SULAIHAR Vs. ENFORCEMENT DIRECTORATE, CHENNAI

JUDGEMENT

(1.) A sum of Rs.32,371/- was paid to the Petitioner on 16.03.2000 as the rupee equivalent of UK Pounds 1800, which was seized from the Petitioner's house on 16.08.1974. The present writ petition is filed for a direction to the Respondents to pay interest on Rs.32,371/- at 15% per annum from the date of seizure (16.08.1974) till the date of payment of the rupee value thereof (16.03.2000) or, in the alternative, to pay a sum of Rs.94,259/-, which is the rupee equivalent of UK Pounds 1800 as on 16.03.2000 after setting-off the sum of Rs.32,371/- which was paid on 16.03.2000.

(2.) On 16.08.1974, the officers of the Enforcement Directorate seized travellers cheques for UK Pounds 2000 from the Petitioner. The Petitioner and his wife gave a statement to the effect that they had returned from Penang, Malaysia on 10.06.1974 and had brought travellers cheque for UK Pounds 2000 which had been duly declared to the Customs Authority of arrival. They also stated that the original travellers cheques were lost and subsequently replaced by the foreign exchange dealer, Thomas Cook, by issuing travellers cheques in lieu. Pursuant to the said seizure, a show cause notice was issued and the adjudication order dated 05.05.1997 was pronounced imposing a penalty of Rs.3000/- in addition to the confiscation. The Petitioner carried the matter in appeal before the Foreign Exchange Regulation Appellate Board (the Appellate Board). By order dated 14.02.1980, in Appeal No.863 of 1977, the Appellate Board confirmed the order of confiscation of UK Pounds 2000 but reduced the penalty to Rs.1000/-.

(3.) The order of the Appellate Board was challenged in C.M.A.No.82 of 1992 before this Court. By order dated 26.11.1999, this Court upheld the confiscation of UK Pounds 200 but set aside the order of the Appellate Board as regards the confiscation of UK Pounds 1800 on the ground that the substitute travellers cheques were issued to the Petitioner on 23.07.1974 and, consequently, she had time till 23.08.1974 (30 days), as per the provisions of the Foreign Exchange Regulation Act, 1973(FERA) to make the requisite declaration. Consequently, the seizure on 16.08.1974 was held to be contrary to the provisions of FERA. On that basis, the Enforcement Directorate was directed to refund the value of 1800 pounds. The said sum was refunded on 16.03.2000. However, no interest was paid on the sum of Rs.32,371/-, which represents the principal value of UK Pounds 1800 as on the date of seizure. The present writ petition was filed in the said facts and circumstances for the relief mentioned supra.