2022 (8) TMI 151 - SCH - FEMA

Stay of recovery - whether any hearing can take place before the Tribunal qua the subject matters to be listed before the Tribunal even if these four members are appointed in the absence of the Chairman of the Tribunal. Learned ASG seeks some time to obtain instructions? - HELD THAT - We had earlier also posed a query to learned ASG and pose it again as to why we should not pass an order directing stay of recovery proceedings in all matters before the Tribunal as the judicial remedy is before the Tribunal and if the Tribunal is not being constituted to hear the matter, which is resulting in unnecessary expenses to the litigants to approach the High Court and burden on the High Court to deal with those matters. List on 02.08.2022.

Summary

Issues involved:
1. Stay application dismissed due to non-constitution of Tribunal for over three years.
2. Grievance of the petitioner resolved with the decision to notify Members.
3. Query on the possibility of hearings before Tribunal without Chairman.
4. Consideration of stay of recovery proceedings due to non-constitution of Tribunal.

Analysis:

1. The Supreme Court dismissed a stay application (IA No. 87842/2022) due to the Government's failure to constitute a Tribunal for over three years, forcing private parties to seek relief from the High Court. The Court expressed dissatisfaction with the situation, leading to the dismissal of the application.

2. The grievance of the petitioner in SLP [C] NO.7551/2022, previously addressed by the Telangana High Court, was reported as resolved. The Court was informed that the Appointments Committee of the Cabinet decided to notify the Members on a specific date, and the official notification of their appointment was imminent.

3. A query arose regarding the possibility of conducting hearings before the Tribunal in the absence of the Chairman. The Court sought clarification on whether proceedings could proceed with the appointment of four members, pending the appointment of the Chairman. The ASG requested time to seek instructions on this matter.

4. The Court deliberated on the need to issue an order to stay recovery proceedings in all matters before the Tribunal. The concern was raised due to the absence of the constituted Tribunal, leading to litigants resorting to the High Court, causing unnecessary expenses and burdening the High Court. The matter was adjourned for further consideration on 02.08.2022 to address this issue comprehensively.