Tag: #RajasthanHighCourt

  • Rajasthan High Court Quashes 14-Year-Old Customs Drawback Proceedings for Unreasonable Delay

    Rajasthan High Court Quashes 14-Year-Old Customs Drawback Proceedings for Unreasonable Delay

    Date: 31.10.2026

    The Rajasthan High Court has set aside a 2008 customs show-cause notice and a 2022 adjudication order, holding that a 14-year delay without explanation or communication violated procedural fairness and natural justice.

    Case at a glance

    In Shivek Sharma v. Union of India (D.B. Civil Writ Petition No. 19485/2022), decided on 9 September 2025, the Rajasthan High Court at Jaipur examined whether Customs authorities could revive and adjudicate a long-pending allegation concerning duty drawback and DEPB benefits after more than a decade of inactivity.

    The petitioner, Shivek Sharma, was the legal heir of the late proprietor of M/s J. Minakshi International. The Directorate of Revenue Intelligence had investigated alleged misuse of export-promotion schemes involving exports of goods such as readymade garments, leather items and brass items. A show-cause notice was issued on 31 March 2008, but the department did not proceed to adjudicate it until 2021-22. An Order-in-Original creating recovery demands was eventually issued on 18 October 2022.

    The Court ruled that this prolonged, unexplained delay made the proceedings legally unsustainable.

    Background of the dispute

    The DRI’s investigation concerned alleged fraudulent export transactions during 2001-05. It resulted in a show-cause notice against several parties, including M/s J. Minakshi International, a proprietary concern of the petitioner’s father.

    Several developments made the delay especially significant:

    • The notice was issued in 2008, when the petitioner was 13 years old.
    • The proprietor, Pawan Kumar Sharma, died in April 2021.
    • The department began hearing-related action only after approximately 13 years of silence.
    • The petitioner stated that he had neither inherited nor carried on the business and was unaware of the pending proceedings.
    • After receiving hearing notices, he sought the underlying notice and relied-on documents, explaining that he could not reasonably understand or answer transactions dating back many years.

    Despite these objections, Customs passed an order in October 2022, seeking recovery of duty drawback and interest from the petitioner as legal heir.

    The legal issue: Can Customs adjudicate after 14 years?

    The central issue was not merely whether the Customs Act or Drawback Rules contained a fixed limitation period. It was whether administrative and quasi-judicial powers can be exercised after such an extreme delay when the affected party was not informed of the status of the case.

    The petitioner argued that even where legislation does not prescribe a specific deadline, adjudication must occur within a reasonable period. He also relied on the statutory timelines reflected in Section 28(9) of the Customs Act to emphasize the importance of prompt decision-making in customs matters.

    The Customs department argued that the case involved recovery of drawback and DEPB benefits under the Drawback Rules, rather than an ordinary duty-demand case. It also argued that the 2018 amendment introducing timelines under Section 28(9) did not apply retrospectively and that an appellate remedy was available.

    What the Court held

    The High Court rejected the department’s position and held that the doctrine of reasonable time applies to adjudication proceedings generally. The absence of an express statutory deadline does not permit authorities to keep a show-cause notice alive indefinitely.

    The Court identified several decisive failures:

    • Inordinate delay: The order was passed more than 14 years after the show-cause notice.
    • No explanation: Customs did not provide a cogent reason for the delay.
    • No communication: The petitioner and his father were not told that the matter remained pending or had been placed in a β€œcall book.”
    • No supporting record: The department did not produce material proving any transfer to the call book or explaining the basis for it.
    • No fault of the petitioner: The delay was not attributed to the petitioner or his late father.
    • Ignored submissions: The adjudicating authority did not meaningfully address the petitioner’s arguments and cited case law on stale proceedings.

    The Court described the 14-year delay as incompatible with lawful, fair and effective quasi-judicial adjudication. It reiterated the principle expressed in the maxim lex dilationes abhorretβ€”the law abhors delay.

    Why lack of communication mattered

    A key part of the ruling is that delay becomes particularly unfair when the noticee is left uninformed. The Court noted that communication is necessary where proceedings are kept in abeyance or transferred to a call book.

    Without notice, the affected person may lose access to records, witnesses and other evidence needed for a proper defence. Long silence can also reasonably lead a person to believe that the proceedings have been abandoned or concluded.

    Here, the department was silent for more than a decade. The Court found that this lack of transparency caused grave prejudice and violated natural justice.

    Writ petition allowed despite an appellate remedy

    The department argued that the petitioner should pursue an appeal against the Order-in-Original. The Court held that the availability of an appeal did not bar the writ petition in these circumstances.

    The challenge was based on a fundamental procedural defect: the arbitrary and delayed revival of proceedings, coupled with a breach of natural justice. Because the very adjudication process was found to be vitiated, the Court considered writ jurisdiction appropriate.

    Final outcome

    The Rajasthan High Court allowed the writ petition and quashed:

    1. The show-cause notice dated 31 March 2008, insofar as it concerned the petitioner; and
    2. The Order-in-Original dated 18 October 2022 passed under Section 122 of the Customs Act.

    The Court concluded that the petitioner was justified in treating the long-dormant proceedings as abandoned.

    Significance of the ruling

    This decision reinforces an important safeguard in customs and tax administration: authorities must adjudicate show-cause notices within a reasonable time, even where the governing provision does not specify a strict deadline.

    For businesses, proprietors, legal heirs and other noticees, the judgment confirms that a prolonged and unexplained revival of old proceedings can be challenged when it causes prejudice, particularly where the department failed to disclose the status of the case or preserve procedural fairness.

    For revenue authorities, it underscores that public-revenue objectives require diligence and timely action, not indefinite pendency.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Rajasthan HC Grants Bail Where Samples Were Drawn from Just One of Five Bags

    Rajasthan HC Grants Bail Where Samples Were Drawn from Just One of Five Bags

    Date: 26.09.2026

    The Rajasthan High Court has granted bail to an accused in an NDPS case involving an alleged recovery of 79.400 kg of Doda Chura (poppy straw), after finding that samples for forensic examination were taken from only one out of five bags allegedly recovered from him.

    Justice Ganesh Ram Meena held that since no samples were drawn from the remaining four bags, only the material contained in the sampled bag could, at this stage, be treated as the alleged contraband. That bag weighed 19.80 kg, which was below the commercial quantity threshold. Consequently, the stringent restrictions governing bail under Section 37 of the Narcotic Drugs and Psychotropic Substances Act, 1985 were not attracted in the circumstances considered by the Court.

    Case Arose From Alleged Recovery of 79.400 Kg Doda Chura

    • Sitaram alias Udham Meena filed his second bail application under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS).
    • The proceedings arose from FIR No. 94/2025, registered at Police Station Harnavda Shahji, District Baran, Rajasthan, for offences under Sections 8, 15 and 25 of the NDPS Act.
    • The petitioner’s first bail application had earlier been dismissed as withdrawn by the High Court on 8 May 2026.
    • According to the FIR, the alleged contrabandβ€”Doda Churaβ€”was recovered from the petitioner’s possession in five separate bags, having a combined weight of 79.400 kg.

    Samples Drawn From Only Bag β€˜C’

    • The petitioner’s principal argument concerned the manner in which the samples were drawn.
    • According to the inventory report prepared before the Judicial Officer, two samples were taken only from the packet/bag marked β€˜C’. No samples were taken from the remaining four bags for examination by the Forensic Science Laboratory (FSL).
    • The defence therefore argued that there was no forensic material to establish that the substances contained in bags A, B, D and E were also contraband.
    • It was submitted that only the contents of bag C could be treated as alleged contraband for the purpose of considering bail.
    • Crucially, bag C weighed only 19.80 kg. The petitioner argued that this was below commercial quantity and hence the restrictions contained in Section 37 of the NDPS Act would not apply.

    State: All Five Bags Contained Similar Material

    • The Public Prosecutor opposed the second bail application.
    • The State argued that samples were taken from only one bag because the material found in the other bags appeared to be the same or similar.
    • It further contended that the total alleged recovery was above commercial quantity and therefore the restrictions under Section 37 of the NDPS Act continued to apply.
    • The High Court, however, did not accept that contention for the purpose of deciding the bail application.

    Court Examines Inventory and Judicial Officer’s Certificate

    • The High Court examined the record and found that the alleged recovery made on 31 May 2025 had been packed in five separate bags marked A, B, C, D and E.
    • The inventory report and certificate issued by the Additional Chief Judicial Magistrate No. 2, Chhabra, Baran on 6 June 2025 showed that only two samples, marked F and G, were drawn from bag C.
    • No sample was drawn from bags A, B, D or E.
    • This factual circumstance became decisive for the bail determination.

    Unsampled Bags Could Not Be Treated as Contraband at Bail Stage

    • The High Court held that in the absence of samples from the other four bags, the material contained in bag C alone could be treated as the alleged contraband for the purpose under consideration.

    The Court recorded:

    • β€œthe material which has been found to be in bag marked as-C can only be treated to be alleged contraband”
    • Since bag C weighed 19.80 kg, the quantity attributable to the sampled material was below commercial quantity.
    • The ruling is significant because the total physical recovery alleged by the prosecution was 79.400 kg. However, for the bail assessment, the Court did not aggregate the contents of the four bags from which no sample had been taken with the sampled bag merely because the substances appeared similar.

    Rajasthan HC Relies on Hariram v. State of Rajasthan

    • The petitioner relied upon the Rajasthan High Court’s recent order in Hariram v. State of Rajasthan, S.B. Criminal Miscellaneous Bail Application No. 741/2026, decided on 20 April 2026.
    • In Hariram, six bags were allegedly recovered containing Doda Chura. However, samples had been drawn from only two bagsβ€”marked A and E.
    • The combined weight of those two sampled bags was 45.400 kg, below the commercial quantity of 50 kg applicable to poppy straw.
    • The Court in Hariram observed that because no samples had been taken or sent to the FSL from the remaining bags, those bags could not be treated as containing contraband merely on assumption, particularly when there was nothing on record showing that the entire recovered material had first been mixed and thereafter sampled.
    • The same reasoning was applied in Sitaram’s case.

    Supreme Court’s Puranmal Jat Decision Considered

    The Hariram order, reproduced in the present judgment, also relied upon the Supreme Court’s decision in:

    • Puranmal Jat v. State of Rajasthan, Criminal Appeal No. 3394/2023 arising out of SLP (Crl.) No. 10670/2023, decided on 2 November 2023.
    • In that case, the alleged recovery was approximately 35 kg and 150 grams of Doda Posh/poppy straw, while the commercial quantity was 50 kg.
    • The Supreme Court observed that because the recovered quantity was below commercial quantity, the restriction on grant of bail under Section 37 of the NDPS Act did not apply. The accused had also remained in custody for more than seven months and the charge sheet had already been filed.

    Section 37 NDPS Act Not Attracted to 19.80 Kg Sampled Bag

    • Applying the above reasoning, the Rajasthan High Court treated 19.80 kg in bag C as the relevant alleged contraband quantity for the bail consideration.
    • Because this was below commercial quantity, the defence contention was that the special restrictions under Section 37 were not attracted, and the Court’s reasoning proceeded on that basis.
    • This distinction was particularly important because Section 37 imposes stringent conditions for release on bail in cases involving commercial quantity.
    • The order, however, is a bail-stage determination and does not finally adjudicate the nature or quantity of the entire seized material.

    More Than One Year in Custody

    • The Court also took into consideration the period of incarceration.
    • Sitaram had remained in custody since 31 May 2025, meaning that by the date of the order on 25 September 2026, he had spent more than one year in custody.
    • Considering the sampling issue, the quantity of the sampled bag and the period of custody, the High Court found it just and proper to enlarge him on bail.
    • Importantly, the Court expressly stated that it was doing so without expressing any opinion on the merits or demerits of the case.

    Second Bail Application Allowed

    • The Rajasthan High Court accordingly allowed the second bail application.

    The Court directed Sitaram alias Udham Meena to be released upon furnishing:

    • a personal bond of β‚Ή1,00,000; and
    • two sureties of β‚Ή50,000 each,

    to the satisfaction of the Trial Court.

    He was also directed to remain present before the Trial Court, or any court to which the proceedings may be transferred, on subsequent hearing dates and whenever required.

    Bail Can Be Cancelled for Similar Future Offence

    • The High Court imposed an additional safeguard.
    • It directed that if the petitioner is found involved in any other criminal case of a similar nature in the future, the prosecution would be at liberty to move an application seeking cancellation of his bail. Sitaram Alias Udham Meena RHC
    • Thus, the order grants liberty to the accused pending trial but leaves the prosecution free to seek cancellation if the stipulated condition is breached.

    Cases Referred

    Two decisions were central to the reasoning recorded in the order:

    1. Hariram v. State of Rajasthan, S.B. Criminal Miscellaneous Bail Application No. 741/2026, decided on 20 April 2026 β€” relied upon for the principle that where multiple bags are separately seized but only some are sampled, unsampled bags cannot automatically be treated as contraband in the absence of FSL examination or evidence that the entire material was mixed before sampling.
    2. Puranmal Jat v. State of Rajasthan, Criminal Appeal No. 3394/2023 arising from SLP (Crl.) No. 10670/2023, decided on 2 November 2023 β€” Supreme Court decision noting that where recovered poppy straw was below the stipulated commercial quantity, the Section 37 restriction did not apply.

    Key Takeaway

    The ruling underscores the importance of representative sampling and forensic examination in multi-bag NDPS recoveries, particularly when the prosecution seeks to rely upon the combined weight to invoke the stringent commercial-quantity bail restrictions under Section 37.

    Where five separate bags were allegedly recovered but the inventory showed that samples were taken from only one bag, the Rajasthan High Court treated only the 19.80 kg contained in that sampled bag as the alleged contraband for the purpose of deciding bail. Since that quantity was below commercial quantity and the accused had spent more than a year in custody, the Court granted bail.

    The ruling should nevertheless be read in its procedural context: the High Court did not acquit the accused or finally hold that the remaining four bags contained no contraband.

    Its determination was confined to the second bail application, and the Court expressly refrained from expressing any opinion on the merits of the prosecution case.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Rajasthan High Court: 15-Year Delay in Trademark Application Violates Natural Justice

    Rajasthan High Court: 15-Year Delay in Trademark Application Violates Natural Justice

    Date: 22.09.2026

    The Rajasthan High Court has held that trademark registration applications cannot be kept pending indefinitely, observing that excessive delay in deciding such applications violates principles of natural justice and that the right to their speedy and expeditious disposal is protected under Article 21 of the Constitution of India.

    Justice Anoop Kumar Dhand made the observations while dealing with a petition filed by Mrs. Nirmala Kabra, whose application for registration of the trademark β€œBreastone”, filed in June 2010, had remained undecided for more than 15 years.

    Trademark Application Pending Since 2010

    • The petitioner approached the High Court with a limited prayer seeking a direction to the Registrar of Trade Marks to decide her application for registration of the mark β€œBreastone.”
    • The application had been filed on 25 June 2010. According to the petitioner, despite the passage of considerable time, the Registrar had neither decided the application nor passed a reasoned and speaking order. She therefore sought a time-bound direction for disposal of the application.
    • The Registrar opposed the petition, though the Court recorded that counsel appearing for the Registrar was not in a position to controvert the petitioner’s submissions.

    Opposition Filed in 2013; Matter Stagnant After 2017

    • Examining the record, the High Court found that the application for β€œBreastone” was filed on 25 June 2010 and was subsequently opposed by Respondent No. 2, Hassnar Health and Personal Care, through an opposition dated 7 March 2013.
    • After completion of pleadings, the matter was posted for recording evidence on 25 July 2017. However, according to the judgment, nothing further had been done for more than eight years thereafter.
    • The case thus presented what the Court regarded as a striking example of delay in India’s trademark registration system.

    Rule 50 of Trade Marks Rules Provides Time-Bound Framework

    • The High Court examined Rule 50 of the Trade Marks Rules, 2017, which governs hearing and decision in trademark opposition proceedings.
    • Rule 50 requires the Registrar, after closure of evidence, to notify the parties of the first date of hearing. It also regulates adjournments and provides that no party should receive more than two adjournments, with each adjournment not exceeding 30 days.
    • The Court observed that these restrictions demonstrate that the Rules contain a mechanism intended to ensure expeditious disposal of trademark registration proceedings.

    15-Year Delay Violated Rule 50: High Court

    • The High Court strongly criticised the delay.
    • It observed that the trademark application had remained pending for more than one and a half decades, which the Court treated as a clear violation of the mandatory provisions of Rule 50.
    • The Registrar, the Court said, is expected to follow the Trade Marks Rules, 2017 in their β€œletter and spirit” and cannot be permitted to keep matters pending indefinitely.

    Excessive Delay Violates Principles of Natural Justice

    • The judgment also addressed the broader consequences of administrative delay in intellectual property proceedings.
    • According to the Court, prolonged pendency can lead to loss of evidence, increased costs and a sense of injustice among the parties. Such delays may also undermine public confidence in the fairness and efficiency of the statutory system and leave businesses in prolonged uncertainty.
    • Significantly, the Court held that excessive delay in disposal of trademark applications amounts to a violation of principles of natural justice, since statutory procedures are required to be conducted fairly and within a timely framework.

    Speedy Disposal of Trademark Applications Is Protected Under Article 21

    • One of the most significant observations in the judgment concerns Article 21 of the Constitution.
    • The High Court held that trademark registration applications cannot remain pending for decades and that the Registrar is expected to decide them within a reasonable period.
    • The Court went on to state that the right to speedy and expeditious disposal of such applications is a valuable and cherished right of the applicant guaranteed under Article 21, treating it as an integral and essential component of the fundamental right to life.
    • This gives the judgment significance beyond the individual trademark dispute, because the Court connected administrative efficiency in trademark proceedings with constitutional principles of timely decision-making.

    Registrar Directed to Decide β€œBreastone” Application Within Three Months

    • Taking serious note of the fact that the petitioner’s application had remained undecided for more than 15 years, the High Court issued both case-specific and general directions.
    • For Mrs. Kabra’s application, the Registrar was directed to decide the pending trademark application as expeditiously as possible and within three months from receipt of the certified copy of the order.
    • Importantly, the High Court did not direct registration of the trademark β€œBreastone” and did not decide the merits of the opposition. The relief was confined to ensuring a timely decision by the competent statutory authority.

    General Direction for All Pending Trademark Applications

    • The Court did not restrict its observations to the petitioner’s individual application.
    • It issued a general direction to the Registrar of Trade Marks to decide all pending applications expeditiously, as early as possible and in accordance with Rule 50 of the Trade Marks Rules, 2017.
    • This aspect gives the judgment wider administrative significance for applicants whose trademark registration or opposition proceedings have remained pending for extended periods.

    High Court Calls for Strategy to Address Trademark Backlog

    • Before concluding, the Court also addressed the systemic problem of pending trademark applications.
    • It expected the Registrar of Trade Marks to develop a strategy to tackle the backlog and observed that a fast and simple mechanism for securing intellectual property rights and protecting businesses is the need of the hour.
    • According to the Court, expeditious disposal of pending trademark applications would enable the system to resolve disputes more fairly and effectively while maintaining public confidence in the trademark administration framework. A copy of the order was directed to be sent to the Registrar of Trade Marks for necessary compliance.

    Why the Judgment Matters

    • The ruling carries significance for trademark applicants and businesses facing prolonged delays before the Trade Marks Registry. It establishes three notable propositions from the Court’s reasoning: Rule 50 provides an expeditious procedural framework; excessive administrative delay can violate principles of natural justice; and the Court treated speedy disposal of trademark applications as protected by Article 21.
    • At the same time, the judgment should not be read as creating automatic registration rights merely because an application has remained pending for a long period. The Registrar retains authority to decide the application and any opposition on their merits.

    Key Takeaway

    The Rajasthan High Court has made it clear that the Trade Marks Registry cannot allow registration applications to remain undecided for decades. In Mrs. Nirmala Kabra’s case, a trademark application pending for more than 15 years prompted the Court not only to direct its disposal within three months but also to issue a broader direction for expeditious disposal of pending trademark applications and call upon the Registrar to formulate a strategy to tackle the backlog.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Handy Download:

    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Rajasthan High Court: Trademark Applications Cannot Remain Pending Indefinitely; Speedy Disposal Is a Right Protected Under Article 21

    Rajasthan High Court: Trademark Applications Cannot Remain Pending Indefinitely; Speedy Disposal Is a Right Protected Under Article 21

    Date: 21.09.2026

    The Rajasthan High Court, Jaipur Bench, has held that trademark registration proceedings cannot be kept pending indefinitely and that the right to a speedy and expeditious hearing and timely disposal of statutory applications is an inalienable right of every litigant.

    Justice Maneesh Sharma, allowing a writ petition filed by Mittal Commerce Classes Pvt. Ltd., directed the Registrar of Trade Marks, Ahmedabad to endeavour to decide the company’s pending trademark application along with the connected opposition expeditiously and preferably within four months from receipt of a certified copy of the order.

    The order was passed on September 14, 2026, in Mittal Commerce Classes Pvt. Ltd. v. Union of India & Ors., S.B. Civil Writ Petition No. 9703/2026, Neutral Citation 2026:RJ-JP:36884.

    Trademark Application Pending Since 2018

    • Mittal Commerce Classes Pvt. Ltd., which provides educational coaching and training services, approached the High Court complaining of prolonged delay in adjudication of its trademark proceedings.
    • The company stated that it was already the registered proprietor of Trade Mark No. 2039137 dated October 18, 2010.
    • It subsequently filed Trademark Application No. 3944189 in Class 41 for the same/associated mark β€œMittal Commerce Class” before the Trade Marks Registry, Ahmedabad on September 13, 2018.
    • Despite completion of pleadings and filing of evidence, the trademark application remained undecided.
    • The petitioner argued that this prolonged pendency was causing serious prejudice and was inconsistent with the statutory scheme contemplated under the Trade Marks Rules, 2017.

    Opposition Filed in 2020, But Proceedings Remained Undecided

    • The High Court examined the procedural history and found that Trademark Application No. 3944189 had been filed on September 13, 2018.
    • Opposition No. 1043339 was subsequently filed on May 4, 2020.
    • After completion of pleadings by both parties, the matter was posted for evidence. However, the Court noted that nothing further had transpired despite the passage of more than six years.
    • By the time the High Court considered the matter, the trademark application had remained pending for approximately eight years, while the opposition had been pending for more than six years.

    Petitioner Invokes Rule 50 of Trade Marks Rules, 2017

    • Mittal Commerce Classes relied principally upon Rule 50 of the Trade Marks Rules, 2017, which governs hearing and decision in trademark opposition proceedings.
    • The company sought a direction requiring the Registrar to hear and finally dispose of the pending application and connected opposition without unnecessary adjournments or further avoidable delay.
    • The petitioner initially sought disposal preferably within 30 days, although the High Court ultimately fixed a preferred period of four months.

    What Does Rule 50 Require?

    • The High Court reproduced Rule 50 in detail.
    • Under Rule 50(1), after closure of evidence, the Registrar is required to issue notice to the parties specifying the first date of hearing. That hearing must be fixed for a date at least one month after the date of the first notice.
    • Rule 50(2) allows a party to seek an adjournment for reasonable cause through Form TM-M, accompanied by the prescribed fee and filed at least three days before the hearing.

    Crucially, the proviso imposes limits on adjournments:

    No party can be granted more than two adjournments, and each adjournment cannot exceed 30 days.

    • Rule 50 further provides consequences for non-appearance. If the applicant fails to appear on the adjourned hearing date, the application may be treated as abandoned; if the opponent fails to appear, the opposition may be dismissed for want of prosecution and the application may proceed toward registration, subject to Section 19.
    • The Registrar must also consider written arguments submitted by the parties and communicate the final decision in writing.

    Rajasthan HC: Rule 50 Shows Legislative Intent for Time-Bound Trademark Proceedings

    • The High Court interpreted the strict limits on adjournments under Rule 50 as reflecting a clear legislative intention.
    • Justice Sharma observed that the statutory restriction of a maximum of two adjournments, with each not exceeding 30 days, demonstrates that the Rules contemplate a complete and time-bound mechanism for expeditious disposal of trademark registration applications.
    • The Court held that the framework leaves β€œno room for unnecessary or avoidable delay.”
    • This observation is significant for applicants as well as opponents because prolonged pendency of trademark proceedings can create uncertainty regarding registration, enforcement and commercial exploitation of a mark.

    Registry: Petitioner Had Not Filed Rule 34 Application

    • The respondents opposed the writ petition.
    • They argued that a writ petition merely seeking expedition of pending proceedings was not maintainable in the form presented.
    • More importantly, they contended that Mittal Commerce Classes had not filed an application under Rule 34 of the Trade Marks Rules, 2017, and was therefore not entitled to seek the relief claimed before the High Court.
    • The High Court rejected this objection.

    Failure to File Rule 34 Application Cannot Be an Absolute Bar: Rajasthan HC

    Justice Sharma held that the petitioner’s failure to move a formal application seeking expedition under Rule 34 was merely a procedural omission and could not operate as an absolute bar against approaching the High Court for expeditious disposal of the trademark proceedings.

    The Court observed:

    β€œThe mere procedural omission of not having moved a formal application for expediting the proceedings under Rule 34 cannot operate as an absolute bar…”

    • Accordingly, the Registry’s procedural objection was rejected.
    • This aspect of the ruling is particularly relevant because it prevents procedural technicalities from becoming a justification for continued and excessive delay in deciding statutory applications.

    Excessive Delay in Trademark Proceedings Can Violate Natural Justice

    • The Rajasthan High Court relied upon an earlier decision of its Coordinate Bench in Mrs. Nirmala Kabra v. The Registrar of Trade Marks & Anr., S.B. Civil Writ Petition No. 18998/2022.
    • In that case, the Court had emphasised that excessive delays in deciding trademark registration applications undermine the very purpose for which such applications are filed.

    The judgment observed that prolonged proceedings can result in consequences including:

    • loss of evidence;
    • increased costs;
    • continuing uncertainty for businesses and litigants; and
    • erosion of public confidence in the fairness and efficiency of the statutory system.

    Most importantly, the Coordinate Bench had held that excessive delay in disposal of applications amounts to violation of principles of natural justice, because statutory procedures must be conducted fairly and within a reasonable timeframe.

    Speedy Disposal of Trademark Applications Protected Under Article 21

    • The most significant constitutional aspect of the ruling concerns Article 21 of the Constitution of India.
    • Quoting the earlier Nirmala Kabra decision, the Court reiterated that trademark registration applications cannot be allowed to remain pending for decades and that the Registrar of Trade Marks is not expected to keep such applications pending for an indefinite period.

    The earlier judgment had declared:

    β€œThe right of speedy and expeditious disposal of these applications is one of the most valuable and cherished rights of the applicant guaranteed under Article 21…”

    • Justice Sharma applied that principle to the case before him.
    • The Court then independently observed that the right to a speedy and expeditious hearing and timely disposal of statutory applications is an inalienable right of every litigant.
    • Such a valuable right, it held, cannot be curtailed or defeated on the altar of procedural technicalities.

    Eight-Year Pendency Considered Unacceptable

    • The factual timeline played an important role in the Court’s decision.
    • The trademark application had been pending since September 13, 2018, while the opposition had remained pending since May 4, 2020.

    The High Court recorded that this amounted to approximately:

    ProceedingDatePendency noted by Court
    Trademark Application No. 3944189September 13, 2018About 8 years
    Opposition No. 1043339May 4, 2020More than 6 years
    ClassClass 41Educational/coaching services
    Order of Rajasthan HCSeptember 14, 2026Writ allowed

    The Court concluded that such prolonged pendency justified issuance of a direction to the Registrar.

    Registrar Directed to Decide Trademark Application Preferably Within Four Months

    • The Rajasthan High Court ultimately allowed the writ petition.
    • It directed the Registrar of Trade Marks, Ahmedabad to make an endeavour to decide Trademark Application No. 3944189 together with Opposition No. 1043339 expeditiously and preferably within four months from receipt of a certified copy of the High Court’s order.
    • All other pending applications in the writ proceedings were consequently disposed of.
    • Importantly, the High Court did not decide whether the β€œMittal Commerce Classes” trademark should ultimately be registered or whether the opposition should succeed.
    • The judgment concerns the delay in adjudication and the petitioner’s right to obtain a timely decision. The merits of the trademark application and opposition remain for the Registrar to determine.

    Why the Judgment Is Important for Trademark Applicants and Opponents

    • The ruling has wider implications for parties facing long-pending proceedings before the Trade Marks Registry.
    • First, it reinforces that statutory trademark proceedings are expected to progress within a reasonable and time-bound framework, particularly once evidence has been completed and the matter has reached the hearing stage.
    • Second, the Court’s interpretation of Rule 50 emphasises that repeated adjournments cannot be used to indefinitely postpone adjudication. The Rules themselves cap both the number and duration of adjournments.
    • Third, the ruling indicates that failure to first file a procedural application seeking expedition under Rule 34 does not necessarily prevent a litigant from approaching the High Court where extraordinary delay has already occurred.
    • Finally, by connecting speedy disposal with Article 21 and principles of natural justice, the Rajasthan High Court has treated delay not merely as an administrative inconvenience but as an issue capable of affecting substantive procedural rights.

    Important Legal Distinction

    • The judgment should not be interpreted as granting Mittal Commerce Classes registration of its trademark.
    • The High Court has not adjudicated the merits of Trademark Application No. 3944189 or Opposition No. 1043339. It has instead directed the Registrar to bring the long-pending statutory proceedings to a timely conclusion.
    • The eventual question of whether the mark should be accepted or refusedβ€”and whether the opposition should succeedβ€”remains within the jurisdiction of the Trade Marks Registry.

    Key Takeaway

    The Rajasthan High Court has sent a clear message against indefinite pendency of trademark applications and opposition proceedings.

    Where an application filed in 2018 and an opposition filed in 2020 remained unresolved despite completion of the procedural stages, the Court held that procedural technicalities such as failure to file a Rule 34 application could not defeat the litigant’s right to seek timely adjudication.

    The Court’s reliance on Rule 50 of the Trade Marks Rules, 2017, principles of natural justice and Article 21 of the Constitution makes the decision particularly relevant to trademark applicants and opponents facing prolonged delays before the Registry.

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Rajasthan High Court Upholds Reduction of Redemption Fine and Penalty in Rough Marble Import

    Rajasthan High Court Upholds Reduction of Redemption Fine and Penalty in Rough Marble Import

    Date: 10.06.2026

    This article provides a comprehensive overview of the Rajasthan High Court’s decision in the customs appeals involving M/s R.K. Marble Pvt. Ltd. and the Commissioner of Customs, Jodhpur. The case centers on the importation and valuation of rough marble blocks, the application of licensing conditions, and the interpretation of policy circulars affecting import pricing.

    Background of the Case

    1. Parties Involved:
      • Appellant: Commissioner of Customs, Jodhpur (Jaipur Headquarters)
      • Respondent: M/s R.K. Marble Pvt. Ltd., Ajmer
    2. Nature of Dispute:
      • The dispute arose from the import of rough marble blocks (RMBs) of Turkish and other origins by R.K. Marble Pvt. Ltd. The customs authorities questioned the declared value of the imports and the compliance with licensing and policy conditions, particularly regarding the minimum floor price set by the Directorate General of Foreign Trade (DGFT).

    Key Legal Issues

    • Valuation of Imported Goods:
      • The customs department challenged the declared value of the marble blocks, arguing it was significantly lower than prevailing market rates at other major ports.
      • The Commissioner enhanced the assessable value based on market inquiries and the average price of similar goods, invoking Section 14 of the Customs Act, 1962 and the Customs Valuation Rules, 2007.
    • Compliance with DGFT Policy Circular:
      • The import license required adherence to a floor price of US $325 per metric ton (PMT) as per Policy Circular dated 30.6.2008.
      • An amendment on 31.10.2008 reduced the floor price to US $275 PMT, but the imports in question occurred before this amendment.
    • Penalties and Redemption Fine:
      • The customs authorities imposed penalties and redemption fines for alleged misdeclaration and violation of licensing conditions.

    Tribunal and High Court Findings

    Tribunal’s Observations

    • The tribunal noted that the import license was valid and issued under the policy requiring a $325 PMT floor price.
    • It acknowledged that international prices had fallen, leading to the subsequent reduction in the floor price.
    • The tribunal found no justification for enhancing the declared value based on average prices, especially when prices were declining globally.
    • It accepted the declared prices for assessment but recognized that these were below the required floor price, constituting a technical violation of policy.
    • Given the circumstances, the tribunal reduced the redemption fine and penalty.

    High Court’s Decision

    • The High Court agreed with the tribunal, emphasizing that the international price drop justified the lower declared values.
    • It found no reason to interfere with the tribunal’s decision to accept the declared prices and reduce penalties.
    • The appeals by the customs department were dismissed, and the issue was decided in favor of R.K. Marble Pvt. Ltd.

    Implications of the Judgment

    1. Valuation Principles:
      • The judgment reinforces that customs authorities must consider prevailing international market conditions when assessing the value of imported goods.
      • Arbitrary enhancement of value based on average prices, without accounting for market trends, is not justified.
    2. Policy Compliance:
      • Importers must adhere to licensing conditions, including floor prices, but mitigating circumstances such as global price drops can influence the severity of penalties.
    3. Precedent for Future Cases:
      • The decision sets a precedent for similar disputes involving valuation and licensing conditions, highlighting the importance of context and fairness in customs assessments.

    Conclusion

    The Rajasthan High Court’s ruling in favor of R.K. Marble Pvt. Ltd. underscores the need for customs authorities to balance regulatory compliance with market realities. The case demonstrates that while policy violations may occur, penalties should be proportionate and consider the broader economic context.

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