Interim protection from prosecution to safeguard personal liberty granted, with stay conditioned on cooperation and office-hour appearances.

The dominant issue was whether ad-interim protection should be granted to prevent initiation/continuation of prosecution and safeguard the petitioner's personal liberty pending further consideration. The HC held that interim restraint was warranted to maintain status quo and prevent prejudice to liberty, but balanced this by directing the petitioners to cooperate with the authorities and to remain present during office hours at the respondents' office as and when required. Consequently, prosecution filing was stayed and the respondents were restrained from prejudicing the petitioners' personal liberty, subject to compliance with the cooperation and appearance conditions.

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Rule was issued, returnable on a specified date. Service was waived for the Union of India and the State. The court granted ad-interim relief in terms of prayer clause (b), namely: "Till final disposal of the application for compounding, at the interim stage-(i) to stay the filing of any prosecution in the instant case, (ii) to restrain the Respondents from prejudicing in any manner the personal liberty of the petitioner, in relation to allegations of violation of any offence under Chapter-II of the Central Excise Act, 1944, connected with the application dated 24/10/2005 for 'Compounding'." The relief effectively protected the petitioner against initiation of prosecution and coercive action affecting personal liberty pending adjudication of the compounding application under the Central Excise Act. The petitioner was directed to "co-operate with the respondents" and to remain present during office hours at the respondents' office "as and when required," indicating that interim protection was conditioned on compliance and availability for investigation/administrative requirements.

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