SARATHAS Vs. ASSISTANT DIRECTOR, ENFORCEMENT DIRECTORATE

JUDGEMENT

(1.) This appeal arises out of confirmation of penalty imposed during adjudication proceedings.

(2.) (a) One V. Vaithialingam, it is said, had contravened the provisions of Sections 9(1)(b) and 9(1)(a) of the Foreign Exchange Regulation Act, 1973 (Act 46 of 1973--for short "FERA"), in having received Rs. 6,567.48, otherwise than through an authorised dealer in foreign exchange by order or on behalf of one V. Subramanian of Ceylon and in having made a payment of Rs. 10,000 to one P. Shanmugham Pillai of Malaysia respectively. Show-cause notices of even date, namely, 28.2.1981 were issued to him.

(3.) The said V. Vaithialingam and S. Sivalingam, however, appeared on 23.3.1981 and admitted the charges levelled against them and pleaded ignorance of law, as an excuse for their actions. The case was posted for hearing on 24.4.1981. But none appeared then. The case was subsequently posted for hearing on 21.5.1981. On that day, one T.V. Natarajan, Advocate appeared and requested for a short adjournment to produce an attested copy of the ledger accounts and as such, the case was posed for personal hearing on 1.6.1981. Accordingly, the said advocate appeared and filed a copy dated 22.5.1981 of the account of V. Subramania Pillai with the Saratha's, NSB Road, Trichy and pleaded that his client was under the bona fide belief that the said Subramania Pillai was a resident of India and the proceedings may therefore be dropped.