Redemption after confiscation fails when the owner misses a reasonable time to pay fine; no right to return survives.

Confiscated gold ornaments redeemable on payment of fine vested absolutely in the Union Government when the owner failed to exercise the redemption option within a reasonable time. Repeated notices over many years did not justify a later demand for return of the ornaments or, alternatively, the sale proceeds with interest, because the right of redemption had not been timely exercised after confiscation under the Gold (Control) Act, 1968. The claim was therefore rejected, and no legal basis remained to compel release of the ornaments or payment of their sale proceeds.

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Issues: Whether the petitioner was entitled to return of the confiscated gold ornaments or, in the alternative, to the sale proceeds with interest after failure to pay the redemption fine within a reasonable period.

Analysis: The gold ornaments had been confiscated under Section 71 of the Gold (Control) Act, 1968, with an option of redemption on payment of fine. The record showed repeated notices and communications over many years, but the petitioner did not pay the redemption fine within a reasonable time and only much later sought release of the ornaments or sale proceeds. Once confiscation took effect and the option of redemption was not exercised within a reasonable period, the property vested absolutely in the Union Government. In these circumstances, no legal basis existed to require return of the ornaments or payment of the sale proceeds.

Conclusion: The claim for return of the gold ornaments or payment of the sale proceeds was rejected and the issue was decided in favour of the Revenue.

Ratio Decidendi: Where confiscated goods are lawfully redeemable on payment of fine but the owner fails to exercise that option within a reasonable time, the goods vest absolutely in the Government and no entitlement to their return or sale proceeds survives.

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