Madras HC quashed suspension of a customs broker, citing unexplained delay and requirement for immediate, reasoned action.
Delay in Action Quashes Broker Suspension
The Madras High Court quashed the summary suspension of a customs broker’s licence, ruling that unexplained delay in initiating proceedings vitiated the action. The Directorate of Revenue Intelligence (DRI) acted six months after the alleged misconduct, failing to record reasons for immediate suspension as required under relevant CBIC guidelines and Rule 8 of the Licensing of Customs Agents Rules, 1997.
The Court held that suspension, being a coercive interim measure, must be exercised promptly and with reasons recorded contemporaneously. The failure to act swiftly suggested lack of urgency, undermining the justification for bypassing a full disciplinary inquiry. However, the Court allowed the Department to initiate fresh proceedings, observing that revocation of licence remained open based on the same allegations.
This decision reinforces procedural due process in administrative disciplinary actions. Legal advisors must ensure that enforcement agencies comply with timelines and documentation requirements before invoking summary suspensions. Delay may not invalidate prosecution but can invalidate interim measures with serious professional consequences.