R SIVARAJAN Vs. DEPUTY DIRECTOR ENFORCEMENT DIRECTORATE

JUDGEMENT

(1.) THESE three writ petitions have been filed for the issue of a writ of mandamus directing the respondents to return the money seized from them by the officers of the respondents. The point raised in all these cases is that the proceedings under section 51 of the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as "the Act"), had not been initiated within a period of one year from the date of seizure, that, therefore, the Revenue have no authority to retain the money and that they have to return the same and drop all further proceedings. In W. P. No. 11605 of 1985, the date of seizure of the currency was on October 14, 1984. The notice under section 3(1) of the Act dated October 4, 1985, is said to have been despatched on October 7, 1985, by registered post acknowledgment due, but the same was actually received by the petitioner only on October 19, 1985. In W. P. No. 11605 of 1985, the seizure of the currency was on October 12, 1984. The notice dated October 4, 1985, is said to have been sent by registered post on October 7, 1985, but the same was received by the petitioner on October 17, 1985. In W. P. No. 11606 of 1985, the seizure of the currency was on October 12, 1984. The notice dated October 4, 1985, was sent on October 7, 1985, which was received by the petitioner on October 18, 1985.

(2.) SECTIONS 41, 50 and 51 of the Act, which are the relevant provisions for consideration of the point raised in these cases, run as follows :

(3.) THERE is no dispute that the term" documents" * in section 41 includes currency notes. As may be seen from section 41, where the enforcement officer has reason to believe that the currency would be evidence of contravention of any of the provisions of the Act or any of the rules, directions or orders made thereunder, it would be necessary to retain the same in his custody and he may so retain the said currency for a period not exceeding one year from the date of such seizure. Section 41 further states that if before the expiry of the said period of one year from the date of seizure any proceedings under section 51 have been commenced, he can retain the same until the disposal of those proceedings. Section 51 provides the necessity for holding an inquiry and coming to a finding that the person has committed a contravention of the provisions of the Act or the rules made thereunder. Section 50 provides the penalty when such adjudicating officer is satisfied that the person has committed the contravention. Section 41, in the circumstances, provides that if the adjudicating officer had commenced an enquiry in the prescribed manner under section 51, then he can hold the currency until the disposal of those proceedings under section 51, including the proceedings, if any, before the appellate board or the High Court. Rule 3 of the Adjudication Proceedings and Appeal Rules, 1974, prescribes the procedure for an adjudication under section 51 and that reads as follows :