2018 (6) TMI 759 - HC - Customs

Principle of merger - interim order merging with final order - Release of seized Gold - Held that - It is well settled that an interim order passed, merges with the disposal of the main case - In South Eastern Coalfields Ltd v. State of MP and Others 2003 (10) TMI 638 - SUPREME COURT OF INDIA , where it was held that The validity of an interim order, passed in favour of a party, stands reversed in the event of a final decision going against the party successful at the interim stage - nothing survives in the writ appeal for adjudication - appeal dismissed.

Summary

Issues:
Interim order directing release of seized gold jewelry on payment of 30% differential duty in cash and 70% through Bank Guarantee - Merger of interim order with final decision.

Analysis:
The judgment by the Madras High Court pertains to a writ appeal against an interim order in a case involving the release of seized gold jewelry upon payment of a differential duty. The interim order directed the release of the jewelry upon payment of 30% of the differential duty in cash and the remaining 70% through a Bank Guarantee to the satisfaction of the respondents. The writ petitioner was required to cooperate fully in the adjudication process initiated by the respondents for the release of the jewelry. However, the court considered the principle that an interim order merges with the final decision in a case. Citing relevant legal precedents, the court highlighted that interim orders stand reversed if the final decision goes against the party successful at the interim stage. The court referred to cases such as South Eastern Coalfields Ltd v. State of MP, Prem Chandra Agarwal v. Uttar Pradesh Financial Corporation, and State of West Bengal v. Banibrata Ghosh to support this principle.

The court concluded that in light of the legal principles and precedents discussed, there was no need for further adjudication in the writ appeal as the interim order had merged with the final decision in the main case. Therefore, the court dismissed the writ appeal without imposing any costs. The judgment underscores the legal doctrine that interim orders do not finally decide the fate of parties in litigation and are subject to and merge with the final order passed in the proceedings.