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Issues:
Consolidated penalty imposition without specific amounts against multiple parties under FERA, 1973. Analysis: The appeals were filed against an adjudication order imposing a consolidated penalty of Rs. 1,50,000 on an appellant-company and its two directors for contravention of FERA, 1973. The appellants were allowed to deposit 20% of the penalty amount as per the Tribunal's order. The adjudication proceeding was initiated by a show-cause notice, and the penalty was imposed jointly and severally on the appellants. However, the advocate for the appellant argued that a consolidated penalty without specific amounts cannot be imposed. The Tribunal agreed with this argument, stating that when more than one person is liable to penalty jointly and severally, each person must have a specific fine imposed. As a result, the order imposing the consolidated penalty was deemed unsustainable and illegal. The order was set aside, and the matter was remanded back to the adjudicating authority to reconsider the penalty after hearing the appellants. The respondent was directed to refund the pre-deposit amount to the appellants within 45 days. In conclusion, the Tribunal found the imposition of a consolidated penalty without specific amounts against multiple parties to be impermissible under the law. The order was set aside, and the matter was remanded for reconsideration of the penalty. The Tribunal emphasized the necessity of imposing specific fines on each accused when more than one person is liable for a joint offense. The respondent was directed to refund the pre-deposit amount to the appellants within a specified timeframe.
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