2018 (4) TMI 1587 - HC - VAT and Sales Tax

Grant of Interim Stay - suspension of CHA License - case of appellant is that learned Judge ought not to have granted such interim order, when the offence alleged against the writ petitioner in the impugned proceedings is very serious in nature and therefore, staying the impugned order of suspension, would amount to allowing the writ petition itself. Held that - There is no dispute to the fact that the learned single Judge while granting the interim order of stay, has not stated any reason in support of the grant of such interim order, so as to warrant an exercise from us to decide about the correctness or otherwise of such reasoning. The fact remains that the said interim order was granted at the time of admission of the writ petition. When such being the factual position, it is for the appellant to canvass against the interim order granted by the learned single Judge while arguing the Vacate Stay Petition. Since serious allegations are made against the writ petitioner, in the impugned order, which was put to challenge in the writ petition and in view of the fact that the learned Judge has chosen to grant the interim stay of the suspension order, we are of the considered view that the Vacate Stay Petition filed by the appellant herein before the writ Court has to be taken up immediately, so that an order on merits shall be passed in the stay petition by the writ Court. Appeal is disposed of with a request to the Writ Court to take up the Vacate Stay Petition as expeditiously as possible.

Summary

Issues:
1. Challenge against interim stay order granted in a writ petition regarding suspension of a Customs House Agent's license under Customs Act, 1962.
2. Validity of the interim stay order granted by the writ Court without detailed reasoning.
3. Arguments regarding seriousness of alleged offense and maintainability of writ appeal against interim order.
4. Need for expeditious consideration of Vacate Stay Petition by the writ Court.

Analysis:
The judgment concerns a writ appeal challenging an interim stay order granted by the writ Court in a case involving the suspension of a Customs House Agent's license under the Customs Act, 1962. The appellant, who is the respondent in the writ petition, had suspended the license of the respondent, a Customs House Agent, invoking Regulations 11(2) of Handling of Cargo in Customs Area Regulations, 2009. The writ Court had granted an interim stay without detailed reasoning, prompting the appellant to challenge the order. The appellant argued that the seriousness of the alleged offense warranted no stay, essentially allowing the writ petition. On the other hand, the respondent's counsel contended that the interim order was based on certain provisions under the Regulations, suggesting no interference was necessary. There was also a contention on the maintainability of the writ appeal against the interim order.

The High Court refrained from expressing views on the merits of the suspension order but noted the lack of detailed reasoning for the interim stay granted by the writ Court. The Court observed that the interim stay was akin to an ex parte order, allowing the respondent to seek vacation by filing a counter affidavit. The appellant had already filed a Vacate Stay Petition before the writ Court, which was pending. Given the serious allegations in the suspension order and the interim stay, the Court emphasized the need for expeditious consideration of the Vacate Stay Petition by the writ Court to pass a reasoned order on merits.

Consequently, the High Court disposed of the Writ Appeal with a request for the writ Court to expedite the consideration of the Vacate Stay Petition before the commencement of the vacation period. The Court directed the appearance of counsels before the writ Court on a specified date for submissions, emphasizing the importance of a prompt resolution. The judgment highlights the significance of timely adjudication in matters involving serious allegations and the suspension of licenses under regulatory frameworks like the Customs Act, 1962.