Customs House Agent licence suspension fails absent proof of knowledge or involvement in employees' alleged bribery.

Suspension of a Customs House Agent licence pending enquiry was held unsustainable where the record showed no specific evidence that the CHA knew of, or participated in, employees' alleged collection of illegal gratification. The material only indicated payments linked to fine and penalty and recovery of documents from employees, but did not establish that the firm was aware that its staff were taking bribes in the name of customs officials for assessment and clearance of cargo. In the absence of proof of the CHA's involvement, the principle that a CHA firm is not vicariously liable for an employee's bribery conduct applied, and the suspension order was set aside.

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Issues: Whether the suspension of the Customs House Agent licence pending enquiry was sustainable in the absence of specific evidence showing the CHA's knowledge of or involvement in the alleged illegal gratification by employees.

Analysis: The material relied upon showed only that money had been given in connection with payment of fine and penalty and that certain documents were recovered from employees. There was no specific finding that the CHA knew that its employees were collecting illegal gratification in the name of customs staff for assessment and clearance of cargo. In the absence of evidence of the CHA's involvement, the principle that a CHA firm cannot be made vicariously liable for an employee's act of accepting bribe applied.

Conclusion: The suspension order could not be sustained and was set aside.

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