Preventive suspension of customs house agent licence upheld where immediate action was justified and reasons were recorded.

Regulation 21(2) of the Customs House Agent Licensing Regulations, 1984 permits suspension only in exceptional cases where immediate preventive action is needed, unlike the normal notice-and-hearing procedure under Regulation 23. The power is prospective and aimed at preventing continuing misconduct, not punishing past conduct. A delay between the alleged misconduct and the suspension order does not by itself invalidate the action if the Commissioner applies his mind and records reasons for urgent intervention. Appellate interference is limited unless the discretion was exercised without proper consideration or disclosure of reasons. On that basis, suspension of the licence was upheld and restoration was ?

---

---

Issues: Whether the suspension of the Customs House Agent's licence under Regulation 21(2) of the Customs House Agent Licensing Regulations, 1984 was justified in the facts of the case.

Analysis: Regulation 21(2) permits suspension in appropriate cases where immediate action is necessary, and is exceptional in nature as compared with the normal procedure under Regulation 23, which requires notice and opportunity of hearing. The power is preventive and operates prospectively, not as a penal measure for past conduct. The existence of some delay between the alleged misconduct and the suspension order does not by itself make the action invalid if the Commissioner forms an informed view that the licence-holder's modus operandi may continue and that immediate intervention is needed. Interference in appeal is not warranted unless the discretion is shown to have been exercised without application of mind or without disclosure of reasons for immediate action.

Conclusion: The suspension was held valid and the request for restoration of the licence was rejected.

---