2016 (3) TMI 658 - HC - Customs

Court dismisses writ petitions challenging Settlement Commission proceedings, deems premature; petitioners can challenge orders later.

The Court dismissed the writ petitions seeking prohibition against the Settlement Commission's proceedings, emphasizing that the petitions were premature ... Writ of prohibition - departure from the rules of natural justice - opportunity to be heard - prematurity of judicial intervention - jurisdiction - reserved ordersWrit of prohibition - departure from the rules of natural justice - opportunity to be heard - reserved orders - prematurity of judicial intervention - Whether a writ of prohibition should be issued to restrain the Settlement Commission from proceeding in the Settlement applications on the ground that the Petitioners were denied an opportunity of being heard. - HELD THAT: - The Court held that the petitions were premature. It applied the settled principle, as explained in S. Govinda Menon v. Union of India, that a writ of prohibition is available to restrain excess or absence of jurisdiction and also for departure from rules of natural justice. However, since it was not alleged that the Settlement Commission lacked jurisdiction and because orders in the Settlement applications had only been reserved, the Court declined to enquire at this interlocutory stage whether there had been a denial of hearing. The Court observed that, in the circumstances, issuing a writ of prohibition before the Settlement Commission has pronounced its order would be speculative. The Petitioners were not precluded from raising the same grounds in challenge to any adverse final order of the Settlement Commission. [Paras 8, 9, 10]Petitions dismissed as premature; no writ of prohibition issued at this stage and Petitioners may urge the same grounds against any adverse final order of the Settlement Commission.Exemption allowed - Whether exemption (from court-fees/filing formalities) prayed for in the related applications should be granted. - HELD THAT: - The Court granted the applications for exemption, allowing them subject to usual exceptions, and disposed of those applications accordingly. [Paras 1, 2]Exemption allowed subject to all just exceptions; those applications disposed of.Final Conclusion: The writ petitions seeking prohibition were dismissed as premature because the Settlement Commission's orders were only reserved; the petitioners remain free to challenge any adverse final order on the grounds asserted. The related applications for exemption were allowed and disposed of. Issues:1. Writ petitions seeking prohibition against Settlement Commission's proceedings.2. Allegation of denial of hearing and departure from natural justice.3. Jurisdiction of the Settlement Commission.Analysis:1. The judgment pertains to two writ petitions seeking a writ of prohibition against the Settlement Commission, Customs and Central Excise, to halt proceedings in specific settlement cases. The petitions aimed to prevent the Commission from continuing the proceedings without providing the petitioners with an opportunity to be heard.2. The petitioners contended that their legitimate request for an adjournment to hear their changed counsel was not granted by the Settlement Commission. They argued that orders were reserved without hearing them, solely based on the written submissions of the respondents. The petitioners relied on the precedent set by the Supreme Court in S. Govinda Menon v. The Union of India (1967) 2 SCR 566 to support their plea for a direction to the Settlement Commission to refrain from proceeding further until the petitioners are given a chance to present their case.3. The Court, after hearing the submissions of the petitioners' counsel, acknowledged the concern raised but deemed the petitions premature. The judgment highlighted the legal position that a writ of prohibition aims to restrict courts or tribunals from exceeding their jurisdiction or departing from the rules of natural justice. It was noted that the petitioners did not argue that the Settlement Commission lacked jurisdiction but rather focused on the alleged departure from natural justice.4. The Court concluded that at the current stage, it was not feasible to determine if the petitioners were denied a fair hearing by the Settlement Commission. With the orders already reserved in the applications, the Court found issuing a writ of prohibition at that juncture unnecessary. However, the judgment clarified that the dismissal of the writ petitions did not prevent the petitioners from challenging the Settlement Commission's orders if adverse to them based on the same grounds in the future.5. In the final disposition, the Court dismissed the writ petitions and the pending applications, emphasizing that the petitioners could raise their concerns if needed in the future. The judgment concluded by ordering the issuance of the order dasti.