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2017 (8) TMI 1723 - PUNJAB AND HARYANA HIGH COURTViolation of Section 50 of the Foreign Exchange Regulation Act - Condition of pre-deposit of 10% of the penalty amount imposed for hearing of the appeal - HELD THAT:- We are not opining finally on the merit of the controversy as the issue is pending before the Tribunal. There is prima facie, merit in the case set up by the petitioner. There is a certificate produced from the Chartered Accountants of the writ petition certifying that the petitioner had never been the director of the company, namely, M/s Sachdeva & Sons Industries (P) Limited. Petitioner was a director in M/s Sachdeva & Sons Rice Mills Limited, a separate legal entity, which was a partner in firm M/s Sachdeva & Sons Industries. On dissolution of M/s Sachdeva & Sons Industries, partnership firm on 5.5.1997, M/s Sachdeva & Sons Industries (P) Limited, came into existence, which took over the business of M/s Sachdeva & Sons Industries, but the petitioner was not inducted as director in the newly incorporated company. There is nothing on record to suggest otherwise. Once, prima facie, on the basis of material produced on record before this Court, it is found that the petitioner was not the director in the company, namely, M/s Sachdeva & Sons Industries (P) Limited, directing her to deposit part of penalty as precondition for hearing of her appeal on merits will certainly cause undue hardship to her. Hence, in our view, the condition of pre-deposit of 10% of the penalty amount imposed on her for hearing of the appeal filed by her and pending before the Tribunal deserves to be set aside.
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