Over 2 Kg Gold seized 20 yearso ago : High Court declines to return even after payment of fine and redemption fee

Kerala High Court Denies Relief for Delay in Redemption of Confiscated Gold. Court Orders Refund of Redemption Fine and Penalty Due to Inordinate Delay in Compliance by Legal Heirs

In a significant ruling, the Kerala High Court, comprising Justices A. Muhamed Mustaque and Harisankar V. Menon, dismissed an appeal filed by the legal heirs of late K. Padmanabha Bhattar, seeking the return of confiscated gold ornaments or their equivalent value. The court found that the appellants were barred from relief under Article 226 of the Constitution due to an inordinate delay of over 20 years in complying with the directions issued by the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT).

The case originated from the seizure of 2186.900 grams of gold from Bhattar's premises in 1972 under the Gold (Control) Act, 1968. Despite CEGAT's 1996 order allowing redemption of the gold upon payment of a fine, the appellants delayed the payment until 2018. The court noted that the gold had been disposed of in 1983 according to extant procedures, rendering the return of gold or its equivalent impossible.

In their defense, the appellants relied on a 2018 Supreme Court judgment, but the High Court found it inapplicable due to the stark delay and laches in the present case. While dismissing the appeal, the court ordered the refund of the Rs. 40,000 redemption fine and Rs. 15,000 penalty paid by the appellants in 2018, directing the respondents to complete the refund within three months.

The judgment underscores the judiciary's firm stance on adherence to procedural timelines and the consequences of delay in seeking judicial relief.

Bottom Line:

Delay and laches in seeking relief under Article 226 of the Constitution - Remedy barred due to inordinate delay - However, refund of redemption fine and penalty directed.

Statutory provision(s): Article 226 of the Constitution of India, Gold (Control) Act, 1968, Section 5 of the Kerala High Court Act, 1958

P. Ramakrishna Bhattar v. Commissioner of Central Taxes, (Kerala)(DB) : Law Finder Doc Id # 2791883