{"id":185417,"date":"2003-08-13T00:00:00","date_gmt":"2003-08-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-r-padmanabhan-on-13-august-2003"},"modified":"2016-08-26T19:43:30","modified_gmt":"2016-08-26T14:13:30","slug":"union-of-india-vs-r-padmanabhan-on-13-august-2003","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-r-padmanabhan-on-13-august-2003","title":{"rendered":"Union Of India vs R. Padmanabhan on 13 August, 2003"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Union Of India vs R. Padmanabhan on 13 August, 2003<\/div>\n<div class=\"doc_author\">Author: R Babu<\/div>\n<div class=\"doc_bench\">Bench: S. Rajendra Babu, Doraiswamy Raju.<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  2769 of 1999\n\nPETITIONER:\nUnion of India\t\t\t\t                               \n\n\nRESPONDENT:\nVs.\n\nR. Padmanabhan\t\t                                               \n\n\nDATE OF JUDGMENT: 13\/08\/2003\n\nBENCH:\nS. RAJENDRA BABU &amp; DORAISWAMY RAJU.\n\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<\/p>\n<p>RAJENDRA BABU, J.:\n<\/p>\n<p>\tThe appellant, Union of India, which lost before the learned Single <\/p>\n<p>Judge in O.P. No.12775 of 1991 and before the Division Bench of the Kerala <\/p>\n<p>High Court in W.A. No.1077 of 1994, has filed this appeal.<\/p>\n<p>\tThe respondent, an IPS Officer, who, at the relevant point of time, was <\/p>\n<p>serving as the DIG of Police, Northern Range, Kozhikode, which comprised in <\/p>\n<p>his area of operation Revenue Districts of Kasargode, Cannanore, Kozhikode, <\/p>\n<p>Palakkad, Wayanad and Malappuram.  The appellant-Government not only <\/p>\n<p>authorized the State Police authorities to effect seizure and investigation of <\/p>\n<p>cases under the Central Excise &amp; Salt Act, Customs Act, Gold Control Order <\/p>\n<p>and Foreign Exchange Regulation Act, to prevent smuggling of gold and other <\/p>\n<p>articles through the coastal areas of Kerala, as well as in other parts of the <\/p>\n<p>country but with a view to create an incentive generally in the matter of <\/p>\n<p>detection of such violations, proposed to grant awards to those responsible to <\/p>\n<p>assist the Government in the same by being informants as well as <\/p>\n<p>Government servants and issued Guidelines therefor in the Notification dated <\/p>\n<p>30.3.1985; this was said to have been followed by certain amendments in the <\/p>\n<p>matter of ceiling imposed, as to the quantum, by Notification dated 13.4.1989.  <\/p>\n<p>The respondent, claimed to have an informant in the matter in question, <\/p>\n<p>worked out the information, supervised and executed an operation, which <\/p>\n<p>resulted in the seizure of 900 gold biscuits valued approximately at Rs.3.5 <\/p>\n<p>crores, which were concealed in an House.  He also was said to have <\/p>\n<p>monitored the operation after seizure and on the basis of the action taken by <\/p>\n<p>the authorities of the Customs Department thereon it was possible for the said <\/p>\n<p>authorities to seize another 1600 gold biscuits from Irikkur in Cannanore <\/p>\n<p>District.  A reward of Rs.11.28 lakhs was said to have been sanctioned to 163 <\/p>\n<p>Officers of Customs as well as Police Department.<\/p>\n<p>\tWhile so, though the claim of the respondent was also considered as <\/p>\n<p>one responsible for the subject seizure, no sanction was made in his favour <\/p>\n<p>for the reason that he was holding a rank considered higher than that of <\/p>\n<p>Assistant Collector\/Assistant Director and consequently held not eligible for <\/p>\n<p>the reward in terms of clause 7.1. of the Notification dated 30.3.1985.   After <\/p>\n<p>finding not successful in his representation to the higher authorities, as well in <\/p>\n<p>the Government of India, O.P. No.12775 of 1991 was filed in the High Court, <\/p>\n<p>under Article 226 of the Constitution of India, to quash the proceedings <\/p>\n<p>rejecting his claim and consequently direct the appellant to sanction and pay <\/p>\n<p>the reward to the respondent herein, in accordance with the scales mentioned <\/p>\n<p>and declare that he was entitled to the reward on the basis of the Guidelines <\/p>\n<p>indicated.  Overruling the objections of the appellant arrayed as respondent <\/p>\n<p>before the High Court, the learned Single Judge, by his Order dated <\/p>\n<p>19.7.1994, directed the Department to consider the claims of the respondent <\/p>\n<p>herein on merits and fix the quantum of reward taking into account the role <\/p>\n<p>played in the operations.  The learned Judge was of the view that the <\/p>\n<p>exclusionary rule in clause 7.2. of the Guidelines was intended to exclude, if <\/p>\n<p>at all, only the officers above the level mentioned in the Departments <\/p>\n<p>specified, from being rewarded on the basis of the value of the seizure and <\/p>\n<p>not others.  As for the amendment issued in April 1989, limiting the total <\/p>\n<p>reward to Rs.1 lakh per seizure and a total limit of Rs.10 lakhs in ones career, <\/p>\n<p>the High Court was of the view that the seizure in the case having been made <\/p>\n<p>on 24.12.1989, cannot have retrospective effect and, therefore, not relevant.       <\/p>\n<p>\tAggrieved, the appellant pursued the matter on appeal in W.A. <\/p>\n<p>No.1077 of 1994 and the Division Bench also confirmed the order of the <\/p>\n<p>learned Single Judge and directed the appellant to grant the reward to the <\/p>\n<p>respondent after fixing the quantum in accordance with Ex.P.1 within two <\/p>\n<p>months from the date of receipt of the copy of the order and that on failing to <\/p>\n<p>do so or paying the same within a month from the date of its order, the <\/p>\n<p>amount shall carry interest at 15% from the date of its due till payment.  <\/p>\n<p>Hence, this appeal.\n<\/p>\n<p>\tThe learned Additional Solicitor General appearing for the appellant <\/p>\n<p>contended that being a pure ex gratia payment, it should be strictly in <\/p>\n<p>accordance with the stipulations contained in the order itself and if the <\/p>\n<p>claimant, in any case, does not satisfy the stipulations therein, the <\/p>\n<p>Department not only can, in appropriate cases, consider such claims for any <\/p>\n<p>lump sum reward but not at the rates specified to the eligible class or <\/p>\n<p>category of claimants, on the basis of the value of seized goods.  It was also <\/p>\n<p>urged that departmental officers of other departments such as Police, B.S.F. <\/p>\n<p>and Coast Guards etc. are envisaged under the Guidelines for being granted <\/p>\n<p>such rewards subject to the restrictions in Clause 7-1 and the directions <\/p>\n<p>issued to the contrary cannot be justified in law and being a matter pertaining <\/p>\n<p>to the sphere of policy, it cannot be modulated, modified or restructured so as <\/p>\n<p>to affect the very basis of the orders of the Government.  The provisions <\/p>\n<p>contained in the amendment made on 13.4.89 was also urged to apply to the <\/p>\n<p>case.  The learned Senior Counsel for the respondent, while adopting the <\/p>\n<p>reasoning of the High Court, reiterated that the construction placed by the <\/p>\n<p>High Court and the reasons assigned therefor are not only reasonable but <\/p>\n<p>constitute just and reasonable method of implementation keeping into <\/p>\n<p>account the avowed purpose and object underlying the very Scheme and <\/p>\n<p>consequently, no interference is called for. <\/p>\n<p>\tWe have carefully considered the submissions of the learned counsel <\/p>\n<p>appearing on either side.  It is not only useful but necessary to advert to the <\/p>\n<p>relevant portions of the Notification dated 30.3.1985 laying down the <\/p>\n<p>Guidelines for the reward, since the High Court, learned Single Judge and the <\/p>\n<p>Division Bench, seem to have dealt with the claims of parties purely on the <\/p>\n<p>basis of clause 7 without noticing the other relevant and essential provisions, <\/p>\n<p>apparently and may be on account of the fact that their attention was not <\/p>\n<p>properly drawn by the appellant-Government, at that point of time.  The <\/p>\n<p>relevant portions of the Guidelines, necessary for appreciating the <\/p>\n<p>contentions on either side, are as hereunder:-<\/p>\n<p>&#8220;The Government have reviewed the existing policy, <\/p>\n<p>procedure and orders in respect of grant of rewards to <\/p>\n<p>informers and Government servants in case of seizures <\/p>\n<p>made, infringement or evasion on duty, etc., detected <\/p>\n<p>under the provisions of the following Acts:-<\/p>\n<p>i)\t           The Customs Act, 1962<\/p>\n<p>ii)\tThe Central Excise &amp; Salt Act, 1944<\/p>\n<p>iii)\tThe Gold Control Act, 1968<\/p>\n<p>iv)\tThe Foreign Exchange Regulation Act, 1973<\/p>\n<p>2.\tAs a result, the revised guidelines are laid down in <\/p>\n<p>the succeeding paras,  All provisions\/guidelines <\/p>\n<p>issued on the subject may be deemed to be <\/p>\n<p>modified to the extent indicated therein.\n<\/p>\n<p>1.1\tQUANTUM OF REWARDS<\/p>\n<p>Seizures of contraband under the Customs Act<\/p>\n<p>3.1.1\t Informers and government servants will be <\/p>\n<p>eligible for rewards upto 20% of the estimated <\/p>\n<p>market value of the contraband goods seized.  In <\/p>\n<p>respect of gold silver, opium and other narcotic <\/p>\n<p>drugs etc., the overall ceilings for rewards <\/p>\n<p>(based on broadly 20% of the value of these <\/p>\n<p>items, as reckoned by the Government for the <\/p>\n<p>present) are shown in the Annex.  These would <\/p>\n<p>be subject to periodically revision in the light of <\/p>\n<p>price fluctuations about which timely intimations <\/p>\n<p>should be sent to DGRI every quarter to enable <\/p>\n<p>him to recommend appropriate revision as and <\/p>\n<p>when warranted, to the Ministry.\n<\/p>\n<p>3.2\t\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026<\/p>\n<p>3.2.1\t Informers and Government servants will be <\/p>\n<p>eligible for reward upto 20% of the duty, if any, <\/p>\n<p>sought to be evaded plus 20% of the fine and <\/p>\n<p>penalty levied\/imposed and realized, provided <\/p>\n<p>the amount does not exceed 20% of the market <\/p>\n<p>value of the goods involved.\n<\/p>\n<p>3.3.\tSeizures made, evasion of duty and other                                                     <\/p>\n<p>infringement detected under the Central Excise &amp; Salt <\/p>\n<p>Act.\n<\/p>\n<p>3.3.1\t  \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026<\/p>\n<p>3.4\tSeizures under the Gold Control Act and cases of <\/p>\n<p>other violations detected under the Gold Control <\/p>\n<p>Act.\n<\/p>\n<p>3.4.1\tIn case of seizures of gold bullion, the over <\/p>\n<p>all ceiling for rewards to informers and Government <\/p>\n<p>servants will be as indicated in serial No.1 of the <\/p>\n<p>Annex.\n<\/p>\n<p>3.4.2\tIn other cases, whether of seizure of <\/p>\n<p>articles of gold\/ornaments, or of detection of  <\/p>\n<p>&#8220;shortages&#8221;, informers and Government servants will <\/p>\n<p>be eligible for reward upto 20% of the redemption <\/p>\n<p>fined and\/or penalty imposed and realized, provided <\/p>\n<p>the amount does not exceed 20% of the market price <\/p>\n<p>of the goods involved.\n<\/p>\n<p>3.5\t Cases of seizures\/violations detected under FERA<\/p>\n<p>3.5.1\t..\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026<\/p>\n<p>4.\tREWARD SHOULD NOT BE GRANTED AS A <\/p>\n<p>MATTER OF ROUTINE.\n<\/p>\n<p>4.1\t Reward is purely an ex-gratia payment which, <\/p>\n<p>subject to guidelines may be granted on the <\/p>\n<p>absolute discretion of the authority competent to <\/p>\n<p>grant rewards and cannot be claimed by anyone <\/p>\n<p>as a matter of right.  In determining the rewards <\/p>\n<p>which may be granted, the authority competent to <\/p>\n<p>grant reward will keep specificity and accuracy of <\/p>\n<p>the information, the risk and trouble undertaken, <\/p>\n<p>the extent and nature of the help rendered by the <\/p>\n<p>informer, whether information gives clues to <\/p>\n<p>persons involved in smuggling, or their <\/p>\n<p>association, etc; the risk involved for the <\/p>\n<p>Government servants in working out the case, the <\/p>\n<p>difficulty in accruing the information, the extent to <\/p>\n<p>which the vigilance on the staff led to the seizures, <\/p>\n<p>special initiative, efforts and ingenuity displayed, <\/p>\n<p>etc. and whether, besides the seizure of <\/p>\n<p>contraband goods, the owners\/organizers\/ <\/p>\n<p>financiers\/racketeers as well as the carriers have <\/p>\n<p>been apprehended or not.\n<\/p>\n<p>4.2\tTo Government servants, rewards may ordinarily <\/p>\n<p>be paid upto 10% of the estimated market value of <\/p>\n<p>the goods involved (half of the maximum rewards <\/p>\n<p>indicated in respect of gold, opium and other <\/p>\n<p>narcotic drugs, etc. in the Annex.).  Rewards in <\/p>\n<p>excess of this limit, but not exceeding 20% (or as <\/p>\n<p>in Annex., in respect of gold, silver, narcotics, etc.) <\/p>\n<p>of the said value, maybe considered in cases <\/p>\n<p>where the Government servant has exposed <\/p>\n<p>himself to a great personal hazard or displayed <\/p>\n<p>exemplary courage, commendable initiative, <\/p>\n<p>ingenuity or his personal efforts have been mainly <\/p>\n<p>responsible for the detection of the goods.<\/p>\n<p>5.\tSTAGE OF PAYMENT OF REWARD<\/p>\n<p>Payment of advance rewards  <\/p>\n<p>5.1\tAdvance reward may be paid to informers and <\/p>\n<p>Government servants upto 50% of the expected final <\/p>\n<p>reward immediately on seizure in respect of the <\/p>\n<p>following categories of goods, namely:-\n<\/p>\n<\/p>\n<p>a)\tgold\/silver bullion and goods which are <\/p>\n<p>notified or specified under the Customs <\/p>\n<p>Act, 1962;\n<\/p>\n<\/p>\n<p>b)\tarms and ammunition, explosives;\n<\/p>\n<p>c)\topium and other narcotic drugs;\n<\/p>\n<p>d)\tgoods not declared which are seized in <\/p>\n<p>the Customs area or Customs waters;\n<\/p>\n<p>and<\/p>\n<p>e)\t freely convertible foreign exchange in the <\/p>\n<p>form of currency notes.\n<\/p>\n<p>5.2\tIn other (&#8220;Smuggling&#8221;) cases of seizures of <\/p>\n<p>contraband goods, advance reward upto 25% of the <\/p>\n<p>expected final reward may be paid immediately after <\/p>\n<p>seizure, if the authority competent to sanction <\/p>\n<p>reward is satisfied that the goods seized are <\/p>\n<p>reasonably expected to be confiscated on <\/p>\n<p>adjudication and the order is likely to be sustained in <\/p>\n<p>appeal\/revision proceedings.\n<\/p>\n<p>5.3\tIn all other cases, whether of seizure of <\/p>\n<p>evasion\/infringement detected on the basis of <\/p>\n<p>documents, 25% of the expected final reward may <\/p>\n<p>be paid after the issue of a show cause notice <\/p>\n<p>provided the authority competent to sanction reward <\/p>\n<p>is satisfied that there is reasonable chance of <\/p>\n<p>confiscability\/infringement\/evasion, as the case may <\/p>\n<p>be, being established in adjudication and sustained <\/p>\n<p>in appeal\/revisionary proceedings.\n<\/p>\n<p>5.4\tIn exceptional cases, the Heads of <\/p>\n<p>Departments may, having regard to the value of the <\/p>\n<p>seizures effected and magnitude of the evasion or <\/p>\n<p>infringement detected and magnitude of the evasion <\/p>\n<p>or infringement detected and special efforts or <\/p>\n<p>ingenuity displayed by the officers concerned, <\/p>\n<p>sanction and announce the grant of suitable rewards <\/p>\n<p>on the spot to be adjusted against the advance <\/p>\n<p>reward that may be sanctioned.\n<\/p>\n<\/p>\n<p>6.\tFinal rewards will be paid after adjusting the <\/p>\n<p>advance rewards, if any, paid in the <\/p>\n<p>mentioned\/indicated in proceeding paras. <\/p>\n<p>6.2\tIn respect of the goods described in para <\/p>\n<p>5.1, the remaining 50% of the reward will be <\/p>\n<p>sanctioned both to the informers and Government <\/p>\n<p>servants on adjudication of the case resulting in <\/p>\n<p>confiscation of the goods.  If, however, the party <\/p>\n<p>concerned delays adjudication proceedings by <\/p>\n<p>contesting the imposition of penalty only but the <\/p>\n<p>confiscation of the goods, the final reward may be <\/p>\n<p>sanctioned even prior to the conclusion of the <\/p>\n<p>adjudication proceedings.\n<\/p>\n<p>6.3\tIn all other cases, 25% of the expected final <\/p>\n<p>reward may be paid after adjudication resulting in <\/p>\n<p>confiscation and\/or confirmation of the demand, <\/p>\n<p>infringement and the remaining 50% may be paid after <\/p>\n<p>the conclusion of the appeal\/revision proceedings by <\/p>\n<p>the appropriate authorities (such as Tribunal, FERA <\/p>\n<p>Board, etc.) resulting in the upholding of confiscation, <\/p>\n<p>demand, fine penalties, etc. imposed under the <\/p>\n<p>respective Acts.\n<\/p>\n<\/p>\n<p>7.\tTO WHOM REWARD MAY BE PAID<\/p>\n<p>7.1\tOrdinarily, informers and Government servants <\/p>\n<p>(upto the level of Group `A&#8217; Superintendents\/Assistant <\/p>\n<p>Collectors of Customs and Central Excise\/Assistant <\/p>\n<p>Directors will be eligible for reward depending on the <\/p>\n<p>contribution made by them as a team as well as <\/p>\n<p>individually with regard to the collection of <\/p>\n<p>intelligence, surveillance, effecting of seizure etc.  <\/p>\n<p>Due credit should be given to the staff employed on <\/p>\n<p>investigation.\n<\/p>\n<p>7.2\tGroup `A&#8217; officers above the level of Assistant <\/p>\n<p>Collector\/Assistant Director will not be eligible for <\/p>\n<p>reward on the basis of value of the seizures, etc.  <\/p>\n<p>However, in appropriate cases, government may <\/p>\n<p>consider, in consultation with CCA\/DGRI Director, <\/p>\n<p>Anti Evasion, the grant of lump-sum <\/p>\n<p>payment\/advance increments and\/or recognitions, in <\/p>\n<p>any other manner of the services rendered by them <\/p>\n<p>for which purpose the Heads of Department should <\/p>\n<p>forward their recommendation to the aforementioned <\/p>\n<p>officers with a copy to the Ministry.\n<\/p>\n<\/p>\n<p>8.\t\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026<\/p>\n<p>8.1.1\t\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026<\/p>\n<p>8.1.2\t\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026<\/p>\n<p>8.1.3\tAll case of grant of reward to Government <\/p>\n<p>servants in excess of the limits specified above <\/p>\n<p>should be examined and approved by a Committee <\/p>\n<p>consisting of the following :-\n<\/p>\n<\/p>\n<pre>Amount of reward for                             Constitution of the \n\nGovt. Servants                                       Committee\n\n\n\n1. Rewards in excess of Rs.10,000\/-     1. Head of Department\n\n<\/pre>\n<p>    but not exceeding Rs. One lac          2. Additional Collector                   <\/p>\n<p>    and                                      <\/p>\n<p>3. Senior most Deputy        <\/p>\n<p>Collector\/ Dy. Collector <\/p>\n<p>all the Hqrs.\n<\/p>\n<\/p>\n<p>2. Rewards in excess of Rs.1 Lac        1. Head of Department<\/p>\n<p>    and upto Rs.5 Lacs                           2. Director, Preventive <\/p>\n<p>                                                                  Operations and<\/p>\n<p>                                                              3. Additional Collector\/<\/p>\n<p>                                                                  Special Director in <\/p>\n<p>                                                                  charge  of the Hqrs.\n<\/p>\n<\/p>\n<p>3.  Reward in excess of Rs.5 Lacs     1. Concerned Member of <\/p>\n<p>the C.B.E.C. or G.C.A.\n<\/p>\n<p>as the Case may and<\/p>\n<p>2.\tDGRI\/Director, <\/p>\n<p>Enforcement\/ Director, <\/p>\n<p>Anti-Evasion as the  <\/p>\n<p>case may be, and <\/p>\n<p>3.\tthe Head of <\/p>\n<p>Department<\/p>\n<p>concerned.&#8221;\n<\/p>\n<\/p>\n<p>\t   It is not in controversy that an amendment came to be issued vide <\/p>\n<p>P.No.R-13011\/5\/89.Ad.v. of the Department of Revenue in April 1989 limiting <\/p>\n<p>the total reward to Rs.1 lakh for seizure and to a total limit of Rs.10 lakhs in <\/p>\n<p>ones career, though there was dispute about its relevance and applicability to <\/p>\n<p>the claim of the respondent on the ground that it had no retrospective <\/p>\n<p>application to the seizure effected on 24.2.1989, in this case. <\/p>\n<p>\tThe decision of the Division Bench rendered in affirmance of the one <\/p>\n<p>rendered by the Single Bench suffer from a serious infirmity in not adverting <\/p>\n<p>properly to the basics and fundamentals of the Scheme for Rewards and in <\/p>\n<p>assuming to the contra that when an informer could be given liberally, the <\/p>\n<p>Government servant also, must be shown the same consideration, whereas a <\/p>\n<p>careful scanning through may go to show that an Informant is placed on a <\/p>\n<p>different pedestal than a Government servant.  The rewards are also to be <\/p>\n<p>and can be &#8220;upto 20%&#8221; or as the case may be and not that invariably it must <\/p>\n<p>be as a rule 20% of the estimated market value.  Reward is purely an ex <\/p>\n<p>gratia payment, subject to the Guidelines on the discretion of the competent <\/p>\n<p>authority, though it cannot arbitrarily be denied or refused at whim or fancy <\/p>\n<p>and it should specifically conform to and must be shown to fall or claimed <\/p>\n<p>within the four corners of the Scheme and not by any deviation or modulation <\/p>\n<p>of the Scheme, as the Courts think it should be and if it cannot come strictly <\/p>\n<p>within the four corners of it, such claim may have to be dealt with only under <\/p>\n<p>the residuary powers enabling the grant of reward.  That apart, being ex <\/p>\n<p>gratia, no right accrues to any sum as such till it is determined and awarded <\/p>\n<p>and, in such cases, normally it should not only be in terms of the Guidelines <\/p>\n<p>and Policy, in force, as on the date of consideration and actual grant but has <\/p>\n<p>to be necessarily with reference to any indications contained in this regard in <\/p>\n<p>the Scheme itself.  The line of decisions relation to vested rights accrued <\/p>\n<p>being protected from any subsequent amendments may not be relevant for <\/p>\n<p>such a situation and it would be apposite to advert to the decision of this <\/p>\n<p>Court reported in State of Tamil Nadu Vs. M\/s Hind Stone &amp; Ors. [(1981) 2 <\/p>\n<p>SCC 205].  That was a case wherein this Court had to consider the claims of <\/p>\n<p>lessees for renewal of their leases or for grant of fresh leases under the Tamil <\/p>\n<p>Nadu Minor Mineral Concession Rules, 1959.   The High Court was of the <\/p>\n<p>view that it was not open to the State Government to keep the applications <\/p>\n<p>filed for lease or renewal for a long time and then dispose them of on the <\/p>\n<p>basis of a rule which had come into force later.  This Court, while reversing <\/p>\n<p>such view taken by the High Court, held that in the absence of any vested <\/p>\n<p>rights in anyone, an application for a lease has necessarily to be dealt with <\/p>\n<p>according to the rules in force on the date of the disposal of the application, <\/p>\n<p>despite the delay, if any, involved although it is desirable to dispose of the <\/p>\n<p>applications, expeditiously.  Therefore, the reward could not have been <\/p>\n<p>allowed in this case completely ignoring the amendments, which came into <\/p>\n<p>force in April 1989, merely because the seizure was in February 1989.  That <\/p>\n<p>apart, under the Scheme final reward is postulated only on adjudication of the <\/p>\n<p>case resulting in confiscation of the goods as found stated in clause 6 of the <\/p>\n<p>Guidelines and that should, therefore, be crucial and relevant date for <\/p>\n<p>consideration of award and, therefore, the Guidelines, as are in force on that <\/p>\n<p>date, will be really applicable and would relevant.  Consequently, the <\/p>\n<p>exclusion of the amendment, which was made in April 1989, from <\/p>\n<p>consideration in this case, may not be proper, and the conclusion to the <\/p>\n<p>contrary by the High Court, cannot be sustained.<\/p>\n<p>\tThe interpretation placed as though the restrictions in clause 7 will <\/p>\n<p>have no relevance to the officers other than the officers specified of the <\/p>\n<p>Department of Central Excise\/Customs cannot be justified, either on the <\/p>\n<p>language of the Guidelines or on the conspectus of the Scheme for rewards.  <\/p>\n<p>The classification made is between informers on the one hand and <\/p>\n<p>Government servants on the other \u2013 and not with reference to any particular <\/p>\n<p>class of category of Government servants alone.  The specification of certain <\/p>\n<p>officers are meant to illustrate the level and standard of their category\/class <\/p>\n<p>with particular reference to the gradation of offices they hold and the granting <\/p>\n<p>authority or courts, if need be, have to necessarily arrive at the equivalence in <\/p>\n<p>other Departments as well \u2013 from among the other class of Government <\/p>\n<p>servants, as a whole, serving either under the State or Central Government \u2013 <\/p>\n<p>and the Scheme cannot be mutilated otherwise or moulded to suit the <\/p>\n<p>consideration of a particular or given case, favourably.  Clause 8.1.3 provides <\/p>\n<p>the necessary clue in this regard and the consideration, if at all, has to be with <\/p>\n<p>reference to the provisions contained in clause 4 and the various Guidelines <\/p>\n<p>contained therein.\n<\/p>\n<p>\tFor all the reasons stated above, we are unable to accord approval to <\/p>\n<p>the decision of the High Court.  The judgment under challenge is, therefore, <\/p>\n<p>set aside.  On the facts of the case, it is found that on 4.7.1995, after the <\/p>\n<p>decision of the learned Single Judge, a High Level Committee seems to have <\/p>\n<p>considered the claims of the respondent for reward and recommended a sum <\/p>\n<p>of Rs.1.25 lakhs, subject to the final decision of the High Court, and kept in <\/p>\n<p>abeyance the actual disbursal of the sum.  In the light of all these and instead <\/p>\n<p>of relegating the matter for fresh review, by the authorities in the Government, <\/p>\n<p>involving further delay also, we would instead direct the payment of a reward <\/p>\n<p>of Rs.2.50 lakhs, treating the same as a special case and the delay already <\/p>\n<p>involved and the decision said to have been taken \u2013 in order to give a quietus <\/p>\n<p>to the problem.  The sum directed by this order may be disbursed within a <\/p>\n<p>period of sixty days from this date without fail.  The appeal shall stand allowed <\/p>\n<p>to the extent indicated above and subject to the payment ordered above.  The <\/p>\n<p>respondent has been driven to unnecessary litigation by completely denying <\/p>\n<p>anything initially for all his efforts and had to face proceedings in this Court <\/p>\n<p>also.  The appellant will pay Rs.15,000\/- for the costs of the respondent, while <\/p>\n<p>bearing their own costs.\n<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Union Of India vs R. Padmanabhan on 13 August, 2003 Author: R Babu Bench: S. Rajendra Babu, Doraiswamy Raju. CASE NO.: Appeal (civil) 2769 of 1999 PETITIONER: Union of India RESPONDENT: Vs. R. Padmanabhan DATE OF JUDGMENT: 13\/08\/2003 BENCH: S. RAJENDRA BABU &amp; DORAISWAMY RAJU. JUDGMENT: J U D G M [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-185417","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Union Of India vs R. 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