Pre-deposit modification on instalments where detention order affected operations, though financial hardship was not proved.

Pre-deposit directions were modified in light of a detention order that prevented clearance of goods, but the plea of financial hardship was not substantiated because the claimed rehabilitation scheme was not produced. The authority accepted that the detention order had affected operations and therefore allowed payment by instalments. The appellants were permitted to pay Rs. 5,00,000 each month, with the first instalment due on 7-5-1997, and the detention order was to cease once that first instalment was paid.

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Issues: Whether the earlier pre-deposit direction should be modified and the amount permitted to be paid in instalments in view of the detention order and the plea of financial hardship.

Analysis: The application for modification was examined on the basis of the appellants' asserted rehabilitation position and alleged inability to operate the factory because of the detention order. The record did not establish the claimed financial hardship, and the rehabilitation scheme was not produced. At the same time, the operative detention order was taken into account, as the appellants were not able to clear goods.

Conclusion: The pre-deposit direction was modified and the appellants were permitted to pay Rs. 5,00,000 each month, with the first instalment due on 7-5-1997 and the detention order to cease on payment of the first instalment.

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