OVERSEAS TEXTILES CORPORATION Vs. SPECIAL DIRECTOR

JUDGEMENT

(1.) THESE appeals filed by the appellants under section 35 of the Foreign Exchange Management Act, 2000 (hereinafter referred to as "FEMA") read with section 54 of the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as "FERA") are directed against the order of the Appellate Tribunal for Foreign Exchange (hereinafter referred to as "Tribunal") dated 30th April, 2009.

(2.) ALL these appeals arise out of common order passed by the Tribunal and were therefore heard together and being disposed of by a common order. Appeal No. 57 of 2009 is filed by M/s. Overseas Textiles Corporation (hereinafter referred to as "Firm") and Appeal Nos. 56 of 2009, 58 of 2009, 59 of 2009, 60 of 2009 and 61 of 2009 are filed by the partners of the said firm. For the sake of convenience, facts in Appeal No. 57 of 2009 are discussed in this order.

(3.) ON 19th January, 1994 the Firm lodged its claim with the Insolvency Liquidator. ON 22nd March, 1994 the Firm filed an application with the Judicial Administrator, District Court, Germany making its claim. Between the year 1994 and 1996, there was further correspondence exchanged between the Reserve Bank of India, Bank of Baroda and the firm. The firm submitted various documents from time to time to the Reserve Bank of India as well as Bank of Baroda as requisitioned by the bank in respect of the permission sought by the firm for writing off of the amount of unpaid bills. ON 14 th March, 1996, the Reserve Bank of India informed the Bank of Baroda that as the ECGC had not settled the claim of the firm, the Bank of Baroda should approach the RBI for writing off after ECGC takes final decision in the matter. ON 29 th March, 1996 the firm informed the RBI that the ECGC had partially settled its claim of Rs.29,85,835/- and the said amount had been credited to their PSDL account with Bank of Baroda in settlement of outstanding bills. The firm forwarded details of the cheque received from ECGC and once again requested for permission to write off the amount of unpaid bills. ON 14th June, 1996 the RBI informed the firm that its case was under consideration of RBI and requested to await.