Reward policy realisation by adjustment can satisfy payment conditions where informant-led recovery is admitted.

Recovery by adjustment against refund claims was treated as sufficient realisation for the purposes of the reward policy where the informant's information was admitted to have led to detection of customs duty evasion and recovery of dues. The Court held that the authorities could not deny the final reward merely because the dues were not received in cash from the defaulter, and distinguished the cited precedent on the basis that the causal link between the information and recovery was admitted in this matter. A writ of mandamus was issued directing payment of the final reward, with interest in default.

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Issues: Whether the petitioner was entitled to payment of the final reward under the reward policy on the basis that the customs duty dues had been realised by adjustment rather than cash recovery, and whether a writ of mandamus could issue directing such payment.

Analysis: The respondents admitted that the petitioner's information led to detection of the evasion and that a substantial part of the dues had been recovered by adjustment against refund claims. The requirement of actual realisation under the policy was construed pragmatically, and recovery by adjustment was treated as realisation for the purpose of the reward scheme. The case distinguished the precedent relied upon by the respondents on the ground that, unlike that matter, the link between the petitioner's information and the recovery was admitted here. The Court held that, in these circumstances, the authorities could not deny the reward merely because the amount had not been received in cash from the concerned party.

Conclusion: The petitioner was held entitled to the final reward in terms of the policy, and a writ of mandamus was issued directing payment within the stipulated time with interest in default.

Final Conclusion: The petition succeeded and the respondents were directed to release the final reward amount, treating recovery by adjustment as sufficient realisation under the reward scheme.

Ratio Decidendi: Where the informer's information is admitted to have led to recovery of dues, recovery by adjustment can satisfy the policy requirement of actual realisation, and the reward cannot be denied on the narrow ground that cash recovery from the defaulter has not occurred.

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