2010 (5) TMI 953 - HC - Indian Laws

Summary

Issues involved: Ten revisional applications praying for quashing of proceedings pending before the Court of learned Metropolitan Magistrate, Calcutta.

CRR 1480 of 2005:
- The case involves allegations of contravention of Section 18(2) of FERA 1973 by accused persons, directors of a limited company, for failing to secure export proceeds within stipulated time.
- Adjudicating authority exonerated the petitioners in departmental proceedings, leading to the filing of revisional applications for quashing criminal proceedings.
- Petitioner's counsel argues that since the charges do not survive post exoneration, the criminal proceedings lack basis.
- Adjudicating authority observed that all export proceeds were regularized, and legal obligations were fulfilled by the company.
- RBI's approval of 'write off' for outstanding export value further supports the exoneration of petitioners.
- The court finds that the basis of the complaint under Section 56 of FERA does not exist due to steps taken by accused persons and RBI approvals, leading to quashing of proceedings.

CRR 1482 of 2005, CRR 296 of 2005, CRR 297 of 2005, CRR 298 of 2005, CRR 299 of 2005, CRR 300 of 2005, CRR 1253 of 2006, CRR 1254 of 2006, CRR 1256 of 2006:
- Similar to CRR 1480, these cases involve allegations of contravention of FERA provisions by accused persons.
- Petitioner's counsel argues for quashing of proceedings based on exoneration in departmental proceedings and identical factual scenarios in related cases.
- Adjudicating authority's observations on regularization of export proceeds and fulfillment of legal obligations by the company are cited in support of quashing criminal proceedings.
- RBI's approval of 'write off' for outstanding export value is highlighted as a key factor in exoneration of petitioners.
- The court finds that the accused persons have taken all reasonable steps for realization of amounts, leading to the quashing of proceedings in all related cases.

Conclusion:
- The High Court of Calcutta, under the judgment by Hon'ble Mr. Justice Kalidas Mukherjee, quashes the criminal proceedings in all ten revisional applications, citing the fulfillment of legal obligations by the company and RBI's approval of 'write off' for outstanding export values. Accused persons are discharged, and the revisional applications are allowed based on this judgment.