BHAGWANDAS S TOLANI Vs. B C AGGARWAL

JUDGEMENT

(1.) A very short point is involved in this petition. It would appear that on 2nd August, 1966, the firm known as Eastern Machinery and Trading Co. of which firm the petitioner is today the sole proprietor was issued a show cause notice in respect of alleged violation of Foreign Exchange Regulation Act, 1973. It is the agreed position that in respect of the said show cause notice, cause was shown by the firm by its reply dated 9th August, 1966.

(2.) The show cause notice has been issued by the Director of Enforcement from its Head Quarters at New Delhi. According to the petitioner, the Director of Enforcement, New Delhi, called the firm and its representatives for a hearing in connection with the show cause notice. According to the petitioner, the hearing was attended by the petitioner's representative including the petitioner's partner and one of India's senior and leading counsel. According to the petitioner, the hearing lasted for over one day.

(3.) It would appear that thereafter, no formal order was passed. On 4th January, 1977, the Enforcement Office woke up and notice was given to the petitioner that adjudication proceedings were fixed in respect of the show cause notice of 1966 at 2.30 p.m. on 11th January, 1977. To this fresh notice for holding adjudication proceedings, the petitioner sent his reply on 6th January, 1977 setting out, in addition to facts in the earlier notice - the very pertinent fact that the Enforcement Directorate had earlier given certain directions to the Reserve Bank of India at Bombay, which were lifted after the earlier personal hearing given by the Director at New Delhi.