Preventive detention based on already negatived facts cannot stand, and consequential forfeiture notices fall with it.

Where the foundational facts for preventive detention had already been judicially negatived in earlier final proceedings arising from the same circumstances, the detention order could not be sustained. The Gujarat HC treated those prior findings as conclusive on the validity of the detention basis and, in light of the Supreme Court's remand for merits consideration, held that the detaining authority had not validly established fresh grounds or properly applied its mind. The detention order, the declaration under the COFEPOSA Act, and the consequential forfeiture notices under SAFEMA were therefore quashed and set aside.

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Issues: Whether the detention order, the declaration under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, and the notices under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 were liable to be quashed in view of the earlier quashing of similar detention orders against the petitioner's brothers and the Supreme Court's remand.

Analysis: The material facts underlying the detention action were the same as those already examined in the earlier proceedings in which identical detention orders against the petitioner's brothers had been quashed. Those earlier findings had attained finality and were treated as conclusive on the validity of the detention basis. The Supreme Court had set aside the earlier refusal to entertain the challenge and remitted the matter for consideration on merits. In that setting, and in light of the settled legal position governing preventive detention and the requirement that the detaining authority must properly formulate and apply its mind to the grounds before passing the order, the impugned detention and the consequential forfeiture notices could not be sustained.

Conclusion: The challenge succeeded. The detention order dated 11.6.1976, the declaration under Section 12A of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, and the notices under Section 6 of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 were quashed and set aside.

Ratio Decidendi: Where the foundational facts for preventive detention are already judicially negated in earlier final proceedings arising from the same set of circumstances, and the detaining authority has not validly established fresh grounds, the detention order and consequential forfeiture action cannot survive.

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