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Kanhaiyalal Agarwalla & Anr. v. Union Of India & Ors.

Calcutta High Court
Feb 24, 1976
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Structured Summary of the Opinion (Salil Kumar Datta, J.)

Factual and Procedural Background

The petitioners (appellants) sought relief under Article 226 of the Constitution after their bank locker (No. 1677 at Bank of India, Vivekananda Road Branch, Calcutta) was searched on April 8, 1975 by a Customs officer (respondent No. 4) pursuant to a search warrant. Gold ornaments and other items were seized; the petitioners alleged wrongful description of some seized articles and complained that the search and seizure were mala fide and without jurisdiction. They contended that there was no “reason to believe” justifying the search as required by S.105 of the Customs Act, and that no report was sent to the Collector as required by S.165 CrPC. They also alleged intimidation and threats of detention under COFEPOSA during a prior compulsory detention at Customs House on April 7, 1975.

By application dated April 29, 1975, a Rule Nisi (C.R. No. 11447W of 1975) issued against the Union and the State, seeking, among other reliefs, rescission of the search order, return of seized goods, quashing of any detention under COFEPOSA, and declarations that COFEPOSA and a Presidential Order of December 25, 1974 were ultra vires Articles 14, 19, 21 and 22. An interim injunction was granted restraining respondents from taking certain actions, including detention under COFEPOSA and handing over seized goods, until disposal of the Rule.

The respondents (Collector of Customs and others) applied to vacate the interim order, asserting the searches were lawful, describing the contents of lockers at the joint residence and locker No. 1677 (primary gold, ornaments, diamonds, receipts), and requesting leave to proceed with follow-up actions. Banerjee, J. granted the respondents' application by order dated January 19, 1976, relying on the decision in Union of India v. Dhirubhai Gokuldas Vora and on the effect of COFEPOSA’s inclusion in the Ninth Schedule; he vacated the interim restraint insofar as it barred issuing notices under S.124 Customs Act and S.79 Gold Control Act, but directed that no final order be passed pending the connected Rule. The present appeal is against that order and includes an application for stay of its operation.

Legal Issues Presented

  1. Whether the search and seizure of the petitioners' locker and premises were lawful and supported by the “reason to believe” required by S.105 of the Customs Act.
  2. Whether threats of detention and alleged mala fide conduct by a Customs officer justified an interim injunction restraining the respondents from detaining the petitioners under COFEPOSA before any detention order was actually made.
  3. Whether COFEPOSA and related Presidential orders are amenable to challenge on grounds of violation of Articles 14, 19, 21 and 22 when COFEPOSA has been placed in the Ninth Schedule and enforcement of those fundamental rights has been suspended by presidential proclamations under Article 359.
  4. Whether an interim order enforcing fundamental rights (or restraining action premised on threatened detention) can continue during the period when enforcement of those fundamental rights has been suspended by the President.

Arguments of the Parties

Appellants' Arguments (as presented by Mr. R.C. Deb)

  • The Assistant Collector lacked the necessary “reason to believe” under S.105 of the Customs Act when authorising the search: there was no material supporting belief, nor were reasons recorded in the authorisation or supporting affidavits, as required by authority cited in Gopikisan Agarwal v. R.N. Sen.
  • The search and seizure were mala fide and without jurisdiction; the seized gold bangles were wrongly described and some ornaments had been in family possession for 15–20 years or belonged to relatives.
  • Prior compulsory detention and alleged threats by respondent No. 4 constituted intimidation suggesting a pending mala fide detention under COFEPOSA; petitioners were entitled to interim relief restraining threatened detention even before any detention order was passed (relying on Roop Chand and related authorities).
  • COFEPOSA was argued to be void and ultra vires Articles 14, 19, 21 and 22; suspension of the right to move courts in relation to COFEPOSA was said not to be warranted.
  • Because respondents did not deny certain material allegations (e.g., wrongful description and threats), the petitioners were entitled to continued interim protection.

Respondents' Arguments (as presented by counsel for the Union and Customs officials)

  • Records produced showed material (including a report relating to the petitioners' father and their activities) upon which the Assistant Collector acted; the searches disclosed foreign metal, locker keys, primary gold, diamonds and receipts, and locker No. 1677 contained primary gold and various ornaments valued at about Rs. 2.10 lakhs.
  • The searches and seizures were lawfully made; no detention order under COFEPOSA had been passed against the petitioners as of the application to vacate the interim order.
  • Given the Presidential orders and inclusion of COFEPOSA in the Ninth Schedule, challenges to COFEPOSA on grounds of violation of Part III rights were no longer open during the period of emergency; consequently, an interim injunction enforcing those fundamental rights could not be maintained.
  • Even if threats by a lower-ranking officer (respondent No. 4) occurred, detention under S.3 COFEPOSA can only be ordered by specified high-ranking Government officers; processing by lower officers does not vitiate the requirement that a high-ranking authority must be satisfied on materials before ordering detention.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Union of India v. Dhirubhai Gokuldas Vora (1976-1 CLJ 148) Effect of inclusion of statute (COFEPOSA) in the Ninth Schedule: vires under Part III cannot be challenged in ordinary proceedings; but detention order may be challenged later on specified grounds. The court relied on this decision to hold that challenge to COFEPOSA on Part III grounds was not available post-inclusion in the Ninth Schedule; it also acknowledged that a detention order under COFEPOSA could be challenged on non-compliance or mala fides, but only after such an order is made.
Gopikisan Agarwal v. R.N. Sen, Assistant Collector of Customs and Central Excise, Raipur (AIR 1967 SC 1298) On the phrase “reason to believe”: while the Assistant Collector need not state reasons, if existence of belief is questioned in collateral proceedings the authority must produce relevant evidence to sustain that belief. The court applied this principle to require production of records; on requisition the respondents produced a report and records, and the court was prima facie satisfied that the Assistant Collector did not act without material to sustain his belief.
Roop Chand v. State of Punjab (AIR 1963 SC 1503) Where there is a serious and inevitable threat to a legal right, the petitioner need not wait until the right is actually affected; courts may grant injunctions pre-emptively. The appellants relied on this case to argue entitlement to interim injunction against threatened detention; the court considered the principle but found it inapplicable because enforcement of the fundamental rights relied upon was suspended and because detention orders under COFEPOSA require satisfaction of high-ranking authorities.
State of Madhya Pradesh v. Bhailal Bhai (AIR 1964 SC 1006) Where only a threat exists, an order commanding the authority not to take contemplated action may be appropriate; injunctions can be granted when threat of infringement exists. Cited by the appellants for the proposition that injunctive relief is available when rights are threatened. The court acknowledged the principle but held that suspension of enforcement of specified fundamental rights during emergency precluded interim relief enforcing those rights.
D.A.V. College v. State of Punjab (AIR 1971 SC 1731) Applications under Article 32 are maintainable only if fundamental rights are shown to be violated or threatened. The decision was cited to underline the need to establish violation or threat to fundamental rights for relief; the court used it in its discussion of when Article 32 remedies arise, but the primary focus here was Article 226 proceedings and suspension of remedies under Article 359.

Court's Reasoning and Analysis

The Court proceeded in a structured manner, adhering closely to materials on record and the legal position created by constitutional proclamations:

  1. On the legality of the searches: the Court, on requisition, examined records produced by the respondents and observed that there was a report relating to the petitioners' father and activities. Relying on the principle from Gopikisan Agarwal, the Court was prima facie satisfied that the Assistant Collector did not proceed without material to sustain his belief under S.105 of the Customs Act.
  2. On allegations of threats and mala fides by a Customs inspector: the Court noted the allegations and condemned such conduct if true, but held that threats by a lower-ranking officer were of limited legal consequence for pre-empting detention under COFEPOSA because S.3 detention orders can only be passed by high-ranking specified Government authorities. Those authorities must themselves be satisfied on the materials before ordering detention, and thus alleged threats by junior officers did not justify an interlocutory injunction restraining the Government from proceeding.
  3. On the availability of injunctive relief before a detention order: the Court emphasised that, while mala fides may render a detention vulnerable to challenge, such challenges are appropriately made after a detention order is passed because before that stage judicial inquiry would amount to a fishing or roving inquiry into executive materials that are not accessible to the affected person.
  4. On the constitutional context and effect of emergency measures: the Court carefully recited the sequence of proclamations under Article 352 and orders under Article 359 suspending enforcement of rights under Articles 14, 19, 21 and 22 (and later Article 19), and noted the Parliament's insertion of COFEPOSA in the Ninth Schedule by the Thirty-ninth Amendment. In that context, the Court held that challenges to COFEPOSA on Part III grounds were not available in law during the emergency and by the Ninth Schedule inclusion.
  5. On interim injunctions enforcing fundamental rights during emergency: the Court reasoned that interim orders are given in aid of the principal relief; since enforcement of the specified fundamental rights was suspended by presidential orders, an interim injunction that would enforce those rights during the emergency could not be allowed to continue. The Court rejected the argument that an already-granted interim order could continue to enforce suspended rights despite the suspension.
  6. On the seized articles and available materials: the Court inspected the seized items and observed that some gold articles were irregularly shaped and not readily described as ornaments for personal adornment. The court concluded that, taking into account the report and the seized items, it could not be said prima facie that there were no materials to place before the appropriate authority to consider detention.

Holding and Implications

Holding:

The application filed by the petitioners (appellants) for stay of the operation of the order dated January 19, 1976 was dismissed. The prayer for stay of operation of that order was refused. There will be no order as to costs.

Implications:

  • The interim injunction previously granted restraining the respondents from taking certain actions (including detention under COFEPOSA and handling of seized goods) was vacated insofar as it purported to enforce fundamental rights that were suspended by presidential orders; interim relief enforcing those rights during the period of emergency is not available.
  • The respondents were given liberty (in the earlier order of Banerjee, J., and effectively affirmed by this decision) to issue notices under S.124 of the Customs Act and S.79 of the Gold Control Act in respect of the seized goods and to proceed with follow-up actions, enquiries and adjudications, subject to the direction that no final order was to be passed pending the connected Rule.
  • The Court acknowledged that challenges to detention under COFEPOSA on the ground of non-compliance with statutory conditions or mala fides remain available in principle, but such challenges can be made only after a detention order has been passed; the present stage did not permit the interlocutory relief sought by the petitioners.
  • Because the opinion addresses the matter against the backdrop of emergency proclamations and Ninth Schedule inclusion, it concludes that the petitioners cannot, during the suspension, litigate COFEPOSA's vires under the specified Part III guarantees. The Court did not purport to set a novel precedent beyond applying existing authorities and the constitutional facts as they stood.

Order: Application dismissed. The prayer for stay is refused. Sankar Prasad Mitra, C.J. agreed. Application dismissed.

Show all summary ...

Salil Kumar Datta, J.:—This is an application in an appeal from an order dated January 19, 1976 passed by P.K Banerjee, J. in the connected rule vacating the interim order obtained by the petitioners along with the issuance of rule. The petitioners appellants stated in their petition that in pursuance of a search warrant, their Locker No. 1677 in the Bank of India, Vivekananda Road Branch, Calcutta was searched by the respondent No. 4 on April 8, 1975 and ornaments were seized under the Customs Act, 1963 and Gold (Control) Act, ???. It was stated that the said respondent wrongly described gold bangles seized as gold in shape of rod diced and rounded in the seizure list. The petitioners contended that the search and seizure were mala fide and without jurisdiction as there was no reasonable belief that the goods seized were liable to confiscation or that any goods or documents were secreted. There was no recording of reasons for the search and seizure in terms of S. 105 of the Customs Act nor was any report sent to the Collector of Customs as required under S. 165 of the Code of Criminal Procedure. Prior to search on April 7, 1975, the petitioner no. 1 and his mother were taken to the Customs House under compulsion and was detained there till 10-30 p.m During the said detention the respondent no. 4 threatened them stating that the petitioners and all their family members would be put under detention unless they gave answers to the questions according to his suggestions and would also be given electric shocks. The Custom Officers and police had kept constant vigilance over the petitioners who were asked not to leave Calcutta while papers were being made ready to secure their detention under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 hereinafter referred to as COFEPOSA. It was stated that the petitioners had reason to believe that they would be detained at any time under the said Act mala fide and for a collateral purpose. It was further said that the gold ornaments were in possession with them long before about 15/20 years and some of them belonged to their relatives. The provisions of COFEPOSA, it was said, were void and ultra vires Articles 14, 19, 21 and 22. Further, suspension of the right to move Court with respect to order of detention under COFEPOSA for enforcement of rights under Articles 14, 21, 22 of the Constitution was not warranted by law.

2. On these allegations and contentions the petitioners moved this Court by an application under Article 226(1) of the Constitution on April 29, 1975 when a Rule Nisi being C.R No. 11447W of 1975 was issued on the Union of India and the State of West Bengal and their concerned officials, calling upon them to show cause inter alia why a writ in the nature of mandamus should not issue commanding them to act and proceed in accordance with law, and directing them to rescind, recall, cancel or withdraw the search order and the seizure made by the respondent no. 4, the Proclamation of Emergency dated December 3, 1971, order dated December 25, 1974 and also the order of detention under COFEPOSA if already passed and to forbear from taking any action thereunder against the petitioners and to return the seized goods. There were further prayers for delearing COFEPOSA and the Presidential Order of December 25, 1974 as ultra vires or violative of Articles 14, 19, 21 and 22 of the Constitution and also for production of relevant records of the case for the purpose of quashing the proceeding by issuance of a writ in the nature of certiorari.

3. Along with the issue of Rule Nisi, the Court also issued an interim injunction in terms of prayer (g) which is to the following effect:

“(g). Interim order restraining the respondents, their agents and subordinates from proceeding with and/or taking any action in pursuance of the seizure made on April 8, 1975 by the Respondent No. 4 pursuant to the search Order No. 34/75 dated April 4, 1975 issued by the Respondent No. 3 and from handing over the said goods and or documents relating to the said goods to any other statutory bodies and/or authorities and also restraining them from arresting your petitioners undea Conservation of Foreign Exchange and prevention of Smuggling Activities Act, 1974 and/or from passing and/or serving any Order under the said Act on your petitioners till the disposal of the Rule.”

4. On August 8, 1975, the Collector of Customs, West Bengal and others, the respondents nos. 2 to 4 in the Rule, moved an application for vacating the interim order. It was stated that in pursuance of a search order issued by the Assistant Collector, Customs on the basis of some information, the joint residence of the petitioners and their family at 8, Jadulal Mullick Road, was searched. At the search foreign metal (pure Arode) and keys of bank lockers were found while another locker no. 1677 was disclosed but the keys were not available and were reported lost. In the said lockers primary gold as also diamonds were found along with money receipts. In respect of locker no. 1677 operated by the petitioners, which was drilled opened by Godrej Company, primary gold of 59 tolas as also new ornaments and ornaments not commonly used for personal adornment, diamond rings — all valued at about Rs. 2.10 lakhs were found. The petitioners were called upon to appear before the Customs authorities for evaluating seized goods on different dates but it was of no avail. It was said that the searches were lawfully made and further that no detention order under COFEPOSA was passed against the petitioners. It was prayed that the respondents should be given leave to proceed with follow-up actions, enquiries, investigations and adjudications of the cases in connection with the search and seizure effected on April 8, 1975.

5. This application, which was opposed, was allowed by Banerjee, J. by the impugned order dated January 19, 1976. It was held following the decision of Union of India v. Dhirubhai Gokuldas Vora 1976-1 CLJ 148, that in view of the inclusion COFEPOSA in the Ninth Schedule of the Constitution, the vires of the Act as offending rights guaranteed by Part III of the Constitution could no longer be challenged. The interim order restraining the respondents from making the order of detention was vacated and the respondents were given liberty to issue notices under S. 124 of the Customs Act and S. 79 of the Gold Control Act in respect of the seized goods. It was further directed that no final order was to be passed pending the hearing of the connected Rule. The present appeal is against this order.

6. The petitioners appellants have filed the present application in the appeal for stay of operation of the said order pending its disposal on the same allegations as those in the petition of motion. The respondents have contested the application and prayed for its dismissal.

7. Mr. R.C Deb, learned Advocate for the petitioners appellants contended that under S. 105 of the Customs Act, the Assistant Collector of Customs must have reason to believe that any goods liable to confiscation or relevant or incriminating documents or things are secreted in any place before he himself proceed to search or authorise any officer to search for such goods, documents or things. In this case, there was no such belief as there was no material before the authority to order for search nor was any material disclosed in the authorisation order or the affidavits which, it was said, was essential as was held in Gopikisan Agarwal v. R.N Sen, Assistant Collector of Customs and Central Excise, Raipur, AIR 1967 SC 1298. In para 10, page 1301 in dealing with the contention that the provisions for “reason to believe” is purely subjective and may be arbitrary, the Court observed;

“Though under the section the Assistant Collector of Customs need not give the reasons, if the existence of belief is questioned in any collateral proceedings, he has to produce relevant evidence to sustain his belief.”

8. On our requisition, Mr. N.C Chakravarti, learned Advocate for the Union of India and Customs Officials, produced before us the relevant records. It appears therefrom that there is on record a report relating the petitioner's faither Rameswarlal and others and their activities. As the legality of the actions of the Assistant Collector and his authorised officers are the subject-matter of the connected Rule we need not probe this question further except that we are prima facie satisfied that the Assistant Collector did not proceed in the matter without any material to sustain his belief.

9. Mr. Deb next submitted that the respondents did not deny any of the material allegations in respect of the seized articles made by the petitioners in their main petition reiterated in the petition for stay before us now under consideration. The respondent no. 4 wrongfully described gold ornaments bangles as gold in shape of rod diced and rounded. The respondents did not deny the allegations about the threat and intimidation held out by the respondent no. 4, an Inspector, to put the family members in detention under COFEPOSA unless the petitioner no. 1 wrote out answers to his questions according to his suggestions. Excepting the seized ornaments some of which were manufactured 15/20 years back and some others belonged to relatives, there were no materials upon which the detaining authority could be satisfied that the petitioners were smuggling goods or abetting persons to smuggle goods or dealing in smuggled goods. Detention sought to be made as threatened on that basis would thus be void and illegal violating also the Articles 14, 19, 21 and 22.

10. Mr. Deb further submitted that there was no denial that there was a threat of detention of the petitioners under COFEPOSA and detention in the attending circumstances would be mala fide and for collateral purpose. The petitioners accordingly are entitled in law to interim orders restraining the respondents from detaining them under the said Act even if the order of detention was yet to be passed. In support of the contention reliance was placed on the decision in Roop Chand v. State of Punjab, AIR 1963 SC 1503. In this case, the Court found that the impugned order depriving the petitioner of his right to certain plots under East Punjab Holdings (Consolidation and Prevention of Fragmentation) Act, 1948 was illegal and when there was serious threat to give effect to the same, the petitioner could come to Court on the face of such threat and it was not necessary for him to wait till his right was in fact affected. The Court observed:

“…Therefore it seems to us that the inevitable result of the order is to affect the petitioner's right to property illegally. It may be that just now the right has not been affected and there is only a threat that it will be affected. But we think that the threat is sufficiently serious and the petitioner is not bound to wait till his right has actually been affected more particularly as it is not disputed that it would inevitably be affected.”

11. Reliance was also placed on the decision in State of Madhya Pradesh v. Bhailal Bhai, AIR 1964 SC 1006 in which the Court found, in agreement with the High Court, that assessment of tax under impugned notifications of Madhya Bharat Sales Tax Act, 1950 was invalid in law and directed refund of taxes paid under invalid assessment. The Court observed:

“Whore there has been only a threat to infringe the right, an order commanding the Government or other statutory authority not to take the action contemplated would be sufficient. It has been held by this Court that where there has been a threat only and the right has not been actually infringed an application under Article 226 would lie and the Court would give necessary relief by making an order in the nature of injunction. It will hardly be reasonable to say that while the Court will grant relief by such command in the nature of an order of injunction where the invasion of a right has been merely threatened the Court must still refuse where the right has been actually invaded, to give the consequential relief and content itself with merely a declaration that the right exists and has been invaded or with merely quashing the illegal order made.”

12. In D.A.V College v. State of Punjab, AIR 1971 SC 1731, which was also cited, the Court observed that applications under Article 32 of Constitution would not be maintainable in the Supreme Court unless the petitioners make out a case that their fundamental rights are violated or threatened.

13. The principles of law laid down in the above decisions appear to be as follows:

“(a). The Court will grant appropriate relief by way of injunction or restraint order whenever the fundamental rights or statutory or legal rights of persons are invaded or threatened.

(b) Before such relief is granted, the Court must find or declare the existence of such right and that such right is being illegally invaded or threatend”.

We shall proceed to examine the position in the light of the above propositions.

14. The Emergency declared on December 3, 1971 under Article 352(1) of the Constitution on threat of India's security by external aggression is continuing. The COFEPOSA came into force on December 19, 1974. On December 23, 1974 the President in exercise of the powers under Article 359(1), declared that the right to move any court with respect to orders made or to be made under COFEPOSA or to any action thereunder for enforcement of rights under Articles 14, 21, 22(4), (5), (6) and (7) and all pending proceedings in connection therewith shall remain suspended for six months (since substituted by twelve months) from the said date. On June 26, 1975 by proclamation made under Article 352(1) of the Constitution, emergency was declared as the security of India was threatened by internal disturbance. On the following day, on June 27, 1975 the right of any person to move any Court for the enforcement of the rights conferred by Articles 14, 21 and 22 and all pending proceeding in connection therewith during the continuance of the emergency declared as above for enforcement of above rights was suspended by the President in exercise of powers conferred by Clause (1) of Article 359. Parliament by the Constitution (Thirty-ninth Amendment) Act, 1975, which received the assent of the President on August 10, 1975, inserted the COFEPOSA in the Ninth Schedule of the Constitution (being item no. 104). Lastly on January 8, 1976 the President in exercise of the powers conferred by Article 359(1) suspended the right of any person to move Court for enforcement of the right conferred by Article 19 of the Constitution as also all pending proceedings for enforcement of such right during the emergency declared on the two dates mentioned above.

15. In the connected rule the petitioners have challenged the vires of the COFEPOSA as infringing the provisions of Articles 14, 19, 21 and 22 of the Constitution. Whatever may be the position at the time of issuance of the Rule, in view of the amendment to the Constitution noted above, the challenge to the vires of COFEPOSA on grounds of violation of rights under Part III as noted above is not now available in law. Accordingly there is no scope for holding that the authorities are threatening invasion of the fundamental rights of the petitioners by illegal exercise of the power. The petitioners have taken grounds that the COFEPOSA is ultra vires Article 246 of the Constitution. No argument has been advanced before us at the hearing on that ground and in view of the serious adverse effect on the security of India caused by violation of foreign exchange regulations and smuggling activities, which matter is covered by item 9 of List I of Schedule VII and of Article 248 of the Constitution, we do not think such attack is sustainable. Even if there had been such challenge, before the Court is in a position to issue injunction on threatened invasion of right, according to the above decisions, it can only proceed on the basis that the intended action has no legal warrant, which is not the case here.

16. Mr. Deb has contended with great force that the threatened action is mala fide and for collateral purpose. He drew our attention to the allegations of threats of detention of the petitioners held by the resp. no. 4 as alleged in the petition of motion which, it is said, have not been controverted by the respondents. We have carefully considered the contention so raised but it appears to us that such threats by the respondent no. 4 even if true are of no consequence though they are liable to severest condemnation. The detention order under S. 3 of COFEPOSA, can only be passed by the Central or State Government or any officer of the Central Government not below the rank of a Joint Secretary of the said Government or any officer of the State Government not below the rank of Secretary of such Government, specially empowered for the purpose. It is only reasonable to hold that the Government concerned or its officer of such high status himself will consider the materials as is enjoined by law and on satisfaction that it is necessary to prevent a person from acting in any manner prejudicial to the conservation or augmentation of foreign exchange or from smuggling goods or abetting the smuggling or concealing or keeping such goods, he will pass an order for detaining such person. It is said that officers like the respondent no. 4 will process the papers, even so the order is to be passed on satisfaction of the authority concerned who without doubt will consider all materials on record.

17. As has been held in Gokuldas Vora's case, “it may be that an order of detention passed under COFEPOSA, in spite of its inclusion in the Ninth Schedule, may be challenged on the ground that the conditions laid down in the Act have not been complied with or on ground of mala fides”. Such challenge would be available as is obvious only after the order of detention comes into existence and not before. The preamble to the Act provides as follows:

“An Act to provide for preventive detention in certain cases for the purposes of conservation and augmentation of foreign exchange and prevention of smuggling activities and for matters connected therewith.

Whereas violations of foreign exchange regulations and smuggling activities are having an increasingly deleterious effect on the national economy and thereby a serious adverse effect on the security of the State.

And whereas having regard to the persons by whom and the manner in which such activities or violations are organised and carried on, and having regard to the fact that in certain areas which are highly vulnerable to smuggling activities of a considerable magnitude are clandestinely organised and carried on, it is necessary for the effective prevention of such activities and violations to provide for detention of persons concerned in any manner therewith.”

18. Section 3 provides for making the order of detention upon satisfaction of the appropriate authority that it is necessary to pass an order of detention to prevent a person from smuggling goods or abetting the smuggling of goods, or engaging in transporting or concealing or keeping such goods or dealing with the same or harbouring persons engaged in such works. The materials which will be before the appropriate authority in connection with the detention obviously will not be available to the persons affected. So that any challenge to the decision on allegations of mala fides or the order not being in accordance with law or without materials cannot but be in the nature of fishing or roving inquiry with the aid of Court. In these circumstances an interim injunction restraining the Government from following up their investigation in respect of such clandestine activities and passing appropriate order on such investigation and materials, in the nature of things is not warranted in law. There may be cases of mala fides or excesses by executive authority which may transgress legal requirements but such acts will be open to judicial scrutiny as when the order of detention is challenged on grounds of mala fides or being not in accordance with law. As has been held in Gopikissan's case cited above, the appropriate authority will have to produce relevant materials to sustain his order of detention when the legality of the order is challenged and such judicial scrutiny has not been expressly or by implication excluded. We are conscious that there is a possibility of an innocent person being detained in custody for the time being on the basis of ex parte decision, but, in the nature of things and of the crimes which have shaken our national economy such unfortunate event cannot be avoided and care has been taken by Parliament to entrust the responsibility of passing the order of detention on officers of very high rank in the Government ensuring the passing of appropriate order. Further there are provisions for constituting the Advisory Board which is to consider the sufficiency of the grounds of detention on the basis whereof the order of detention is to be continued or revoked, thereby operating as an effective check to any arbitrary or invalid action.

19. In the instant case, it was said that there was no material other than the seized articles for consideration of the appropriate authority and the seized articles would indicate that they were not smuggled or primary gold but family ornaments which had been with them over years while some of them belonged to other relatives. Pursuant to our direction, the articles seized from Locker No. 1667 were produced and it appears that certain gold articles were there which could not be said to be gold ornaments but irregularly shaped bangles of gold unfit for human adornment. We however refrain from expressing our opinion on them except that in view of the report referred to above and in the circumstances it cannot prima facie be said that there were no materials to be placed before the appropriate authority for considering the necessity of passing an order of detention against the petitioners.

20. Mr. Chakraborty has further submitted that in view of the orders issued by the President suspending enforcement of the rights under Articles 14, 19, 21 and 22, the impugned orders of ad interim injunction must be vacated. It is well known that the interim orders are given in aid of the main relief sought for in the action. If therefore, it is not permissible to have enforcement of the rights under the said articles during the period of emergency in any action it is obvious that such right also cannot be enforced temporarily within the period of emergency which will be the effect of interim injunction. Accordingly, we are of opinion that such injunction, which amount to enforcement of the aforesaid rights during the pendency of the proceedings though temporarily, is not available during the period of emergency. There has been an argument that, as the proceedings for enforcement of such rights are suspended, if there has been an interim injunction enforcing such rights at the time of the notification of the orders suspending such rights, the proceeding cannot go on during the period of emergency with the result that the interim relief enforcing the rights under the said articles would be and continue to be available to the claimants in the proceedings in spite of their suspension. The order suspending proceedings for enforcement of fundamental rights does not amount or imply suspension of the proceeding in respect of other rights which may also be sought to be enforced along with the rights suspended. Such proceedings and any injunction in respect thereof may continue if other rights are sought to be asserted. But it cannot be said that by reason of the interim order, such suspended rights will continue to be enforced contrary to the provisions of the orders which suspend their enforcement. Accordingly, interim orders which enforce such rights during the period of emergency must necessarily be suspended. There is, therefore, ample substance in Mr. Chakraborty's contention that the interim order which purports to enforce the fundamental rights as aforesaid cannot be allowed to continue and the interim order in aid of securing such fundamental rights during emergency has got to be vacated.

21. Mr. Deb further submitted that since the application has been filed only by the Customs Officials, the order under appeal vacating the interim order should not affect the other respondents. Reliance was placed on the principle of law that injunction once granted should not be vacated in respect of the respondents who do not challenge the same. Similar contention was raised in Vora's case and was repelled as there was in fact no detention order and as such there was complete absence of any cause of action when the petitioners sought for injunction restraining the respondents from giving effect to the detention order. In the case before us, we have seen that the petitioners are not entitled in law to the injunction granted at the time of issuance of the Rule and accordingly the question of the other respondents not challenging the order becomes immaterial.

22. We put on record that Mr. Chakravarty's statement in Court to the effect that the Government does not intend to proceed against the lady petitioner appellant no. 2 unless she puts her claim to the articles seized.

23. In the view we have taken, the application filed by the petitioners appellants is dismissed. There will be no order for costs in the circumstances.

The prayer for stay of operation of this order is refused.

Sankar Prasad Mitra, C.J:—I agree.

Application dismissed.