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Issues: Whether the declaration under Section 9 of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 was vitiated because the rejecting order on the bail application was not placed before or considered by the declaring authority, and whether the consequent continued detention could be sustained.
Analysis: A declaration under Section 9 enlarges the period within which the case may be placed before the Advisory Board and extends the detention period. For that reason, any material having a potential bearing on the declaring authority's subjective satisfaction must be placed before it. The rejection order on the bail application was a vital and relevant document, since it represented a judicial determination directly connected with the detenu's custody status and could influence the decision whether a declaration should be made. The authority's admitted failure to consider that order meant that the subjective satisfaction was reached without a material document that ought to have been before it. Preventive detention and declaration orders require full consideration of all relevant and vital material; suppression or non-placement of such material renders the decision unsustainable.
Conclusion: The declaration under Section 9 was vitiated and could not be sustained. The continued detention was therefore illegal.
Final Conclusion: The writ petition succeeded, the declaration order was quashed, and release was directed unless the petitioner was required in any other case.
Ratio Decidendi: In preventive detention matters, failure to place before the declaring authority a relevant judicial order on bail that may bear upon its subjective satisfaction vitiates the declaration made under Section 9.