Custom House Agent licence suspension under Regulation 21(2) failed where no enquiry was held and immediacy was absent.

The exceptional suspension power under Regulation 21(2) of the Custom House Licensing Regulations, 1984 was confined to cases requiring immediate action, and could not be used where the alleged violations were old and two show cause notices were already pending. The regulatory scheme also contemplated an enquiry before action against the Custom House Agent. As no such enquiry had been conducted, the suspension was not legally sustainable and the order was vitiated in law.

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Issues: Whether the Commissioner was justified in suspending the Custom House Agent licence by invoking Regulation 21(2) of the Custom House Licensing Regulations, 1984 without holding the enquiry contemplated by the regulations.

Analysis: Regulation 21(2) confers an exceptional power meant for cases requiring immediate action. Where the alleged violations had occurred long earlier and two show cause notices were already pending adjudication, the requirement of immediacy could not be ignored. The regulatory scheme also contemplated enquiry before action against the Custom House Agent. As no such enquiry had been undertaken, the invocation of the suspension power was not legally sustainable.

Conclusion: The suspension order was wrongly made under Regulation 21(2) and was vitiated in law.

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