K K AGARWAL Vs. ENFORCEMENT DIRECTORATE

JUDGEMENT

(1.) BY way of this writ petition filed by the petitioners under section 482 Cr. P. C. , the petitioners seek setting aside of the summoning order dated 30/5/2002 passed by the learned trial court in complaint case no. 934/1/2002, wherein the learned trial court took cognizance on a complaint for alleged contravention of Sections 8 (1), and (2) r/w S. 49 of Foreign Exchange regulation Act, 1973.

(2.) THE short question which arises for consideration before this court is that as to whether after the order passed in the adjudication proceedings initiated by the Enforcement Directorate for contravention of the provisions of Sections 8 (1) 8 (2) , 49, 7 (1), 7 (3), and 7 (4) of the FERA, 1973 which resulted in complete exoneration of the petitioners, can the complaint filed by the Enforcement Directorate under Section 56 of the Foreign exchange Regulation, Act, 1973 complaining violation of Section 49 (3) AND (4)18 (2) r/w Section 18 (3) of FERA 1973 sustain against the petitioners.

(3.) THE facts which are not in dispute are that adjudication proceedings were initiated against the petitioners along with other noticees for contravention of the provisions of Section 8 (1) and (2) r/w Sections 49 , 7 (1), 7 (3) and 7 (4) of the FERA 1973 for illegal transfer of foreign exchange as referred in the order of the Adjudicatory Authority. Proceedings against the present petitioners were initiated on the ground that they were also Directors in M/s Sunrise Securities Ltd. and in the vicarious liability of the said company the charges were extended to the petitioners as well. These petitioners claim their complete exoneration and absolvement in the adjudication proceedings mainly on the ground that they had already resigned from the Directorship of M/s sunrise Securities Ltd. and claimed that no act of violation could be attributed to them for any violation or contravention made by M/s Sunrise Securities Ltd to the various provisions of FERA while the other directors were liable being responsible for the conduct and affairs of the company. The adjudicatory authority vide its order dated 24. 11. 2004 came to the conclusion that all the charges against the company as well as its Chairman and Director of M/s Sunrise securities Ltd. are proved but nothing adverse was noticed against the present petitioners i. e. S. /shri K. K. Aggarwal and Mr. M. C. Maloo. Para 40 of the Order of the Adjudicatory Authority is referred as under:-