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Issues:
- Right to cross-examine witnesses in adjudication proceedings under the Foreign Exchange Regulation Act, 1973. - Applicability of Indian Evidence Act in adjudication proceedings. - Jurisdiction of the High Court in entertaining writ petitions against adjudication proceedings. Analysis: 1. Right to cross-examine witnesses: The petitioner sought a writ of mandamus to direct the Special Director, Enforcement Directorate, to permit him to cross-examine witnesses as requested in his reply to the show cause notice. The petitioner's contention relied on a previous decision asserting the right to appear in adjudication proceedings in person and adduce evidence, including cross-examination of witnesses. 2. Applicability of Indian Evidence Act: The respondent argued that under Rule 3(5) of the Foreign Exchange Regulation Rules, 1974, the petitioner cannot claim a right to cross-examine witnesses. The rule specifically states that the adjudicating officer is not bound by the provisions of the Indian Evidence Act during the proceedings. The respondent further pointed out the provision for appeal under Section 52(4) of the Act, suggesting that the petitioner should have pursued that route instead of filing a writ petition. 3. High Court's jurisdiction: The High Court examined the relevant rules and provisions, noting that the adjudicating officer must provide the petitioner with an opportunity to present relevant documents and evidence but is not obligated to allow cross-examination of witnesses. The court emphasized that the petitioner's request for cross-examination was not a right under the rules and that the appeal mechanism provided by the statute should have been utilized instead of approaching the High Court through a writ petition. 4. Precedent and natural justice: The judgment referenced a Supreme Court decision emphasizing that natural justice does not mandate the examination or cross-examination of persons providing information in adjudication proceedings. The court highlighted that the petitioner had been served with the necessary documents and show cause notice, and his request for cross-examination was deemed unnecessary and unwarranted, potentially delaying the resolution of the case. 5. Dismissal of the writ petition: Ultimately, the High Court found no merit in the petitioner's request for cross-examination of witnesses, citing the statutory provisions and rules governing the adjudication proceedings. The court dismissed the writ petition, emphasizing that the Authority must conduct proceedings as per the prescribed rules, and the petitioner's approach was deemed inappropriate and unnecessary. Consequently, the adjudication proceedings were stayed for several years due to the petition, which was considered devoid of merits and dismissed with no costs.
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