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1981 (9) TMI 295 - SC - FEMA

Issues involved: Quashing of detention order u/s 3 of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 by Gujarat High Court and interpretation of Section 10 of the Act regarding the maximum period of detention.

Quashing of Detention Order:
The State of Gujarat appealed against the Gujarat High Court's decision to quash the detention order passed against the respondent. The order of detention was based on the respondent being found in a trawler containing contraband wrist watches. The High Court quashed the order citing lack of sufficient material to prove the respondent's involvement in smuggling activities. The High Court's decision was based on the belief that the detaining authority's satisfaction was not genuine due to insufficient evidence. However, the Supreme Court held that the High Court misdirected itself by requiring proof beyond reasonable doubt, which is not applicable in cases of detention. The Court clarified that the role of the High Court in such cases is to ensure that the detention order is based on some material, not to assess the adequacy of that material. Therefore, the Supreme Court set aside the High Court's order and allowed the appeal.

Interpretation of Section 10 of the Act:
A preliminary objection was raised regarding the expiry of the maximum detention period mentioned in Section 10 of the Act. The respondent argued that since more than two years had passed since the detention order was issued, the appeal had become infructuous. However, the Supreme Court clarified that the period of detention is calculated from the actual date of detention, not from the order date. The Court rejected the argument that individuals could avoid detention by absconding until the expiry of the period. It emphasized that the detention period specified in the Act must be served from the date of actual detention, regardless of any intervening circumstances. Therefore, the Court overruled the preliminary objection raised by the respondent's counsel.

 

 

 

 

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