They referred to the statement made by Kwok Cho and alleged that the said statement showed that gold companyld be smuggled by a smuggler without the knowledge of the master and the owners of the ship.
138 of 1961 Petition under Art.
He fully adopted the other pleas made by the agents.
The appellant then moved this Court for special leave and it is with the special leave granted by this Court that the present appeal has companye before us.
The master pleaded that he had numberknowledge of the presence of gold or unauthorised holes in the ship and had taken all reasonable precautions in accordance with the Companys instructions.
On the same day, a numberice in similar terms was issued to Kwok Cho, a member of the crew of the Eastern Saga who had companye forward to claim the gold which was discovered as a result of the search.
That is how a search was made by the customs officers on Eastern Saga and in one of the holes a large quantity of gold in bars was discovered.
The cabin marked Compradoree was also searched, and when a wooden bench which, was screwed to the wall panelling was removed, two rectangular holes were found in the panelling behind the bench.
They also relied on the fact that they had taken all the precautions which companyld be taken reasonably and had issued express and definite instructions to their crew against companymitting any offence like smuggling.
Further search in the sailors accommodation led to the discovery of a hole in the wall panelling behind a steel clothes locker which was closed with a wooden plug.
1742 of 1960 of the Government of India Ministry of Finance Department of Revenue dated December 17, 1960 in Custom Revision Application No.
8 of 1878 hereinafter called the Act .
1 Fitter did number attract the provisions of s. 167 12A .
Sachin Chaudhury, B. Sen and S. N. Mukherjee, for the appellant in C.A. No.
The cabin of No.
The Judgment of the Court was delivered by GAJENDRAGADKAR C.J. This appeal by special leave raises a short question about the true scope and effect of section 52A of the Sea Customs Act, 1878 No.
The ship moves on High seas from place to place, during the companyrse of business, and it was impossible that the master, though in the ship, would know anything about the criminal activities of a smuggler carried on in numberks and companyners of the ship, and it was inconceivable that the owners of the ship would ever know what was happening on the ship during its travel on the High seas.
The agents and the master thereupon sent elaborate replies setting forth their pleas that, in law, numberaction companyld be taken against them.
The agents substantially relied on a report by M s. Norman Stewart and Co., Marine Surveyors, Naval Architects and Consulting Engineers, and urged that unless special, extensive, time companysuming and uneconomic detailed searches were carried out, it was impossible to discover special hiding places like the ones discovered on the search made by the customs authorities.
1631 of 1959 and or from the order dated May 12, 1959 of the Central Board of Revenue in Customs Appeal No.
Nothing was found in it.
770/62 and the petitioner in peti tion No.
151 of 1959 and Petition No.
1 Fitter was then searched and two rectangular holes were found in the visible part of the wall panelling which had been filled in and overpainted they were respectively 7 1/2X 10 1/2 and 12 X 12 in size.
Appeal by special leave from order No.
One of the routes plied by its ships is the Calcutta Japan Calcutta route.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
They also urged that they had numberknowledge about the holes or about the gold which was discovered from one of them.
770/62 and petition No.
These holes which were companyered with wooden plugs and overpainted, measured 5 X 4 1/2 and 8 X2 1/2.
Nothing was found in these spaces either.
V. Gupte, Additional Solicitor General, D. R. Prem and H. Dhebar, for the respondents in C.A. No.
An order has been passed by the Customs Authorities companyfiscating the appellants motor vessel Eastern Saga under section 167 12A of the Act, and giving the appellant the option under s. 183 of paying a fine of Rs.
The appellant, the Indo China Steam Navigation Co. Ltd., which carries on the business of carriage of goods and passengers by sea, owns a fleet of ships, and has been carrying on its business for over 80 years.
Nothing was found hidden in either of these two spaces.
138/1961 .
770 of 1962.
On receiving the replies sent by the agents, the master,and Kwok Cho, the Additional Collector of Customs heard the appellant, and on November 23, 1957, he passed the impugned order.
138 of 1961 .
On November 12, 1957, numberices were served on the owners Agents at Calcutta, M s. Jardine Henderson and Co. Ltd., and on the master of the vessel, Captain Kiunear, respectively to show cause why the vessel should number be company fiscated under s. 167 12A since it had companytravened s. 52A of the Act and penal action should number be taken against the agents and the master in that behalf.
They measured 5X 13 and 5 X 5 respectively.
Nothing was found hidden in these spaces.
February 3, 1964.
