Date:26/12/2003 URL: http://www.thehindu.com/2003/12/26/stories/2003122601281300.htm

National

`Informers cannot claim reward as a matter of right'

By Our Legal Correspondent

New Delhi Dec. 25. The Supreme Court has held that payment of reward to informers could be granted on the absolute discretion of the competent authority and no one could claim a reward as a matter of right.

A Bench of Justice S. Rajendra Babu and Justice G.P. Mathur gave this ruling while allowing an appeal filed by the Union Government challenging an order of the Madras High Court directing the Centre to pay Rs. 10 lakhs to an informer in addition to Rs. 10 lakhs already paid.

The Bench said that under the scheme the reward being an ex-gratia payment was subject to the guidelines of the Government and the competent authority while sanctioning the reward should take into consideration factors such as specificity and accuracy of the information, the risk and trouble undertaken and the extent and nature of the help rendered by the informer.

Further, the Bench said that whether information gave clues of the persons involved in smuggling or their associates, the difficulty in securing such information, the risk involved for the Government servants working out the case and whether apart from seizure of contraband goods, the owners/organisers/financiers/racketeers had been apprehended should also be taken into consideration.

In this case, one C. Krishna Reddy furnished certain information regarding evasion of customs duty by a company and based on the information the department initiated proceedings for recovery of the duty evaded.

The grievance of Mr. Reddy was that he was paid Rs. 10 lakhs by way of reward as against his entitlement of Rs. 1,71,43,272. On a writ petition filed by him, a single judge of the High Court directed the authorities to pay Rs. 25 lakhs to the petitioner in addition to Rs. 10 lakhs already paid.

On appeal by the Centre, a Division Bench reduced the amount to Rs. 10 lakhs to be paid in six weeks failing which the order of the single judge would be restored.

The present special leave petition by the Centre was directed against this judgment.

Allowing the appeal, the apex court Bench accepted the Centre's contention that an informer was not entitled to claim the reward as a matter of right since the guidelines did not have the force of law.

The Bench also agreed that the reward could be granted only after the issue had been finally adjudicated and the amount realised from the one who violated the law.

The Bench observed that the High Court in writ jurisdiction could not examine or weigh the various factors, which had to be taken into consideration while deciding a claim regarding grant of reward.

These were matters exclusively within the domain of the authorities of the department as they alone could weigh and examine the usefulness or otherwise of the information given by the informer.

The Bench reminded the High Courts that for issuing a mandamus under the writ jurisdiction to compel the authorities to do something, it must be shown that there was a statute, which imposed a legal duty, and the aggrieved party had a legal right under the statute to enforce its performance.

"We are clearly of the opinion that the orders passed by the High Court are not only wholly unwarranted but are also without any legal basis and are consequently liable to be set aside."