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TMI Blog1987 (4) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... Sethi. The remaining amount of Rs. 56,500 was paid to one Shri B. B. Sawhney, general attorney of Shri O. P. Sethi. Thereafter, the sale deed was duly registered and possession delivered. Somehow or other, the officers of the Foreign Exchange Enforcement Branch came to know of this transaction. On enquiry, the Department came to know that at the relevant time, Shri O.P. Sethi was a person resident outside India and as such had no authority to accept the sale consideration without the prior approval of the concerned authorities. On the basis of the investigations of the Directorate, Shri Issar Das was served with the. following show-cause notices : "1. Show-cause Notice No. T-4/127-D/83-DD, dated November 8, 1983, alleging that during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a person resident outside India. As Shri B. B. Sawhney was competent to enter into the sale agreement, for and on behalf of Shri O.P. Sethi, the transaction was completed and payments made. This defence was not accepted. The learned Deputy Director, vide order dated April 30, 1984, concluded: "The contention of the learned advocate that Shri Issar Das did not know that Shri O. P. Sethi was a person resident outside India nor he made enquiry regarding Shri Sethi for the reason that Shri Sawhney was the holder of a power of attorney, is not acceptable as Shri Issar Das was a tenant of the same house owned by Shri O. P. Sethi since October, 1978. This house was subsequently purchased by him which is the subject-matter of adjudication. Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Shri Issar Das was not satisfied with the order of the Deputy Director and preferred to file an appeal which was heard and disposed of by the Appellate Board, on August 28, 1985. On the same facts, the Appellate Board came to the conclusion that on record there is nothing to suggest that Shri Issas Das told a lie in his statement. The Board concluded thus : "The A. O. in his order has based his finding in respect of such knowledge of the appellant on the mere circumstance that the appellant was a tenant in the house for the last about two years and that the rent receipts were being given to him by O P. Sethi s son and the family of O. P. Sethi was residing in a portion of the house and vacated the same some time in January, 1980, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent to the effect that he did not know the whereabouts of Shri O.P. Sethi. It was for him to discharge the burden to prove not only that he had no knowledge that Shri O.P. Sethi was a nonresident but also that he had no reason to believe this fact. On this short ground, the appeal, according to learned counsel, is liable to be accepted. Learned counsel for the respondent has raised two preliminary objections to the maintainability of the present appeal. In this behalf, he has placed reliance on the provisions of section 54 of the Act, which reads as under : "54. Appeal to High Court. An appeal shall lie to the High Court only on questions of law from any decision or order of the Appellate Board under sub-section (3) or sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant, the High Court was closed from November 9, 1985, to November 13, 1985. The present appeal was filed in the registry on November 14, 1985. In that situation, the appeal cannot be said to have been filed beyond the period of limitation. This objection thus has no merit. On the second aspect, the respondent has a valid and forcible submission. The main question for decision before the Deputy Director and the Appellate Board was as to whether Shri Issar Das, at the time of the purchase of the house or when he made the payment, had the actual knowledge that Shri O.P. Sethi was a resident outside India. On the same set of evidence, the authorities below have adopted divergent views. This is a pure question of fact. No question of law ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on or opportunity to know this fact. First of all, Shri Issar Das is an illiterate person and not well-versed in English. On the suggestion of one Mr. Sehgal, he agreed to purchase the property and contacted Shri B. B. Sawhney who was holding a valid and legal power of attorney from Shri O. P. Sethi to execute the sale deed. The entire sale consideration was paid by the respondents in two instalments. The sum of Rs. 75,000 was paid by means of a bank draft and the same was deposited in the joint account of Shri O. P. Sethi and his wife. The second instalment of Rs. 56,500 was paid to the attorney. The major portion of the entire consideration was spent by the family of Shri O.P. Sethi in India. It was not expected of the respondent to find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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