2025 (8) TMI 1213 - HC - Customs

Writ petition dismissed as private dispute over release of gold bars; Bar mediator appointed, fee Rs.100,000 split equally

Jakir Husain @ Jakir Hussain Versus The Commissioner Of Customs & Ors.

The HC held the writ petition not maintainable as the dispute concerned a private quarrel between the petitioner and his two lawyers over release of gold ... Maintainability of writ - private dispute between the Petitioner and his own lawyers - Smuggling of Gold - seeking release of the two gold bars, collectively weighing 233 grams - HELD THAT:- This appears to be a dispute between the Petitioner and his lawyer. The Petitioner was obviously aware of the fact that the release had taken place but the said fact has not been pleaded in the present petition. However, it is also unusual that a lawyer would spend so much of money on behalf of the client and get the goods released on his own. In view thereof, the matter is a private dispute between the Petitioner and his own lawyers which would have to be resolved out of Court. Accordingly, the present writ would not be maintainable - Considering the fact that the dispute is between the Petitioner and his two lawyers, it is deemed appropriate to refer the matter to mediation. Accordingly, Mr. Rajesh Jain, Advocate, who is present in the Court, is appointed as the mediator in the present case. The fee of the mediator is fixed at Rs. 1,00,000/- which is to be borne equally by the Petitioner and Mr. Aman Kumar Yadav. If the mediation does not fructify, parties are left to avail their remedies, as per law. Petition dismissed. ISSUES PRESENTED AND CONSIDERED 1. Whether a writ under Articles 226 and 227 is maintainable where the relief sought (release of seized goods) has been materially affected by actions taken by the petitioner's authorised representative and the petitioner failed to plead those facts. 2. Whether concealment of material facts (non-pleading of the release of seized goods to an authorised representative) vitiates the petition and warrants dismissal. 3. Whether a dispute between a litigant and his advocate regarding possession and delivery of released goods is appropriate for adjudication in writ jurisdiction or is a private dispute to be resolved outside the writ forum. 4. Whether referral to mediation is an appropriate exercise of the Court's discretion where the core dispute is between the petitioner and his advocate, and what incidental directions (mediator appointment and fee allocation) are appropriate. ISSUE-WISE DETAILED ANALYSIS Issue 1 - Maintainability of writ where relief has been effected by petitioner's authorised representative Legal framework: The Court's power under Articles 226 and 227 permits relief where public law grievance persists; writ jurisdiction is not an appropriate forum to decide private disputes when the public-authority action no longer remains in issue. Interpretation and reasoning: The Court found that the seized goods had been released to the petitioner's authorised representative on payment of dues. That fact was not pleaded in the petition. Because the actual administrative action by the Customs Department (detention and subsequent release) had been completed and possession stood with the authorised representative, the core administrative grievance sought by the writ no longer subsisted in a manner warranting constitutional relief. Precedent treatment: No prior authorities were invoked by the Court in the judgment; the conclusion follows from principles distinguishing public-law relief from private disputes. Ratio: The maintainability of a writ alleging wrongful detention of goods is negated where the petitioner omits to plead that the goods were released to an authorised representative and possession has been effectively transferred; such omission renders the writ inappropriate. Conclusion: The writ was held not maintainable on this ground. Issue 2 - Concealment/non-pleading of material facts and consequences Legal framework: Petitioners must plead material facts pertinent to relief sought; concealment of material facts affects the Court's ability to adjudicate and may justify dismissal. Interpretation and reasoning: The Court observed that the petitioner was clearly aware of the release but failed to disclose that release in the petition. That failure amounted to concealment of a material fact and undermined the petition's veracity and the basis for constitutional relief. The Court treated this omission as rendering the petition liable to dismissal. Precedent treatment: No specific precedents were cited; the reasoning aligns with general principles requiring full and frank disclosure in petitions for equitable or extraordinary relief. Ratio: Non-disclosure of material facts that negate the relief sought is a sufficient ground to dismiss a writ petition. Conclusion: The petition was dismissed for concealment/non-pleading of the material fact of release. Issue 3 - Nature of dispute between litigant and advocate: public remedy vs private dispute Legal framework: Writ remedies address public law grievances; private disputes (including disputes over money, possession, or entitlement between client and lawyer) fall outside writ jurisdiction and are to be resolved through private or civil fora. Interpretation and reasoning: The Court characterized the matter as a private dispute between the petitioner and his lawyers concerning possession and financial obligations for release. Given that the administrative act (release by Customs) had occurred and the controversy concerned the relationship and obligations between client and counsel, the Court determined the dispute was unsuitable for adjudication via a writ petition. Precedent treatment: No authorities were referenced; the conclusion follows the established separation between public-law remedies and private contractual/possession disputes. Ratio: Where the substance of the controversy is a private dispute between a client and his lawyer over possession or payment, the writ jurisdiction is not the appropriate forum to adjudicate that dispute. Conclusion: The writ was dismissed as not the appropriate forum for the private dispute. Issue 4 - Appropriateness of mediation and incidental directions (appointment and fee allocation) Legal framework: Courts possess discretion to refer disputes to mediation where appropriate and may make incidental orders concerning mediator appointment and fees; mediation is particularly apt where disputes are essentially private and capable of settlement between parties. Interpretation and reasoning: Recognising the private nature of the dispute and the practical possibility of an amicable resolution between the petitioner and his advocate, the Court referred the matter to mediation. The Court appointed a mediator present in court and fixed mediator's fees, directing the cost to be borne equally by the petitioner and the advocate who had taken release of the goods. The Court left parties free to pursue other remedies if mediation failed. Precedent treatment: No precedents were cited; the exercise of discretion to refer to mediation is presented as a practical remedy consistent with the private character of the dispute. Ratio: Where the dispute is private and settlement is feasible, the Court may appropriately refer parties to mediation and fix mediator fees; such referral does not preclude parties from pursuing legal remedies if mediation fails. Conclusion: The matter was referred to mediation; a mediator was appointed and the mediator's fee fixed at a specified sum to be equally borne by the petitioner and the petitioner's authorised representative; parties may pursue remedies if mediation is unsuccessful. OVERALL CONCLUSION The Court dismissed the writ petition as not maintainable because the material fact of release of the goods to the petitioner's authorised representative was not pleaded, rendering the dispute essentially a private disagreement between client and advocate rather than a subsisting public-law grievance; the Court referred the parties to mediation, appointed a mediator, fixed mediator's fees to be shared equally, and left parties free to pursue other remedies if mediation does not succeed.