1994 (8) TMI 44 - HC - Customs

Customs Act Arrest: Bail Entitlement & Jurisdiction Clarified by Supreme Court

The petitioner, arrested under Section 104 of the Customs Act, was granted release on bail by the Chief Judicial Magistrate. The Supreme Court clarified ... Arrest - Bail Issues:Whether a person arrested under Section 104 of the Customs Act is entitled to be released on bail after the expiry of the prescribed period of detention under Section 167(2) of the Code of Criminal Procedure.Analysis:The judgment revolves around the interpretation of whether a person arrested under Section 104 of the Customs Act can be released on bail after the prescribed period of detention under Section 167(2) of the Code of Criminal Procedure. The petitioner's counsel argued that Section 167(2) applies to a person arrested under the Customs Act, citing the Supreme Court decision in Directorate of Enforcement v. Deepak Mahajan. On the contrary, the Collector of Customs contended that Section 167 is not applicable to Customs Act offences, relying on a Single Bench decision. The history of relevant judgments was traced, including the Delhi High Court's ruling in O.P. Gupta's case, the Full Bench decision in Deepak Mahajan's case, and subsequent Supreme Court intervention. The Supreme Court clarified that a Magistrate has jurisdiction to authorize detention under Section 167 even for Customs Act arrests, overturning previous conflicting judgments. The judgment emphasized that the entire Section 167(2) applies, including the proviso for bail release after the prescribed period.The second issue addressed was whether the Magistrate is obligated to release a person arrested under the Customs Act after the prescribed detention period if bail is furnished. The Collector's counsel argued that this aspect was not addressed in Deepak Mahajan's case. However, the judgment clarified that Explanation I of Section 167(2) explicitly allows detention until bail is furnished, but in this case, the petitioner was willing to provide bail. The judgment highlighted the co-existence of Magistrate's remand powers and bail entitlement after the prescribed period, as per Section 4(2) of the Code. It was concluded that the entirety of Section 167(2) applies to Customs Act offences, and there is no provision in the Act restricting the proviso for bail release.In conclusion, the petitioner, who had been in custody, was ordered to be released on bail to the satisfaction of the Chief Judicial Magistrate. The application under Section 439 of the Code of Criminal Procedure was allowed, affirming the entitlement of a person arrested under Section 104 of the Customs Act to be released on bail after the prescribed detention period.