9911796707
TMI Blog2001 (12) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... oods imported by their alleged sister concern M/s. Bharat Export Corporation under D.E.E.C. Scheme subject to the condition that they will manufacture polyester blended yarn out of the imported fiber and re-export it. The letter further says that M/s. Bharat Export Corporation has sold all the imported polyester fiber to various mills in Bombay and Ahmedabad without discharging import obligations incurred by them and part of the sale proceeds thereof have been deposited by them with the Bank either in their own name or in the name of their alleged sister-concern M/s. Bhavesh Exports Pvt. Ltd., the present petitioners. In the belief of the Assistant Commissioner of Customs, the respondent No. 1, the sale of polyester fiber was illegal as such the sale proceeds thereof were liable to be confiscated under the provisions of Section 121 of the Customs Act, 1962. In this view of the matter, request in the nature of direction was made to Bank not to allow the petitioners, M/s. Bhavesh Exports Pvt. Ltd. to withdraw any money lying in the credit of their bank account maintained with the said respondent No. 3 bank. 4.The respondent No. 3 bank has acted upon the said letter issued by respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5th November, 1993 reading as under : "Pending the hearing and final disposal of the petition, the sum of Rs. 3,00,000/- which is lying in the bank account of the petitioners with Central Bank of India, Main Branch, respondent No. 3 herein, may be kept by respondent No. 3 itself in a Fixed deposit. The petitioners shall sign all the necessary documents in that connection. The petitioners, however, shall not be entitled to withdraw the amount so deposited in a Fixed Deposit account with the 3rd respondent pending further orders. The 3rd respondent shall endorse on the Fixed Deposit Receipt the condition that the amount cannot be withdrawn by the petitioners without the orders of the Court. The petitioners to furnish to respondent Nos. 1 and 2 a xerox copy of the Fixed Deposit Receipt. No other order on the Notice of Motion. Respondent No. 3 to act on a certified copy of the Minutes." 8.The above petition came up for hearing on 29th November, 2001, after 14 years from the date of filing of the petition, and after 18 years from the date of directions issued by respondent No. 1 to the Bank. The respondents sought time to file their returns. Consequently, the same was adjourne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antive issue for consideration is as under : "Whether the action of respondent Nos. 1 and 2 in directing the Bank not to allow the petitioners to withdraw any amount lying in the credit of their bank account and not to permit them to operate their bank account is legal and valid?" FINDINGS 12.Having heard the parties, one thing is crystal clear that there is absolutely no material on record even to suggest that the credit balance lying in the account of M/s. Bhavesh Exports Pvt. Ltd. (the petitioners) represented the sale proceeds of the goods alleged to have been sold by M/s. Bharat Export Corporation, Mumbai. It is needless to mention that a long period of 18 years was sufficient to adjudicate upon the issue sought to be raised in the letter dated 17th March, 1983 written to the Bank by respondent No. 1 herein. Till today, neither any action has been taken by the Customs Department to investigate the issue raised in the said letter nor at any rate, any material is produced on record to justify the directions issued to the Bank in this behalf. 13.The learned Senior Counsel for respondent Nos. 1, 2 and 4 sought to produce zerox copies of two orders on record without there b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lleged to be guilty is at least entitled to have a show cause notice and an opportunity of hearing to put forth his case. Power to determine issues affecting rights of citizens carries with it the limitation that power should be exercised in conformity with the principles of natural justice. This opportunity was denied to the petitioners. 16.The administrative order affecting rights of citizens is quasi judicial. An administrative order which involves civil consequences must be made consistently with the rule expressed in the Latin Maxim Audi Alteram Partem. It means that the decision maker should afford to a affected party an opportunity to put forth his case, the person concerned must be informed of the case against him and the evidence in support thereof, and must be given a fair opportunity to meet the case before adverse decision is taken. The purpose of the principles of natural justice is to prevent miscarriage of justice. No such opportunity has been given to the petitioners. Any arbitrary whimsical exercise of powers prejudicially affecting the rights of the parties will offend the provision of against Article 14 of the Constitution of India. In the above, backdrop, we h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e casual and unmindful attitude of respondent Nos. 1, 2 and 4 and the manner in which this petition was defended by them. Point blank statement was made before us that the record of the case in question is not traceable; meaning thereby the same is missing. When we called upon the said respondents to file an affidavit to find out who were responsible to maintain the record so as to fix the liability, the vague affidavits were filed on record, obviously, to protect the person who may have been responsible to maintain the record in question. This reflects on the working of the Department of Customs at Mumbai. We cannot afford to ignore this state of affair. We make it clear that when the action is initiated against the citizens, it is a duty and responsibility of the persons, initiating action to support it and defend it to the best of their ability in the event of any challenge in any Court of law with whatever best material available with them. In this case no attempt was made by respondent Nos. 1, 2 and 4 to justify the action taken by them against the petitioners, though a long period of 18 years was available at their command. This obligation was shirked on the precious ground o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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