Bageshwar Kumar vs Commissioner of Customs, Patna

Mihir Kumar Jha, J. (Oral)—Heard learned counsel for the parties as with regard to the following relief prayed in this writ application :-

quashing the re-auction dated 8-12-2014 elating to Lot No. 26 and 29 of MSTC/WRO/Customs (Hqrs), Patna/8/Central; Revenue Building 14-

15/11033 (88326) of which petitioner is the successful bidder vide auction No. 6/CRB/14-15/8381, dated 17-10-2014 of Lot No. 22 and 25.

Learned counsel for the petitioner while pressing for the aforementioned relief has basically concentrated on the aspect that while the petitioner

was being saddled with consequence of forfeiting part of its security amount on account of not lifting the auction lot within the prescribed period

even when the similar facilities in past were given to many of the auction purchasers by the Customs Department.

Mrs. Nivedita Nirvikar, learned counsel appearing on behalf of Customs Department has however sought to justify the action of the Customs

Department by relying on the terms and conditions of the auction notice and the consequential sale order.

In the considered opinion of this Court the authorities of the Customs Department must maintain a uniform yardstick. Actually, here the

petitioner has been saddled, with an adverse consequence of forfeiture of Rs. 2,65,000/- only because he could not deposit the auction amount

within a period of 15 days but in the similar cases in past, about which full details has been given by the petitioner in the supplementary affidavit,

they were allowed to lift the auctioned lot even after expiry of the period fixed for depositing the full amount of auction. In fact, Mrs. Nirvikar, is

also not having clear answer to such acts done in past but then she submits that right of equality cannot be enforced in negative manner and if some

illegality was committed in past that cannot be allowed to be perpetuated forever.

This Court, having heard the matter also had adjourned this case for being acquainted with the result of the auction of the said lot which was

earlier settled in favour of the petitioner. Today, this Court has been informed that the highest offer received by the Customs Department in the re-

auction is Rs. 9,22,000/- whereas the offer of the petitioner earlier was Rs. 10,42,420/-. Obviously, on account of re-auction the Customs

Department is also a looser. True it is that the interest of revenue cannot be bigger than the principle of observance of the rules but then in

commercial law even the Government is supposed to take the interest of revenue into prime consideration.

Based on these analysis as well as past practise of allowing the auction purchasers to lift the lot even after expiry of time on realization of certain

penal charges as specified in the purchase order, this Court in order to meet the ends of justice will direct that the auction lot should be released in

favour of the petitioner by acceding to his earlier offer of Rs. 10,42,420/- and 50 per cent of the forfeited amount of Rs. 2,65,000/-. In other

words, the petitioner will be entitled to lift the entire lot on complete payment of Rs. 11,74,920/-. In this way the petitioner gets the auction lot and

the Customs Department would get the additional sum of Rs. 2,52,920/-.

With the aforementioned observation and direction, this application is disposed of.