Case Note & Summary
The High Court of Bombay allowed a criminal writ petition challenging the denial of bail to petitioners accused under the Customs Act, 1962. The petitioners, employees of a shipping company, were arrested after diesel and cash were found on their vessel. The Magistrate held the offences non-bailable under Section 135(1)(i) of the Customs Act. The High Court found the arrest illegal due to lack of 'reason to believe' under Section 104(1), with arrest memos showing omnibus references. It also ruled the offences bailable under Section 104(7), as the seized goods' value did not exceed Rs. 1 Crore and no relevant notification was issued. The Court quashed the bail denial, directing release on bail with conditions, emphasizing procedural fairness and personal liberty.
Headnote
The High Court of Judicature at Bombay, in Criminal Writ Petition No. 338 of 2026, addressed the legality of arrest and bail denial under the Customs Act, 1962 -- The petitioners, employees of Shiny Shipping and Logistics Pvt. Ltd., were arrested on 20 January 2026 after interception of M.V. Tina4, where approximately 120 KL of diesel and cash were seized -- The Additional Chief Judicial Magistrate, Mumbai, declined bail, holding offences under Section 135(1)(i) of the Customs Act as non-bailable -- The High Court, per N.J. Jamadar, J., examined the arrest under Section 104(1) of the Customs Act and the classification under Section 104(6) and (7) -- The Court held that the arrest lacked 'reason to believe' as required, with omnibus references in arrest memos indicating non-application of mind -- Further, the Court found the offences bailable under Section 104(7) of the Customs Act, as the value of seized goods did not exceed Rs. 1 Crore and no notification under Section 135(1)(i)(c) was issued -- The bail denial was quashed, and petitioners were directed to be released on bail with conditions -- Paragraphs 1, 5, 9, 10, 12
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Issue of Consideration: The Issue of whether the arrest of the petitioners under the Customs Act was legal and whether the offences were bailable or non-bailable for bail purposes
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Final Decision
The High Court allowed the writ petition, quashed the Magistrate's order denying bail, held the arrest illegal due to lack of 'reason to believe', classified the offences as bailable under Section 104(7) of the Customs Act, and directed the petitioners to be released on bail with conditions such as furnishing a personal bond and surety, and cooperating with the investigation
