TRIVENI PRASAD RAMKARAN VERMA versus THE STATE OF MAHARASHTRA

Citation: [1977] 1 S.C.R. 519 · Decided: 07-09-1976 · Supreme Court of India · Bench: P.N. BHAGWATI · Disposal: Case Partly allowed

Judgment (excerpt)

-~ 
; 
•' 
TRIVENI PRA5AD RAMKARAN VERMA 
v. 
THE STATE OF MAHARASHTRA 
September 7, 1976 
[P. N. BHAGWATI AND S. MURTAZA FAZAL ALI, JJ.] 
519 
Gold Control Rules, 1963, w/1ether b1c/udes smuggled gold within their 
ambit. 
The appellant was found carrying smuggled gold with foreign markings, con-
cealed on his person. He was convicted by the Presidency Magistrate under 
Section 135(b) read with Section 135(ii) of the Customs Act, 1962, and Rule 
126H (2)(d) read with Rule 126 P(2)(iv) of the Gold Control Rules, 1965. 
the High Court upheld the convictions. The appellant contended that th~ gold 
allegedly recovered from him was smuggled gold, and hence not covered by the 
Gold Control Rules, 1963. 
Dismissing the appeal the Court, 
HELD : The Gold Control Rules, 1963, seek to control and regulate deal-
ings in gold, and are applicable alike to smuggled gold as to non-smuggled 
gold, and the inhibition of Rule 126 H(2) (d) that no person other than a 
licensed dealer shall acquire gold except in accordancd with a permit or authori-
sation granted by the Administrator, is not confined in its operation to non-
smuggled gold but applies equally in relation to smuggled gold. The object and 
purpose of the restrictions imposed by the Gold Control Rules, 1963, would 
be 
frustrated 
by 
excluding 
from 
their abmit and 
coverage, 
smuggled 
gold. 
[523 A-D; 524 B-C] 
Aravinda Mohan Sinha v. Prohlad Chand Samenta AIR 1970 Cal 437 over-
A 
B 
c 
D 
ruled. 
E 
CRIMINAL APPELLATE JURISDICTION : Criminal Appeal No. 264 of 
1971. 
(Appeal by Special Leave from the Judgment and Order dated 
19/20th August, 1971 of the Bombay High Court in Cr.A. No. 650 
of 1970 with Crl. Rev. No. 886/70). 
B. R. Agarwala and P. B. Agarwal, for the appellant. 
H. R. Khanna and M. N. Shroff, for the respondent. 
The Judgment of the Court was delivered by 
BHAGWATI, J.-The appellant was tried before the 
Presidency 
Magistrate, 25th Court, Mazgaon, Bombay for offence under clauses 
(a) and (b) of section 135 read with section 135(ii) of the Customs 
Act, 1962 and Rule 126H(2) (d) read with Rule 126P(2) (iv) 
of 
the Gold Control Rules 1963. The prosecution case against the appel-
lant was that on 7th September, 1965 about 3.45 p.m. 
Inspector 
Tilwe, who was at the material time Senior Grade Inspector of Cus-
toms attached to Gold Circle, Central Excise, Bombay, received in-
formation that two persons would be coming down from a building 
known as Hira Mahal, situated at Kalbadevi Road, and they will be 
carrying gold in the handle of a cane basket and also in their shoes 
17-l 104SCI/76 
F 
G 
H 
A 
B 
c 
D 
E 
F 
G 
H 
520 
SUPREME COURT REPORTS 
[1977) 1 S.C.R. 
ln~pect<;>r Tilwe, on receipt of this information, sent for Inspector 
N1cham and both of them kept guard outside Hira Mahal building 
from about 8.00 p.m. Around 8.45 p.m., the appellant accompanied 
by his material uncle's son Dwarkaprasad, his son Dalip aged 9 years 
and his servant by the name of Mahadev, came out of Hira Mahal 
building. 
The appellant was carrying a basket in his hand and after 
coming out of the building, the appellant and his companions got into 
a Victoria and proceeded towards Victoria Terminus Station. Inspec-
tor Tilwe and Inspector Nichani followed these persons and when the 
appellant and his companions got down from the Victoria and entered 
the platform, Inspector Tilwe accosted them and took them to the 
office of the Assistant Station Master and searched them there in the 
presence of three panchas. 
Two of the panchas were 
selected by 
Inspector Tilwe while tJ1e third volunteered to act as Pancha. 
On 
taking search, it was found that the shoes worn by the appdlant and 
Dwarkaprasad had specially made cavities and four gold biscuits with 
foreign markings were found in the shoes of each of these two per-
sons. 
The basket carried by the appellant also contained 27 
gold 
biscuits with foreign markings concealed in the handle which was made 
of brass and which had a specially made cavity in it for concertling 
gold biscuits. 
While the search was going on, one Ticket Collector 
called Tharandas Bhatia arrived on the scene and he also witnessed 
the search. 
Inspector Tilwe seized the gold biscuits which 
were 
recovered from. the appellant and Dwarkaprasad, in the reasonable 
belief that they were smuggled and hence liable to confiscation under 
section 111 of the Customs Act, 1962. 
This search and seizure was 
recorded in a Panchanama Ex. X, which was 

Excerpt shown. Read the full judgment & AI analysis in Lexace.