JAYESH NATWARLAL SHAH Vs. DEPUTY DIRECTOR ENFORCEMENT DIRECTORATE

JUDGEMENT

(1.) In this appeal under section 35 of the Foreign Exchange Management Act, 1999, (the Act) the appellant has challenged the order dated 26th July, 2007 made by the Appellate Tribunal for Foreign Exchange (the Tribunal) whereby the appeal has been dismissed.

(2.) The facts stated briefly are that by an order dated 26.10.1998 made by the Special Director, Enforcement Directorate, Mumbai, the appellant was found guilty of the contravention of the provisions of the Foreign Exchange Regulation Act (FERA) and penalty of Rs.7,50,0000/- was imposed on him and Indian currency of Rs.7,35,0000/- came to be confiscated. Being aggrieved the appellant had preferred an appeal before the Tribunal being Appeal No.98 of 1999. Vide order dated 06th January, 2006, the Tribunal after hearing the learned advocate for the appellant and after considering the facts and evidence and circumstances of the case found that there was no justification for waiver of pre-deposit of penalty and accordingly directed the appellant to pre-deposit the full amount of penalty within 30 days from the date of the said order failing which the appeal would be dismissed on the said ground alone. The appeals were fixed for hearing on 17th February, 2006.

(3.) Against the said order of the Tribunal, the appellant preferred a writ petition before this Court being Special Civil Application No.13762 of 2006. Vide order dated 13th March, 2007, the appellant was permitted to withdraw the petition with liberty to file a review application before the Tribunal to reconsider the aspect of hardship and to recall and review the order directing pre-deposit for hearing of the appeal. The appeal was thereafter taken up for hearing on 26th July, 2007. On that date, the learned advocate for the appellant prayed for time to enable him to file an application for review in terms of the order dated 13th March, 2007 passed by this Court. The Tribunal vide the impugned order turned down the request for adjournment and dismissed the appeal as the appellant had failed to make pre-deposit of penalty in compliance with the order dated 06th January, 2006 passed by the Tribunal.