Preventive prohibition under Customs House Agents rules cannot continue once substantive licence proceedings begin.

A preventive prohibition under Regulation 21 of the Customs House Agents Licensing Regulations, 2004 is only an interim measure to keep a Customs House Agent away from the relevant offices and sections at the initial stage. Once substantive proceedings under Regulation 22 are initiated, Regulation 21 no longer serves its purpose and the prohibition becomes redundant. The Court also noted that an earlier similar order had already been set aside for breach of natural justice, so repeated parallel restraint on the same allegations could not be sustained. The impugned communication was quashed, and no view was expressed on the merits of the pending Tribunal appeal.

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Issues: Whether the impugned prohibition communication under Regulation 21 of the Customs House Agents Licensing Regulations, 2004 could be sustained when substantive proceedings concerning the licence were already in motion and the petitioner complained of denial of natural justice.

Analysis: Regulation 21 is a preventive measure meant to keep a Customs House Agent away from the offices and sections connected with the offence at the initial stage. It is not intended to operate as a continuing restraint on the business of a Customs House Agent after the matter has moved into substantive adjudicatory proceedings. Once proceedings under Regulation 22 are initiated, the purpose of Regulation 21 stands eclipsed and the prohibition order becomes redundant. The earlier setting aside of a similar order for breach of natural justice also reinforced that the petitioner could not be subjected to repeated parallel restraint on the same allegations.

Conclusion: The impugned communication was unsustainable and was quashed.

Final Conclusion: The writ petition succeeded, and the Court declined to express any view on the merits of the pending appeal before the Tribunal.

Ratio Decidendi: A preventive prohibition under Regulation 21 cannot be used as a continuing restraint on a Customs House Agent once the matter has entered substantive proceedings under Regulation 22, because the former is only an interim protective measure and becomes redundant thereafter.

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