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Issues:
Appeal arising from Adjudication Order imposing penalties for violation of section 15 of the Foreign Exchange Regulation Act, 1973. Request for adjournment and change of hearing location. Opposing counsel's argument against adjournment. Consideration of contravention admission and lack of mala fide intention. Examination of Section 15 empowering Central Government for foreign currency payments. Misunderstanding of legal requirements by appellants. Reduction of penalty for lack of knowledge. Analysis of penalties imposed on appellant manager and partner. Legal requirements for penalizing individuals. Analysis: The appeals stemmed from an Adjudication Order penalizing the appellants for breaching section 15 of the Foreign Exchange Regulation Act, 1973. The appellants sought an adjournment and requested a change of hearing location due to financial constraints, which was opposed by the respondent's counsel. The respondent argued against an adjournment, highlighting the urgency of the matter and the lack of necessity for ad interim orders. The respondent emphasized that the contravention admission by the appellants did not absolve them of liability, as mala fide intention was not a prerequisite for contravention under the Act. The Tribunal considered the provisions of Section 15, which empower the Central Government to direct foreign currency payments, emphasizing the requirement for non-residents to discharge specific liabilities in foreign currency while in India. The Tribunal noted that the appellants had a mistaken understanding of the legal requirements, leading to inadvertent contravention. Despite the contravention, the Tribunal acknowledged the appellants' cooperation and lack of mala fide intention, leading to a reduction in the penalty imposed on the appellant firm. Regarding the penalties imposed on the appellant manager and partner, the Tribunal scrutinized the legal basis for penalizing individuals under the Act. In the case of the appellant manager, the Tribunal found a lack of evidence indicating consent to the contravention, leading to the setting aside of the penalty. Similarly, in the case of the appellant partner, the Tribunal considered the lack of necessary knowledge and the circumstances of the contravention, resulting in the overturning of the penalty. Ultimately, the Tribunal allowed the appeals in part and modified the penalties imposed, taking into account the appellants' inadvertent contravention, lack of mala fide intention, and cooperation with the authorities. The judgment underscored the importance of promoting honest compliance and considering individual circumstances in determining penalties under the Foreign Exchange Regulation Act, 1973.
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