2019 (9) TMI 952 - HC - Customs

Non-compliance with court order leads to contempt proceedings emphasizing rule of law

The court ordered the release of goods upon the petitioner's payment of Rs. 15 lacs and providing a bank guarantee for an additional Rs. 15 lacs. However, ... Release of detained goods - initiation of proceedings under the Contempt of Courts Act, 1971 - non-compliance of this court order dated 26th July, 2019 - HELD THAT:- We issue notice to Dr. D. Gandhi, Joint Director, Directorate of Revenue Intelligence, Kolkata Zonal Unit to show cause as to why proceedings under the Contempt of Courts Act, 1971 be not initiated against him and as to why he should not be punished for non-compliance of this court order dated 26th July, 2019. He shall explain the reasons by filing an affidavit on or before the next date of hearing - This order will be communicated by the counsel appearing for the respondent no. 2 to the aforesaid officer forthwith. Similarly, we also issue notice to respondent no. 1 to show cause as to why proceedings under the Contempt of Courts Act, 1971 be not initiated against him and as to why he should not be punished for the non-compliance of order dated 26th July, 2019. Respondent no. 1 shall explain the reasons for the non-compliance of the aforesaid order by filing an affidavit on or before the next date of hearing - This order will be communicated to respondent no. 1 by the counsel appearing for respondent no. 1 forthwith. This matter is adjourned to 20th September, 2019. Issues:1. Detention of goods by respondents2. Adjudication of show cause notice for payment of redemption fine, duty, and penalty3. Non-release of goods despite payment by petitioner4. Writ petition for release of goods5. Non-compliance with court order for release of goods6. Initiation of contempt proceedings against Joint Director and respondent no. 1Analysis:1. The judgment addresses the initial detention of goods by the respondents, leading to the issuance of a show cause notice for payment of redemption fine, duty, and penalty by the petitioner. The order in original dated 17th May, 2019, required the petitioner to make these payments. Subsequently, the petitioner complied by paying the redemption fine, duty, and penalty, but the goods were not released by the respondents despite the payment.2. In response to the non-release of goods, the petitioner filed a writ petition seeking the release of the goods. The court, through an order dated 26th July, 2019, directed the release of the goods upon the petitioner's payment of Rs. 15 lacs and providing a bank guarantee for an additional Rs. 15 lacs. However, the Joint Director, Revenue Intelligence Kolkata Zonal Unit did not comply with this explicit court order for the release of goods.3. Due to the non-compliance with the court order, the court issued notices to the Joint Director and respondent no. 1 to show cause as to why contempt proceedings should not be initiated against them under the Contempt of Courts Act, 1971. Both parties were required to provide reasons for the non-compliance by filing affidavits before the next date of hearing. The court emphasized the seriousness of the non-compliance and the need for an explanation.4. The judgment adjourned the matter to 20th September, 2019, indicating the importance of resolving the issue promptly. Additionally, the court directed that copies of the order be provided to the counsels for the concerned respondents promptly under the signature of the Court Master. This step ensures that all parties are informed of the court's decision and the subsequent actions required.In conclusion, the judgment highlights the significance of compliance with court orders and the consequences of non-compliance, emphasizing the need for timely resolution of legal matters to uphold the rule of law.