Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Defence of India Rules. 1962 - Part XIIA - rr.126-I.126L(2). l 26M - Confiscation of gold -Law applicable to pending adjudgment proceedings in respect of such confiscation- |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Defence of India Rules. 1962 - Part XIIA - rr.126-I.126L(2). 26M - Confiscation of gold -Law applicable to pendingadjudgment proceedings in respect of such confiscation- In 1965, residential premises of appellant: father was searched wherein240kgs gold was found and seized under 1962 Rules-1962 Rulesrepealed by the 1968 Ordinance which in turn was repealed byGold Control Act of 1968- However. u/s.116(2) of the Act, by wayoffiction, anything done under the 1968 Ordinance or Part XII ofthe 1962 Rules, was deemed to have been done under the said Act- Collector of Central Excise and Customs ordered confiscation ofthe entire gold with an option to legal heirs of appellants at her(dnce dead) to redeem the gold by paying redemption fine ofRs.2.5crores- Appellate Tribunal reduced the redemption fine toRs.12.5Lacs which was the value of gold at the date of the seizure in terms of the Gold Control Act of 1968- High Court, however.held that the case of appellant is governed only by the 1962 Rulesand not by the Gold Control Act of 1968- Propriety of- Proceedingspending under Part XIJA of the 1962 Rules, if would be deemed tocontinue under the Gold Control Act of 1968-:,Held: A proceedinginitiated under the 1962 Rules and pending as on the date of the FGold Control Act of 1968 will have to be concluded in accordance. . ., .with the 1962 Rule.~ in view of s.116 of the Gold Control Act of1968- The fiction created u/s.116 does not deal with the lawapplicable .to pending proceedings - The purpose' offiction is notto ·alter the law applicable to. the adjudgment proceedings - Thus.the adjudgment of confiscation of the appellants gold is requiredto be made only in accordance ,with the 1962 Rules and not theGold Control Act of 1968 ,.-,Constitution. Of India - Art.352 - TheGold (Control)•Ordinance, ;1968":-'S.'117~ Gold Control Act, 1968 -Gold( Control) Act, ·1965 .-Defence of India Act (51 .of1962) c- ss.1(3) and 48(2)-Defence ofIndia Ordinance (4of1962)-Defenceof b1dia Ordinance (6 of 1962).Defence of India Rules, 19112- Rules repealed by 1968Ordinance- s.117 of the Ordinance providing for the consequencesof such repeal declared that s.6, 1897 Act would apply- Effect ofsuch declaration- Held: Rules remained unaffected in respect ofthe various legal proceedings referred to in s.6(e) of the 1897 Act,either pending or concluded and other appropriate consequencesspecified in the Rules would follow - The Gold (Control) Ordinance,1968 - General Clauses Act. 1897 - s.6.Interpretation of Statutes - Effect of repeal of an Ordinanceby an enactment - 1962 Rules repealed by the 1968 GoldOrdinance- Gold Act of 1968 repealed the 1968 Ordinance itself.but did not make a declaration that the 1962 Rules were repealed -Issue as to whether the 1962 Rules stood irrevocably repealed Held: Efficacy of the provisions of an Ordinance would not in any way be dominated or abrogated unless there is a subsequentcountervailing legislation - 1968 Ordinance was followed up by alegislative action (Gold Act) which did not disapprove the contentof the Ordinance - Thus. the 1962 Rules stood repealed bythe Ordinance notwithstanding the fact that the Ordinance itselfcame to be repealed subsequently by the Gold Act - Repeal of the1968 Ordinance does not revive the 1962 Rules - Defence ~fIndiaRules, 1962 - The Gold (Control) Ordinance, 1968 - Gold ControlAct,1968 - General Clauses Act, 1897.Words & Phrases - 'Adjudged', 'Confiscation' - Meaningof. in context of Defence of India Rules, 1962 - Discussed.Defence of India Rules. 1962 - Part XIJA - Scheme of -Discussed.Defence of India Rules, 1962 - r.126M(8)(a) - Redemptionfine to he paid in lieu of confiscation of the gold seized under theZ962 Rules - Basis for determination of - Plea of appellant thatconfiscation fine is to he determined with reference to the value ofgold on the date of the seizure, in terms ofs. 73. Gold Control Act r/w s.2(v) thereof- Held: Rule 126M(8)(a) does not oblige the officerto determine the amount of fine on the basis of value of the confiscated gold either with reference to the date of its seizure or Aon the date of ac1judgment of confiscation- Further, there is nothingin s. 73 of the Gold Control Act which requires that the value of thegold for determining the fine should be the value of gold as on thedate of the seizure- s. 73 applies only to those cases whereconfiscation is under the Gold Act - High Court rightly held that Bs. 73 would not apply to the instant case - Amount of fine to be paidin lieu of confiscation of gold would he the 1iiarket .value of gold onthe date on which the owner exercises the option to pay the fine inlieu of c011fiscation, as rightly held by High Court to be Rs.11. 04crores - Further. appellant to pay interest @ 10% p.a. on such fineto redeem the gold - Gold Control Act (45 of 1968) - ss. 73 and C2(v).Defence of India Rules, 1962 - r.126M(8){a) - Redemptionfine to be paid in lieu of confiscation of the seized gold - Discretionto the Act judging Officer - Nature of such discretion - Discussed. |
Judge | Hon'ble Mr. Justice Jasti Chelameswar |
Neutral Citation | 2017 INSC 1130 |
Petitioner | Gunwantlal Godawat |
Respondent | Union Of India & Another |
SCR | [2017] 14 S.C.R. 369 |
Judgement Date | 2017-11-22 |
Case Number | 4711-4712 |
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