9911796707
TMI Blog2024 (7) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... n Act, 1973, makes it clear that in all other cases, such proceeds shall be paid to such person as may appear to other cases, such proceeds shall be paid to such person as may appear to the officer or the Court, who or which made the direction under subsection (1) to be entitled thereto in such currency and in such manner as he or it deems just together with interest at the rate of six per cent. per annum from the date on which such draft, cheque (including traveller's cheque) or other instrument came into his or its custody till the date of payment. By confiscating the amount, the respondents have made no favour to the petitioner. By returning the amount belatedly pursuant to the directions of this Court, the respondents have done no f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003, by considering the petitioner's representation dated 10.07.2018. 2. The petitioner was aged about 65 years at the time of filing of this Writ Petition. A sum of Rs. 9,00,000/- in cash was recovered from the petitioner on 02.07.1997 pursuant to the search conducted under Section 37 of the Foreign Exchange Regulation Act, 1973 by Enforcement Directorate, Madurai. Pursuant to the aforesaid search, a notice was issued to the petitioner which culminated in the Adjudication Order No.SDE(SSB)IV/19 20/2003 dated 29.08.2003 passed by Special Director, Enforcement Directorate, New Delhi. 3. By the aforesaid Adjudication Order dated 29.08.2003, the Special Director, Enforcement Directorate, New Delhi imposed penalty of Rs. 10,00,000/- on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e till the date of payment. 7. It is submitted that as per Sub-Rule (ii) to Rule 8 of the Rules, during the course of adjudication, if it is found that the seized Indian currency is not relevant for such adjudication, the Adjudication Authority may pass order for return of such Indian currency together with interest at the rate of 6% per annum to such person. 8. The learned counsel for the petitioner would submit that although the aforesaid Rules has been framed under Section 46 of the Foreign Exchange Management Act, 1999 with effect from 01.06.2000, there was no embargo to pay the interest in terms of Section 42(3) of the Foreign Exchange Regulation Act, 1973 which reads as under:- Section 42 Encashment of cheque, draft, etc. (1) .... (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the petitioner is entitled for interest at bank rates that prevailed during the period or alteast 6% per annum as is recognized under Rule 8(i) of the Foreign Exchange Management (Encashment of Draft, Cheque, Instrument and Payment of Interest), Rules, 2000. 10. The learned counsel for the petitioner has placed reliance on the decision of the Bombay High Court in M/s.R.K.Jewellers and another Vs. Union of India and others , dated 04.05.2010, in W.P.No.2777 of 2003. 11. The learned counsel for the respondents, on the other hand, would submit that the order of the Appellate Tribunal in A.No.397 of 2003 dated 19.10.2016 has not directed payment of interest. It is submitted that Section 53 of the Foreign Exchange Regulation Act, 1973, gives t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nationalised banks in relation to commercial transactions. Explanation I:- In this sub-section, nationalised bank means a corresponding new bank as defined in the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 (5 of 1970). Explanation II:-For the purposes of this section, a transaction is a commercial transaction, if it is connected with the industry, trade or business of the party incurring the liability. (2) Where such a decree is silent with respect to the payment of further interest on such principal sum from the date of the decree to the date of payment or other earlier date, the Court shall be deemed to have refused such interest, and a separate suit therefore shall not lie. 13. I have considered the arguments a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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