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TMI Blog2008 (8) TMI 1039X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor of said company for the reason of failure to realize and repatriate outstanding export products in contravention of section 18(2) and 18(3) r/w section 68 of FER Act, 1973. This tribunal vide order dated 29.7.04 after hearing argument directed the appellant to deposit the penalty amount within 60 days. It is stated (Sic) the Bar that the said order has been complied with though belatedly. Heard Shri Amit Prasad, Ld. advocate appearing for appellant and Dr. Shamsuddin, DLA for the respondent. 3. The main crux of argument of Shri Amit Prasad, Ld. advocate is that at the relevant time, the appellant was neither director nor in charge of affairs of noticee company relating to export of garments. Referring to the provisions of section 5 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the noticee for day to day business of the noticee company at the relevant period. It is contended that the said position has been upheld in the impugned order where after the contention of the appellant cannot sustain. 5. In the instant case the appellant is charge with vicarious liability for failure of noticee company to realize and repatriate the export proceeds to the tune of Rs. 3,70,96,026.28 during the year 1995 to 196. It is the contention of appellant that he was appointed as an additional director on 1.1.97 and resigned from such post on 6.4.98. Further it is contended that one Vinay Bagla who was chairman and MD of noticee company was looking after the entire export affairs pertaining to the noticee company in UK and who was als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l aspect. Section 68 of FER Act while dealing with vicarious liability provides that where a person committing the contravention under the Act is a company every person who at the time of contravention committed, was in charge of, and was responsible to the company for conduct of its business shall be deemed to be guilty of contravention. 7. The relevant portion of section 68 is read as under : 68. Offences by companies - (1) Where a person committing a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time of the contravention was committed, was in charge of, and was responsible to the company for the conduct of business of the company as well as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss underlying objects of the two statute are in pari mateira. The decision interpreting various provisions of one statute will not have the binding force while interpreting the provisions of another statute. 9. As regards the contention that appellant could not be penalized in absence of any material showing he was responsible for the conduct of the noticee company, it is seen that the SCN clearly spell out that during the relevant period he was one of the persons in charge of and responsible to the said noticee company for its day to day businesses. 10. In SMS Pharmaceuticals Ltd. v. Neeta Bhalla JT 2005 (8) SC 450 the Hon'ble Supreme Court while considering vicarious liability of the officers of the corporate bodies for the act done i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d charges of vicarious liability. It is also not controverted that during the relevant period the appellant was in charge of noticee company's International Trading Division concerning export of various products to European market as is evident from the letter dated 2.4.1988. In such a situation and in absence of any material contrary brought on record the impugned order cannot be faulted with. Rather it is to be maintained of sustained. 13. Turning towards the question of quantum of penalty it is seen that same is neither excessive not harsh in comparison to the amount involved in contravention. The same does not require any interference of this tribunal. This appeal is therefore liable to be dismissed. 14. For the reasons stated herei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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