TMI Blog1989 (3) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... (charas) skilfully wrapped with cellophene paper covered with brown paper having yellow gnoting. Because of such was coating no smell of hashish was emaraled outside. At the baskets 193 kg. nett (240 kg. gross) of hashish was found. The international value of the said hashish was approximately rupees one crore fifteen lacs. At the time of such examination of the said goods J. Sale, holder of French passport No. 344/81 was not present. The investigation branch was immediately put on action and investigation stated in the matter. As a part of such investigation not only the consignor J. Sale was searched for at Grand Hotel as well as at the premises of M/s. Jeena Co. and also for seizure of incriminating documents in connection thereof. The office of M/s. Jeena Co. was also searched and several persons including two executives of M/s. Jeena Co. were interrogated. Summons were issued under Section 108 of the Customs Act. The result of such searches and seizures and/or interrogations revealed that various documents were seized from the office of M/s. Jeena Co. One Janardan Thakur and K.K. Bhattacharji, two senior personnel of M/s. Jeena Co. were interrogated. As a result of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i and Janardan Thakur were arrested. The Collector of Customs G. Sarengi issued on 26th August 1986 an order suspending the writ petitioner from further acting as a Customs House Agent pursuant to the licence granted to M/s. Jeena Co. to act as a Customs House Agent with immediate effect. In the said notice it was stated that a consignment of export cargo (charash) weighing about 230 kg. gross and 193 kg. net valued at approximately 11.50 less which is equivalent to one crore and 15 lacs approximately in the international drug had been seized on 21st August 1986 at shed No. 4 Netaji Subhas Dock, Calcutta. It had further been stated in the said order that M/s. Jeena Co. acting as the agent on behalf of the exporter J. Sale for clearance of the said consignment from the customs had filed a shipping bill dated 18th August 1986 declaring the contents of the consignment as tourist purchases. Upon preliminary enquiry it was indicated in the said order itself that it appeared that M/s. Jeena Co. wereprima facie involved in the admitted export of the said narcotics in the manner as indicated in the said order itself i.e. that M/s. Jeena Co. were not in possession of any letter of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks any misconduct which, in the opinion of the Collector, renders him unfit to transact any business in the Customs Station. In sub-rule (2) of Rule 21 notwithstanding anything as contained in Regulation (1) the Collector may, in appropriate cases, where immediate action is necessary, suspend the licence of the Customs House Agent where an enquiry against such agent is pending or contemplated. 3. From the submissions of the Learned Lawyers appearing both on behalf of the appellant and on behalf of the respondents it had transpired that when such order was passed under Regulation 21 by the Collector of Customs it was in the contemplation of the Collector to hold an enquiry. Since then in fact, an enquiry had been held and according to the hearned lawyer appearing on behalf of the respondents final order has already been passed where from an appeal had been preferred by the respondent to the authorities concerned. Rule 23 provides for the procedure for suspending or revoking the licence under Regulation 21. Under various Rules and/or Regulations procedure and the method had been provided how such enquiry is to be held. It provides that while the Collector may issue a notice in writ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an emergency and there was no reason why such action should not include making of an order of interim suspension. In the instant case not only the observation of the learned Judges of the Supreme Court with full force apply to the facts and circumstances of the case but over and above that the specific provision as made in Regutation 21 sub-regulation (2) for making interim order for suspension also gives wide amplitude and power to the Collector of Customs in a given case to pass such interim order. In the instant case, the case of the respondent was that by passing such interim order for suspension of the licence, the rules of natural justice had been violated inasmuch as no opportunity was given to the respondent of a hearing. Hence, there was a clear violation of the principle as based on the Latin maxim audi alterem parteim. 4. In the case reported in Camilla Molinaro v. Jessey A.I.R. 1971 SC 40 it was observed that rules of natural justice are not embodied rules nor can they be elevated to the position of fundamental rights. Their aim is to secure justice or to prevent miscarriage of justice. These rules can operate only in areas not covered by any law validly made. They d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsion on 1st September, 1987 the petitioner challenged the vires of clause 21 sub-clause (2) of the Regulation. The learned Judge in his judgment did not strike down the said Regulation 21 sub-regulation (2) on the ground of being in contravention with the constitutional provisions. The respondent although urged that point before the learned trial court, but did not choose to file any cross appeal being aggrieved thereby. Under the circumstances this Court is not called upon to consider as to the vires of Regulation 21 sub-regulation (2). Regulation 21 sub-regulation (2) provides that the Collector may in appropriate cases where immediate action is necessary, suspend the licence of a Customs House Agent in a case where an enquiry against such an Agent is pending or even contemplated. To our mind, such power under sub-Regulation (2) of Regulation 21 has given the Collector a very wide discretionary power to suspend the licence of a Customs House Agent. While taking such action the Collector of Customs is not confined to the grounds as specified in sub-regulation (1) but in order to take such action the Collector must be fully satisfied the immediate action is necessary. Although suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollector of Customs pass such order. Under the circumstances, there was no attempt to get the impugned order validated by additional grounds later brought out in the affidavit filed by the Collector of Customs. 8. On three broad different grounds such licence was suspended, that is, that the writ petitioner failed to discharge the responsibility as a Customs House Agent in a proper manner, they have also aided and abetted Mr. J. Sale in the attempted export of the consignment of narcotics; and also as an enquiry against Jeena Co. was contemplated. 9. While construing the said rule this court if introduces something which the rules did not provide by allowing a hearing to the parties concerned, to our mind, that would defeat all purpose of the said rule and sub-rule of exercising powers in cases of emergency, inasmuch as it would paralyse the administrative process or frustrate the need of utmost promptitude in cases where necessity so demands for exercise of such emergent powers. The question of the writ petitioner getting reasonable opportunity of hearing has been provided for in the Rule 23 itself before any final order is passed. It is true that the revocation of the licen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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