Court Quashes Order, Directs Reconsideration of Case with Full Hearing Rights for Petitioners
In a landmark judgment, the Kerala High Court, presided over by Justice Ziyad Rahman A.A., has quashed the confiscation order of 25 kilograms of gold seized from petitioners at Thiruvananthapuram International Airport, citing violations of the principles of natural justice. The decision, delivered on March 3, 2026, mandates a reconsideration of the case, ensuring that the petitioners are granted a full opportunity to defend their case, including the right to cross-examine witnesses and present evidence.
The gold, seized by the Directorate of Revenue Intelligence (DRI) from petitioners Sareena Shaji and M. Sunilkumar, was confiscated under the Customs Act. The petitioners challenged the procedural fairness of the adjudication process, arguing that they were not allowed to declare the gold at the airport as required under Section 77 of the Customs Act, and were denied the opportunity to cross-examine key witnesses and present crucial CCTV footage.
The judgment highlights the importance of upholding natural justice, especially in cases involving civil consequences. The court emphasized that denying the opportunity to cross-examine witnesses and present evidence, including the CCTV footage showing the sequence of events, constituted a procedural unfairness that prejudiced the petitioners' defense.
The court's decision draws from precedents set by the Supreme Court, affirming that principles of natural justice must be integrated into adjudication processes, even when not explicitly mentioned in the statute. The judgment cites several Supreme Court rulings which reinforce the necessity of fair hearings and the right to present one's case fully.
In response to the petitioners' contentions, the court directed the adjudicating authority to reconsider the confiscation order, allowing the petitioners to cross-examine relevant witnesses and display the CCTV footage during the proceedings. This measure aims to establish the petitioners' alternate version of the incident and ensure a fair and just adjudication process.
The court's ruling underscores the judiciary's role in safeguarding procedural fairness and the rights of individuals against administrative actions that have significant civil consequences. This judgment is expected to have wider implications for similar cases, reinforcing the necessity for adherence to natural justice principles in adjudication proceedings under the Customs Act.
Bottom Line:
Principles of natural justice must be upheld in adjudication proceedings under the Customs Act, especially in cases involving civil consequences, to ensure fair opportunity for defense.
Statutory provision(s): Customs Act, 1962 Sections 77, 108, 122A, 123, 138B
Muhammed Ali Haji P.P. v. Union of India, (Kerala) : Law Finder Doc id # 2873123
