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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

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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.)




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