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Supreme Court of India

Union Of India & Ors vs M/S. Kundan Rice Mills Ltd on 3 November, 2008

Equivalent citations: 2008 AIR SCW 7626, 2009 (1) SCC 553, 2009 (2) AIR JHAR R 402, AIR 2008 SC (SUPP) 6562, (2008) 13 SCALE 690, (2009) 1 ALL WC 157(1)

Author: Arijit Pasayat

Bench: Mukundakam Sharma, Arijit Pasayat

                                                                                     REPORTABLE


                            IN THE SUPREME COURT OF INDIA
                          CIVIL APPELLATE JURISDICTION

                           CIVIL APPEAL NOS.6457-6458 OF 2008
          (Arising out of S.L.P.(C) Nos.25591-25592/2008



Union of India and Ors. Etc.Etc.                                   ...Appellants


                         Versus


M/s. Kundan Rice Mills Ltd.                                        ...Respondent



                                      JUDGMENT

Dr. ARIJIT PASAYAT, J.

Heard.

Though these matters were listed for admission, learned counsel for the parties requested the matters to be taken up for final disposal.

Leave granted.

We find that while adjudicating an interim matter, the High Court has given a categorical finding on merits holding inter-alia that there is nothing to show that even prima facie, goods are liable to confiscation. The High Court appears to have decided the matter on -2- merits finally even though that was not the stage for doing so and was beyond the scope of adjudication of the writ petition. This is not the way the High Court should have dealt with the matter. Apart from that, the High Court has not indicated any reason as to why the condition of execution of indemnity bond equivalent to seizure value of goods and/or furnishing of bank guarantee equal to 10% of value of goods, as was stipulated by the authorities, was not justified. This also adds to the vulnerability of the order. We set aside the impugned orders of the High Court. Let the High Court hear the matters afresh. To avoid unnecessary delay, let the parties appear before the High Court, without further notice, on 17.11.2008.

The Hon'ble Chief Justice of the High Court is requested to allot the matters, i.e. CWP No.13914/2008 and COCP No.1536/2008 to an appropriate Bench.

The appeals are disposed of accordingly.

.....................J. (Dr. ARIJIT PASAYAT) .....................J. (Dr. MUKUNDAKAM SHARMA) New Delhi, November 03, 2008.