1980 (8) TMI 203 - HC - Indian Laws

Summary

Issues involved: Appeal filed by Director of Enforcement against order of Foreign Exchange Regulation Appellate Board, maintainability of appeal by Director of Enforcement.

Issue 1: Appeal filed by Director of Enforcement
The appeal was filed by the Director of Enforcement against the order of the Foreign Exchange Regulation Appellate Board, which set aside the order of adjudication holding the respondents guilty of contravention of Section 4(1) of the Foreign Exchange Regulation Act, 1947, and imposing a personal penalty. The respondents raised a preliminary objection regarding the maintainability of the appeal by the Director of Enforcement, contending that only the Central Government can be considered aggrieved under the Act for filing an appeal to the High Court. The Director of Enforcement sought to amend the cause title in the memorandum of appeal to substitute the name of the appellant as the Government of India, but this was dismissed as the Director of Enforcement cannot be equated with the Government of India.

Issue 2: Maintainability of appeal by Director of Enforcement
The Explanation to Section 54 of the Foreign Exchange Regulation Act 1973 specifies that only the Central Government can be an aggrieved party for filing an appeal against the order of the Appellate Board. The Director of Enforcement, as the initial authority passing the adjudication order, cannot be considered aggrieved simply because the Appellate Board set aside the order. It was emphasized that a quasi-judicial Tribunal like the Director of Enforcement cannot have a grievance when a higher appellate forum reverses its decision, as it would imply bias. Without statutory authorization for the Director of Enforcement to file an appeal, the appeal was deemed not maintainable. The court dismissed the appeal, stating that it was without prejudice to the right of the Government of India to file an appeal if advised to do so.

In conclusion, the appeal filed by the Director of Enforcement was dismissed as not maintainable due to lack of statutory authorization and the specific provision in the Foreign Exchange Regulation Act regarding aggrieved parties for filing appeals.