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1983 (3) TMI 276

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..... s son, the material facts, in a brief compass, are - (a) consequent upon a check carried out on 21-1-1967 in the licensed business premises of M/s Muthuswamy Chettiar & Sons, Madurai, of which the Appellant and his son were, amongst others, partners, two bags containing 307.00 gms. of primary gold, 2583.200 gms. of gold ornaments unaccounted in the prescribed registers of the firm along with some amount in cash and 368 chits containing identifying particulars were seized ; (b) the Appellant was found to have contravened Rules 126F(1), 126C(1) and 126H(2) of the Defence of India Rules, 1962 and was penalised by (i) confiscation of the entire gold weighing 2890.200 gms. in all, subject to redemption by the Appellant himself, or by the firm .....

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..... -5-1982. 2.  In the present appeal, the Appellant impugns the rejection on the grounds, inter alia of the failure of the afore said authorities to - (a) furnish a reasoned order in appeal; (b) appreciate that -- (i) the offence in question was committed not in his individual capacity by the Appellant but as partner of M/s Muthuswamy Chettiar & Sons ; (ii) nevertheless, the licence was renewed year after year in favour of the aforesaid firm ; (iii) the Appellant's conduct after the check and seizure had been so much above board that he is entitled to a licence in his own name ; (iv) the revision petition in the penalty proceedings was preferred on behalf of the firm only in respect of proceedings, which, in essence, were initiate .....

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..... d be straightaway rejected for that reason alone, without more ; (iii) on the language of the aforesaid Rule 2(e), the previous penalisation of the applicant for licence can be only one of the factors, amongst others, which "the Administrator shall have regard to" and not the sole criterion ; (iv) accordingly, it has to be cumulatively considered along with the other criteria and, in particular, these specified in clauses (a), (b) and (c) of Rule 2 of the Licensing Rules, relevant to the instant case ; (v) it is only after such consideration of the totality of the relevant criteria that an application for licence could be either rejected or granted ; (vi) there is nothing on record to show that all the aforesaid criteria relevant to the .....

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..... e duly taken into account and considered cumulatively or collectively to determine the eligibility of an applicant for licence and not any one of them solely or in isolation. Reliance was placed on the decisions reported in -- (i) (1909) 2 K.B. 703 (McDermott v. Owners of S.S. Tintoretto), (ii) AIR 1943 P.C.164 (Ryots of Garabandho v. Zamindar of Parlakimidi), (iii) AIR 1957 Orissa 121 (New Orissa Transport Co. v. Regional Transport Authority, Cuttack), (iv) AIR 1971 Madras 245 (Sundarlingam v. State of Madras) for a construction of the aforesaid expression. (b) The Senior Departmental Representative, on the contrary, contended that if, in the circumstances of the case, the applicant has been convicted of an offence or any penalty had .....

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..... cant in relation to any prior offence under the Gold (Control) Act committed by him. It was observed in the course of the judgment that the factum of the previous conviction of the applicant of an offence under the Gold (Control) Act, 1968 or the imposition of any penalty is "a relevant matter to be taken into consideration" for refusing a licence. This proposition is not disputed by the learned Counsel for the Appellant. His contention, on the contrary, is that all relevant matters arising for consideration in terms of Rule 2 have not been taken into account, notwithstanding that it was a mandatory requirement of the said Rule in the context of the use of the expression "shall have regard to the following matters". (b) To a similar effect .....

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..... ard. 9.  The issue of the show cause notice in relation to the matter specified in clause (e) of Rule 2 of the Licensing Rules, does not, necessarily, imply that the other relevant matters enumerated in the said Rule have not been duly taken into account. The enquiry is in respect of those matters the Administrator may think fit. It is for the Administrator to decide which of the matters enumerated therein shall be enquired into. It is not as if once he enquires into one of the matters, he has not taken into account the others. 10.  Nor can the satisfaction of the Administrator in regard to the issue or otherwise of the licence, being discretionary in the light of the criteria laid down in Rule 2, interfered with, unless it is n .....

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