Customs auction proceeds withheld unlawfully: writ relief and compensatory interest were available for delayed remittance.

Writ jurisdiction was held maintainable where customs authorities had admittedly withheld auction sale proceeds and the claim did not require trial of disputed facts, so the petitioner was not driven to a civil suit. On the merits, the Court treated prolonged retention of the balance sale proceeds as unjustified under section 150 of the Customs Act, 1962, and held that compensatory interest was payable for the delay. The statutory rate notified for customs refunds was applied as a fair measure of restitution, even though the amount was not characterised as a refund of duty in the strict sense.

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Issues: (i) whether the petitioner was entitled to invoke writ jurisdiction for relief against the customs authorities instead of being relegated to a civil suit; (ii) whether interest was payable on the delayed remittance of the auction sale proceeds of the imported goods.

Issue (i): Whether the petitioner was entitled to invoke writ jurisdiction for relief against the customs authorities instead of being relegated to a civil suit.

Analysis: The delay in payment did not involve disputed questions of fact requiring trial. The claim arose from the admitted withholding of the balance sale proceeds after auction and the prolonged inaction of the department. In such circumstances, the Court found no justification to drive the petitioner to a civil suit and held that the writ remedy was maintainable.

Conclusion: The petitioner was entitled to maintain the writ petition.

Issue (ii): Whether interest was payable on the delayed remittance of the auction sale proceeds of the imported goods.

Analysis: Section 150 of the Customs Act, 1962 governs appropriation of sale proceeds and contemplates payment of the balance to the owner after adjustment. The respondents retained the balance for an inordinate period even after the statutory framework was amended, and the Court treated such withholding as unjustified. Though the amount was not treated as refund of duty in the strict sense, the Court held that the petitioner was entitled to compensation for the delay and applied the rate of interest notified for customs refunds as the appropriate measure.

Conclusion: Interest was payable on the delayed payment of the auction sale proceeds in favour of the petitioner.

Final Conclusion: The petitioner succeeded in obtaining monetary relief for the prolonged retention of the auction proceeds, and the customs authorities were directed to compute and pay interest on the delayed amount.

Ratio Decidendi: Where customs sale proceeds are unlawfully retained after the owner's entitlement is ascertained, the writ court may grant compensatory interest by applying the statutory refund rate as a fair measure of restitution.

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