations in this matter and submit a report to the Competent Authority to take appropriate action in this regard and submit compliance to this Court for its perusal and giving appropriate further directions in this regard. The appeals filed by the appellant-detenue are allowed by quashing the conditions imposed in the impugned order passed by the High Court. The appeal filed by the Union of India & Anr. is dismissed.

Summary

Issues:
1. Validity of condition imposed on detenu to deposit Rs. 4.5 crores for bail.
2. Maintainability of Habeas Corpus Petition filed by detenu.
3. Alleged dereliction of duty by Customs Department officials.

Analysis:

Issue 1: Validity of Condition Imposed on Detenu for Bail
The appeals were filed challenging the condition imposed on the detenu to deposit Rs. 4.5 crores for bail by the High Court. The detenu had filed a Habeas Corpus Petition contending that his arrest was unlawful and sought bail. The High Court granted bail with the condition to deposit the mentioned amount. The Supreme Court examined the case, statutory provisions of the Customs Act, and relevant legal contentions before allowing the appeals and quashing the conditions imposed by the High Court.

Issue 2: Maintainability of Habeas Corpus Petition
The Union of India challenged the maintainability of the Habeas Corpus Petition filed by the detenu, arguing that his arrest under the Customs Act was lawful. The detenu was arrested for alleged offenses under the Customs Act without seizure of smuggled goods. The High Court allowed the Habeas Corpus Petition, declaring the proceedings against the detenu as void ab initio. The Supreme Court examined the legality of the arrest and directed the C.B.I. to investigate the failure to initiate criminal proceedings, highlighting the dereliction of duty by Customs Department officials.

Issue 3: Alleged Dereliction of Duty by Customs Department Officials
The Supreme Court found the lack of satisfactory explanation for not initiating criminal proceedings against the detenu for alleged offenses under the Customs Act. It directed the C.B.I. to investigate the matter and submit a report for appropriate action. The Court emphasized the seriousness of the economic offense alleged and the need for accountability. The appeals filed by the detenu were allowed, quashing the conditions imposed by the High Court, while the appeal by the Union of India was dismissed. The Court directed the Registry to send a copy of the order to the C.B.I. for compliance with the investigation directions.