9911796707
TMI Blog1995 (7) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany, exported agricultural equipment worth Rs. 1,92,002.66 and Rs. 1,00,845 to Bacha Inc. Sanfransico California, a subsidiary of the first respondent. The Reserve Bank of India, vide its letters dated June 27, 1983; and August 21, 1984, intimated the Directorate of Enforcement that the exporter had failed to realise the export proceeds. Pursuant to the investigation, it was revealed that non-realisation of the export proceeds was to the tune of U. S. dollars 1,81,897.68 and 97,886.00. On February 23, 1988, a notice was issued by the Director, Enforcement Directorate, to the first respondent and its partners, respondent No. 2 and Mrs. Iqbal Kau'r Chadha, requiring them to show cause why adjudication proceedings as contemplated by section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount. In the application, it was, inter alia, pleaded that the deposit of the penalty amount would cause hardship to them as they had been suffering losses in business and were not in a position to deposit the penalty amount. This application came to be decided by the Foreign Exchange Regulation Appellate Board on August 17, 1993. According to the order of the Board, the first and the second respondents were required to deposit a sum of Rs. 1,75,000 each within sixty days as a condition precedent for hearing of the appeal. Not able to, deposit the said amount within the time granted by the Board, they moved an application, on November 8, 1993, for extension of time and for permitting them/to make the payment in instalments. This applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the order as a condition precedent for hearing of the appeal. He pointed out that despite the fact that they had violated the order the Board by its subsequent orders dated December 6, 1993, and March 28, 1994, not only extended the time for making the deposit but also substantiay reduced the amount originally directed to be deposited as condition for hearing the appeal. Learned counsel for the first two respondent however, submitted that the Board, while passing the subsequent order did not re-examine or review the correctness of its earlier order. According to him the order of the Board dated August 17, 1993, relating to the pre-deposit of the penalty amount was -in the nature of an interim of interlocutory order and since such orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Provided further that where the Appellate Board is of opinion that the deposit to be made will cause undue hardship to the appellant, it may, in its own discretion, dispense with such a deposit either unconditionally or subject to such conditions as it may deem fit. (3) On receipt of an appeal under sub-section (2), the Appellate Board may, after making such further inquiry as it deems fit, confirm, modify or set aside the order appealed against and the decision of the Appellate Board shall, subject to the provisions of section 54, be final and if the sum. deposited by way of penalty under sub-section (2) exceeds the amount directed to be paid by the Appellate Board,: the excess amount shall be refunded. (4) The Appellate Board may, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Board dispensing with the pre-deposit either unconditionally or subject to certain conditions is not a decision on the merits of the case. Such an order is passed to prevent hardship and to advance justice so that the appellant does not lose his right of appeal for failing to deposit the penalty amount due to reasons beyond his control. For good and valid reasons, the Board can pass orders which have the effect of modifying or altering the interlocutory order relating to the pre-deposit of the penalty amount. If held otherwise, the Board will not be able to pass appropriate orders in a case where such orders are required to be passed having regard to the circumstances of the case and/or the supervening events, which may have a crippli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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