Bombay High Court
Kaka CarpetsversusUNION OF INDIA
- Decided
- Disposal
- DISPOSED OFF
Holding
The DRI must refrain from proceeding under the show‑cause notice until the Allahabad High Court passes appropriate orders.
Summary
M/s. Kaka Carpets & Ors. filed a writ petition challenging the Directorate of Revenue Intelligence's (DRI) action taken under a show‑cause notice adjudicated by the DGFT. The Allahabad High Court had stayed that action, and the petitioners feared DRI would proceed despite the stay. The Bombay High Court held that DRI must await appropriate orders from the Allahabad High Court before taking any action, rendering the petitioners' apprehension unfounded. All contentions were kept open for adjudication at a later stage if necessary. Consequently, the petition was disposed without any further order.
Issues considered
- What is the effect of the Allahabad High Court's stay on the DRI's action under the show‑cause notice?
- Whether the DRI can proceed with enforcement before the Allahabad High Court issues further orders?
Subjects
- show cause notice
- DGFT
- DRI
- stay order
- High Court
- petition disposal
Judgment
ARJUN 7-wp 4035-26.doc
MACHHINDRA
KADAM IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Digitally signed by
ORDINARY ORIGINAL CIVIL JURISDICTION
ARJUN
MACHHINDRA
KADAM WRIT PETITION NO. 4035 OF 2026
Date: 2026.08.29
14:32:06 +0530
M/s. Kaka Carpets & Ors. … Petitioners
Versus
Union of India & Ors. ... Respondents
__________________________
Dr. Sujay Kantawala a/w. Mr. Anupam Dighe, Ms. Chandni Tanna i/b India
Law Alliance for the Petitioners.
Mr. Jitendra B. Mishra a/w. Ms. Sangeeta Yadav, Mr. Ashutosh Mishra and
Mr. Umesh Gupta for the Respondents.
__________________________
CORAM : M. S. KARNIK AND
SANDESH D. PATIL, JJ.
DATED : 29th AUGUST, 2026.
P. C.:
1. We have heard learned counsel for the petitioners.
2. Affidavit-in-Reply filed by the respondents be taken on record.
3. Mr. Mishra, learned counsel for the respondents-DRI submits that the
Allahabad High Court has stayed the action taken pursuant to the show
cause notice adjudicated by the DGFT. On instructions he therefore
submits that the DRI shall proceed to take appropriate action in terms of
the Order of this Court dated 24th June, 2025 only after appropriate orders
are passed by the Allahabad High court. In the light of the stand of DRI,
the apprehension of the petitioner, at this stage, is not well founded.
4. All contentions of the petitioner are kept open to be adjudicated at
Amk 1/2
7-wp 4035-26.doc
the appropriate stage, if necessary, after the petition before the Allahabad
High Court is decided.
5. Keeping all contentions open, the petition is disposed of.
(SANDESH D. PATIL, J.) (M. S. KARNIK, J.)
Amk 2/2
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