EAST INDIA COMMERClAL CO., LTD. CALCUTTA AND ANOTHER vs THE COLLECTOR OF CUSTOMS, CALCUTTA

The Supreme Court held that the application under Article 226 of the Constitution was maintainable as the authorities lacked jurisdiction to initiate proceedings against the appellants for selling imported goods in violation of the conditions of their import licence. The Court clarified that Section 5 of the Imports and Exports (Control) Act, 1947 does not penalize breaches of licence conditions, only contraventions of orders made under the Act. The High Court's order to restrain the proceedings was upheld, affirming the principle that jurisdictional errors can be challenged under Article 226.