1992 (12) TMI 50 - SC - Customs

Supreme Court grants Customs authorities chance to defend suit, sets aside dismissal order

The Supreme Court allowed the appeal, setting aside the orders dismissing the Customs authorities from the suit and passing an ex parte decree against ... Confiscation (Customs) Issues:1. Dismissal of Letters Patent Appeal by the High Court2. Confiscation and redemption of vessel under Customs Act, 19623. Claim of Customs authorities in the suit4. Dismissal of Customs authorities from the suit without due considerationAnalysis:The Supreme Court heard an appeal against the High Court's order summarily dismissing a Letters Patent Appeal due to the appellant's inability to challenge the Single Judge's order. The Single Judge's order allowed the plaintiffs to dismiss the suit against the appellants, the fourth defendant, without any relief claimed against them. The decree was passed in favor of the plaintiffs and against the vessel's owner ex parte, with a specified sum and interest.Regarding the vessel 'Korea Horizon,' it was seized by the Customs authorities and later confiscated under the Customs Act, 1962. The owner had the option to redeem the vessel by paying a fine. Penalties were imposed on the Captain and crew members. An order in the Admiralty suit stated the terms of releasing the vessel upon payment from the sale proceeds to the Customs authorities. The Customs authorities argued for the sale proceeds, but their claim was rejected based on previous orders.The Court recognized the Customs authorities' claim against the vessel and allowed them to be made party defendants in the suit. The dismissal of Customs authorities from the suit without proper consideration and on oral application by the plaintiffs was deemed improper. The Court held that the Customs authorities should have the opportunity to defend the suit, especially since the suit was otherwise undefended.Consequently, the Supreme Court set aside the orders deleting the Customs authorities from the suit and passing an ex parte decree against the other defendants. The plaintiffs were given the liberty to apply in writing for the deletion of Customs authorities from the suit, with the Customs authorities entitled to object through affidavit and oral submissions. The Single Judge would then consider both parties' contentions before passing an order.In conclusion, the appeal was allowed, and the impugned orders were set aside to ensure proper consideration of the Customs authorities' claim in the suit.