OM VIR SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) The present petition under Article 226 is for the relief of quashing the order-in-original dated 15.07.2009 passed by the Deputy Director, Foreign Trade and order-in-appeal dated 07.10.2010 passed by the Additional Director General of Foreign Trade on the ground that the penalty is sought to be imposed when there is no charge in the show cause notice or imposing the penalty.

(2.) Facts in brief necessary for the disposal of this petition are as under:

(3.) Learned senior advocate Mr. Parikh in support of the challenge contends that the authorities had travelled beyond the scope of the show cause notice as in the show cause notice, the only power sought to be invoked were under Section 8(1)(a) (b) of the Foreign Trade Development and Regulation Act, [FTDR Act for short] and the noticees were not even called upon to show cause against the imposition of personal penalty in the show-cause notice. He also contended that so far as the petitioners are concerned, there were no allegations or proposals for the imposition of penalty at all. He contended that the orders passed are in violation of principles of natural justice in as much as Section 14 of the FTDR provides for issuance of notice prior to imposition of penalty and the provisions require that the grounds on which penalty is to be imposed be conveyed to the person. He also contended that no charge of any abatement or knowledge of any deliberate contravention has been made against any of the directors and therefore, in absence of such allegation the proposal of levy of penalty on the directors is unfounded.