Case Note & Summary
The petitioner, an informer of the Customs Department, filed a writ petition seeking a mandamus directing the respondents to release the balance amount of reward due and payable to him. The petitioner contended that he provided specific information to the Commissioner of Customs in July 2010 about goods which enabled the Department to collect huge revenue. The petitioner argued that the respondents are duty bound to act on the scheme/policy framed for rewarding informers, and that by not disbursing the balance amount, they have abused their powers. The court examined the Customs Informers' Reward Scheme, 2005, and found that the petitioner had a legitimate expectation of receiving the reward. The court held that the Department cannot arbitrarily withhold the payment and directed the respondents to pay the balance reward amount to the petitioner within a specified period. The judgment emphasizes that government policies must be followed and that informers who risk their safety are entitled to the promised rewards.
Headnote
A) Customs Law - Informers' Reward - Customs Informers' Reward Scheme, 2005 - Right to Reward - Petitioner, an informer, provided information leading to revenue collection - Court held that the Department is bound by its own policy and must pay the balance reward as per the scheme - Held that the petitioner has a legitimate expectation and the Department cannot arbitrarily withhold payment (Paras 1-10).
Issue of Consideration
Whether the Customs Department is bound to pay the balance reward amount to an informer under the Customs Informers' Reward Scheme, 2005, and whether the petitioner has a right to seek mandamus for such payment.
Final Decision
The court allowed the writ petition and directed the respondents to release the balance amount of reward due and payable to the petitioner within a specified period.
Law Points
- Customs Informers' Reward Scheme
- 2005
- Right to reward for informers
- Mandamus for payment of reward
- Legitimate expectation
- Policy binding on government
Case Details
2015 LawText (BOM) (04) 28
WRIT PETITION NO.1882 OF 2014
Mr. Brijesh Pathak for the Petitioner, Mr. S.P. Bharti for Respondent Nos.1 to 5
Union of India, The Chief Commissioner of Customs, The Directorate General Directorate of Revenue Intelligence, Addl. Director General (Vigilance), The Commissioner of Customs (I), Rakesh Kumar Gaur, Narayan Singh
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Nature of Litigation
Writ petition seeking mandamus for payment of reward under Customs Informers' Reward Scheme
Remedy Sought
Petitioner seeks direction to respondents to release balance reward amount and declaration that non-payment is illegal
Filing Reason
Respondents failed to pay the balance reward amount to the petitioner despite his providing information that led to revenue collection
Issues
Whether the petitioner is entitled to the balance reward amount under the Customs Informers' Reward Scheme, 2005
Whether the respondents can arbitrarily withhold the reward payment
Submissions/Arguments
Petitioner argued that he provided information in July 2010 enabling revenue collection and is entitled to reward under the scheme
Petitioner contended that respondents are duty bound to act on the policy and non-payment is abuse of power
Ratio Decidendi
The Customs Department is bound by its own policy under the Customs Informers' Reward Scheme, 2005, and cannot arbitrarily withhold the reward amount from an informer who provided information leading to revenue collection. The informer has a legitimate expectation of receiving the reward.
Judgment Excerpts
The Petitioner, an informer of the Customs Department has filed the present Petition for a writ of Mandamus... directing the Respondents... to forthwith release the balance amount of reward due and payable to the Petitioner.
It is contended by the Petitioner that when a person acts as an informer, he risks his security and safety, which ultimately enables the Respondent Department to garner revenue because of the disclosure of the illegal activities which are being committed by the importers.
Acts & Sections
