REPORTABLE

IN THE SUPREME COURT OF INDIA   CIVIL APPELLATE JURISDICTION

     CIVIL APPEAL NOS.6457-6458 OF 2008         (Arising out of S.L.P.(C) Nos.25591-25592/2008  

Union of India and Ors. Etc.Etc. ...Appellants

Versus

M/s. Kundan Rice Mills Ltd. ...Respondent

J U D G M E N T

Dr. ARIJIT PASAYAT, J.

Heard.

Though these matters were listed for admission, learned counsel for

the parties requested the matters to be taken up for final disposal.   

Leave granted.

We find that while adjudicating an interim matter, the High Court

has given a categorical finding on merits holding inter-alia that there is nothing to

show that even prima facie,  goods  are liable to  confiscation.  The High Court

appears to  have  decided  the  matter  on

-2-

merits finally even though that was not the stage for doing so and was beyond the

scope of adjudication of the writ petition.  This is not the way the High Court

should have dealt with the matter.  Apart from that,  the High Court has not

indicated any reason as to  why the condition of  execution of  indemnity bond

equivalent to seizure value of goods and/or furnishing of bank guarantee equal to

10%  of value of goods,  as was stipulated by the authorities, was not justified.

This also adds to the vulnerability of the order. We set aside the impugned orders

of  the  High Court.   Let  the  High Court  hear the  matters  afresh.  To  avoid

unnecessary delay, let the parties appear before the High Court, without further

notice, on 17.11.2008.

The Hon'ble Chief Justice of the High Court is requested to allot the

matters,  i.e.  CWP No.13914/2008 and COCP  No.1536/2008 to an appropriate

Bench.

The appeals are disposed of accordingly.       

                                    .....................J.   (Dr. ARIJIT PASAYAT)              

               .....................J.              (Dr. MUKUNDAKAM SHARMA)  

New Delhi, November 03, 2008.