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        Case ID :

        1994 (11) TMI 447 - HC - Customs

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        COFEPOSA revocation requests may be made before service, but no interim bar on execution follows pending decision. Section 11 of COFEPOSA was construed to permit a revocation request even before service of a detention order, because the words 'at any time' include the ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          COFEPOSA revocation requests may be made before service, but no interim bar on execution follows pending decision.

                          Section 11 of COFEPOSA was construed to permit a revocation request even before service of a detention order, because the words "at any time" include the post-order, pre-service stage; however, that limited right does not extend to obtaining an injunction stopping execution of the detention order while the revocation request is pending. Where the revocation plea relies on a recognised pre-execution exception, including alleged wrong purpose, the authority must examine the relevant material and record reasons in its file. On that basis, the refusal to revoke was quashed and the matter remitted for fresh consideration, without granting interim protection against execution.




                          Issues: (i) Whether a person against whom a detention order has been passed but not yet served can invoke Section 11 of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 at the pre-detention stage and obtain a restraint against execution of the order pending disposal of the revocation request. (ii) Whether the later adjudication order could require reconsideration of the revocation request on the footing that the detention order fell within the third exception recognised for pre-execution challenge.

                          Issue (i): Whether a person against whom a detention order has been passed but not yet served can invoke Section 11 of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 at the pre-detention stage and obtain a restraint against execution of the order pending disposal of the revocation request.

                          Analysis: The words "at any time" in Section 11 were construed to mean any time after the passing of the detention order, including before service. The right to seek revocation at the pre-detention stage was treated as flowing from Article 21 of the Constitution of India. However, the Court distinguished that limited right from any further right to insist that the detention order should not be executed until the revocation application is decided. The earlier Bombay view was held to be overruled to the extent it recognised such a restraint, and the later Supreme Court decision was read as not enlarging the pre-execution remedy beyond the recognised exceptional categories.

                          Conclusion: The person could invoke Section 11 before service of the detention order, but was not entitled to an injunction preventing execution pending disposal of the revocation application.

                          Issue (ii): Whether the later adjudication order could require reconsideration of the revocation request on the footing that the detention order fell within the third exception recognised for pre-execution challenge.

                          Analysis: The authority dealing with a Section 11 application was bound to consider a contention that the detention order fell within one of the recognised pre-execution exceptions, including the allegation that it was for a wrong purpose. The Court further held that the authority had to apply its mind to the material and record reasons in the file, even though those reasons need not be communicated. On examination of the file, the Court found that the petitioner's contention based on the adjudication order and alleged absence of smuggling had not been considered from the relevant legal angle. The Court therefore remitted the revocation application for fresh consideration without expressing any view on the merits of the adjudication order itself.

                          Conclusion: The impugned refusal to revoke was quashed and the Section 11 application was remitted for fresh disposal in accordance with law.

                          Final Conclusion: The writ petition succeeded only to the limited extent of requiring fresh consideration of the revocation request, while the petitioner was denied any interim protection against execution of the detention order.

                          Ratio Decidendi: Section 11 of COFEPOSA permits a pre-detention request for revocation after the detention order is made, but it does not confer a right to prevent execution of the order pending that request; where a revocation plea invokes a recognised pre-execution exception, the authority must consider it on the relevant material and record reasons in its file.


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