Supreme Court Upholds Decision on Reward Payment for Clandestine Import Information

The Supreme Court dismissed the Civil Appeal, upholding the High Court's decision on reward payment for providing information on clandestine import. The Court clarified that the dismissal did not imply acceptance of the compensation amount. It set aside the High Court's direction to pay interest on the ex-gratia payment and costs, emphasizing that reward payments are discretionary. The Court affirmed the decision of the High Court regarding the reward payment, except for the mentioned modifications.

---

---

Issues:
1. Reward payment dispute regarding information on clandestine import.
2. Interpretation of the High Court order regarding reward amount and interest.
3. Contempt petition and the role of the Supreme Court in the matter.

Analysis:
1. The case involved a dispute over the reward payment for providing information on clandestine import of machinery without duty payment. The Department confirmed the import, levied duty, and penalties based on the information provided by the Respondent. The Customs, Excise & Gold (Control) Appellate Tribunal upheld the decision, making it final. The Respondent received an initial reward amount, followed by a writ petition in the High Court for the final reward.

2. The High Court directed the payment of the final reward amount with interest, setting a deadline for payment. A Rewards Committee was formed, which determined the compensation payable and made a partial payment. The Supreme Court, after reviewing the case, found no merit in challenging the High Court order as the Committee had decided on the payable amount. The Court clarified that the dismissal of the appeal did not imply acceptance of the compensation amount or affect the Contempt Petition pending in the High Court.

3. The Supreme Court referred to previous judgments emphasizing that reward payments are discretionary and not a vested right, considering them as ex-gratia payments. Therefore, the Court set aside the High Court's direction to pay interest on the ex-gratia payment and the portion awarding costs. The Court concluded by dismissing the Civil Appeal, except for the modifications mentioned, and upheld the decision of the High Court regarding the reward payment.

---