2003 (4) TMI 492 - HC - Indian Laws

Court orders immediate payment of full reward amount in mandamus case

The court granted the petitioner's request for a writ of mandamus, directing the respondent to pay the full reward amount of Rs. 68,27,522/- with interest ... Grant of reward under Reward Policy - realisation of dues by adjustment - entitlement to ex-gratia reward on admitted information - writ of mandamus to direct payment of reward - interest for delayed payment of rewardGrant of reward under Reward Policy - realisation of dues by adjustment - entitlement to ex-gratia reward on admitted information - Final reward was payable where the Department admitted that the petitioner's specific information led to proceedings resulting in recovery and the dues were realised by adjustment. - HELD THAT: - The respondent admitted that the petitioner supplied specific information which resulted in discovery of unauthorised imports and consequent recovery (admissions in the affidavit reproduced at paras 4-9 and paras 24-29). The Court treated the Department's adjustment of sanctioned refund claims against recovery as actual realisation of dues (para 5 and para 32 as noted). It rejected the contention that recovery must be in cash from the person against whom information was given, observing that had the information not been supplied no recovery or adjustment would have occurred; therefore, adjustment constitutes realisation under the policy (paras 5, 10). In view of the admission that action and recovery followed the petitioner's information, the petitioner is entitled to the final reward as per the Reward Policy dated 30-3-1985, subject to the scheme's terms (paras 3, 10). [Paras 3, 5, 10]Respondents must pay the final reward in accordance with the Reward Policy because the Department admitted the information led to recovery and such recovery by adjustment amounts to realisation.Writ of mandamus to direct payment of reward - entitlement to ex-gratia reward on admitted information - interest for delayed payment of reward - High Court may issue a writ of mandamus directing payment of the reward where entitlement is established by admission and the Department has realised the dues. - HELD THAT: - The respondents relied on Supreme Court dicta that ordinarily determination of reward involves departmental discretion and that a writ for a quantified amount may not lie where entitlement is not substantiated (paras 6-9). The Court distinguished those authorities on facts: here the Department admitted that the petitioner's information led to investigation and recovery and part payment had already been made (paras 3, 9-10). Given the admitted causal link and realised recovery, the Court found interference by writ appropriate to enforce payment. The Court directed payment within 15 days and specified interest for delay-15% per annum initially and 18% per annum thereafter with the additional 3% to be borne by the defaulting officer (para 11). [Paras 6, 9, 11]Writ of mandamus granted directing respondents to pay the final reward with specified interest and timeline where entitlement is established by admission and dues have been realised.Final Conclusion: Writ petition allowed to the extent of directing the respondent to pay the final reward in terms of the Reward Policy within 15 days with interest (15% p.a. initially, rising to 18% p.a. thereafter with the additional 3% borne by the responsible officer), and costs awarded to the petitioner. Issues:Petitioner seeking mandamus for full reward amount with interest as per Reward Policy dated 30-3-1985. Respondent denying full reward based on policy requiring actual realization of dues before payment. Interpretation of Supreme Court judgment on writ jurisdiction for reward claims. Discrepancy between Supreme Court rulings on informant's claim basis. Respondent's argument against immediate payment despite admission of recovery from informant's information.Analysis:The petitioner approached the court seeking a writ of mandamus to direct the respondent to grant the full reward amount of Rs. 68,27,522/- with interest as per the Reward Policy dated 30-3-1985. The petitioner provided crucial information to the Collector of Customs regarding smuggling activities by a specific entity, leading to the discovery of evasion of customs duty. The respondent admitted in an affidavit that the petitioner's information resulted in the discovery of unauthorized consignments and evasion attempts. However, the respondent cited the Reward Policy, stating that full reward could only be granted after the conclusion of appeal/revision proceedings and actual realization of dues.The court noted that the respondent had adjusted a substantial amount towards recovery based on the petitioner's information, even though it was not received in cash from the liable party. The court referenced a Supreme Court judgment highlighting the department's discretion in assessing reward claims and the need for informants to substantiate their claims. However, in this case, the respondent admitted the petitioner's information led to recovery, contradicting the Supreme Court's stance on informant's basis for claim.The court emphasized that the respondent's argument against immediate payment due to non-cash recovery was unfair, especially when the amount had been realized through adjustments. The court directed the respondent to pay the final reward amount within 15 days as per the policy, with interest at 15% per annum if delayed, and additional interest to be borne by the responsible officer for inaction. The petition was allowed, with costs quantified at Rs. 10,000 to be deposited within two weeks.