Natural justice in customs confiscation requires a real chance to show permission before adverse action can proceed.

Confiscation under customs and foreign exchange law was treated as quasi-judicial and required a real, effective opportunity to show permission before adverse action. Because the person concerned was in custody and later in jail hospital during the period fixed for explanation, the court found that the notice and statements relied on did not afford a fair chance to meet the proposed action. On that basis, the confiscation could not stand and the connected criminal complaint was also held unsustainable for breach of the statutory safeguard and natural justice requirement of prior hearing.

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Issues: Whether the confiscation of gold bars and the connected criminal prosecution were liable to be quashed for want of a real and sufficient opportunity to show cause.

Analysis: The petitioner was proceeded against under the Foreign Exchange Regulation Act, 1947 and the Sea Customs Act, 1878 on the footing that import of gold without the requisite permission was prohibited. The Customs authorities relied on show-cause notices and on statements recorded from the petitioner, but the Court found that he was in custody and then in jail hospital during the period fixed for explanation, with no effective chance to secure permission or place his case before the authorities. The confiscation power under the customs law was treated as being exercised in a quasi-judicial manner, and therefore the affected person had to be given a fair opportunity to meet the proposed adverse action. On the facts, the opportunity given was neither real nor adequate.

Conclusion: The confiscation order could not stand and the criminal complaint was also unsustainable for breach of the statutory safeguard requiring an opportunity to show permission before complaint.

Final Conclusion: The proceedings against the petitioner were quashed because the statutory and natural justice requirements of prior hearing were not satisfied.

Ratio Decidendi: Where confiscation or prosecution under the customs and foreign exchange regime is conditioned on notice and an opportunity to show permission, failure to afford a real and effective opportunity before adverse action vitiates the proceedings.

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