Bombay High Court Allows Compounding Application in Customs Act Offense Despite Pending Criminal Prosecution. Petitioner's Fundamental Rights Protected by Directing Expeditious Consideration of Compounding Application Under Section 137(3) of Customs Act, 1962.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
  • 114
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Imran Latif Shirgawkar, was arrested by the Directorate of Revenue Intelligence under Section 104 of the Customs Act, 1962, on allegations of committing an offence punishable under Section 135(1)(i) of the said Act. He was in judicial custody pursuant to Remand Application No.161 of 2019 before the Additional Chief Metropolitan Magistrate, 8th Court, Mumbai. The offence under Section 135(1)(i) is compoundable under Section 137(3) of the Customs Act. While in custody, but before the filing of criminal prosecution, the petitioner preferred an application for compounding of the alleged offence before the compounding authority. He then filed the present writ petition under Article 226 of the Constitution of India seeking to safeguard his fundamental rights, including a direction to the compounding authority to consider his compounding application expeditiously. The court noted that there was no dispute that the offence was compoundable. The court held that the right to apply for compounding is a fundamental right and the compounding authority must consider the application expeditiously. The court directed the authority to decide the compounding application within four weeks from the date of the order, and until then, the petitioner's custody would continue as per law. The petition was disposed of accordingly.

Headnote

A) Customs Law - Compounding of Offence - Section 137(3) read with Section 135(1)(i) of Customs Act, 1962 - Right to Apply - The petitioner, arrested under Section 104 of the Customs Act for an offence under Section 135(1)(i), applied for compounding under Section 137(3) before criminal prosecution was filed. The court held that the right to apply for compounding is a fundamental right and the compounding authority must consider the application expeditiously, even if the applicant is in custody. The court directed the authority to decide the application within four weeks. (Paras 1-3)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether a person in judicial custody can apply for compounding of an offence under the Customs Act, 1962 before the filing of criminal prosecution, and whether the compounding authority is obliged to consider such application expeditiously.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The court directed the compounding authority to decide the petitioner's compounding application under Section 137(3) of the Customs Act, 1962, within four weeks from the date of the order. The petition was disposed of accordingly.

Law Points

  • Compounding of offence under Customs Act
  • 1962
  • can be applied for before filing of criminal prosecution
  • Right to apply for compounding is a fundamental right
  • Compounding authority must consider application expeditiously
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (BOM) (09) 39

Writ Petition No. 4779 of 2019

2019-09-27

Ranjit More, N. J. Jamadar

Dr. Sujay Kantawala i/b Mr. Siddiqui Mohammed Arif for Petitioner, Ms. Rebecca Gonsavlez for Respondent No. 1, Ms. P. H. Kantharia for Respondent No. 2 and 3

Imran Latif Shirgawkar

Directorate of Revenue Intelligence, Union of India, Chief Commissioner of Customs (Mumbai Zone-III), State of Maharashtra

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition under Article 226 of Constitution of India seeking direction to compounding authority to consider compounding application under Customs Act, 1962.

Remedy Sought

Direction to the compounding authority to consider the petitioner's compounding application expeditiously and to safeguard his fundamental rights.

Filing Reason

Petitioner was arrested under Section 104 of Customs Act for offence under Section 135(1)(i) and applied for compounding before filing of criminal prosecution; sought expeditious consideration.

Previous Decisions

Petitioner was in judicial custody pursuant to Remand Application No.161 of 2019 of Additional Chief Metropolitan Magistrate, 8th Court, Mumbai.

Issues

Whether the petitioner, while in judicial custody, can apply for compounding of an offence under the Customs Act before filing of criminal prosecution? Whether the compounding authority is obliged to consider such application expeditiously?

Submissions/Arguments

Petitioner argued that the offence is compoundable and he has a fundamental right to apply for compounding, which should be considered expeditiously. Respondents did not dispute the compoundability but argued on procedural aspects.

Ratio Decidendi

The right to apply for compounding of a compoundable offence under the Customs Act is a fundamental right, and the compounding authority must consider such application expeditiously even if the applicant is in custody and before criminal prosecution is filed.

Judgment Excerpts

There is no dispute on the fact that the said offence is 'compoundable'. While in custody, but before filing criminal prosecution in the said case, the Petitioner has preferred an application for compounding of the alleged offence before the compounding authority under section 137(3) of the Customs Act, 1962.

Procedural History

Petitioner was arrested under Section 104 of Customs Act, 1962, and remanded to judicial custody. Before criminal prosecution was filed, he applied for compounding under Section 137(3). He then filed the present writ petition seeking expeditious consideration of the compounding application.

Acts & Sections

  • Customs Act, 1962: 104, 135(1)(i), 137(3)
  • Constitution of India: 226
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Dismisses Petitions Challenging Transfer of Employees from Municipal Corporation to State Government. Transfer of employees under Section 451 of Mumbai Municipal Corporation Act, 1888 held valid as in public interest and for better ...
Related Judgement
High Court Bombay High Court Quashes CEGAT Order for Non-Consideration of Submissions in Customs Seizure Case. Tribunal's Order Held Invalid as It Did Not Constitute a Decision in the Eye of Law Under Customs Act, 1962.