(1.) THE 1st petitioners in both the petitions are Banking Company. Others are their officials. The Reserve Bank of India authorised the Companies to deal with foreign exchange under section 6 of the Foreign Exchange Regulation Act, 1973 (Precisely the Act 1973 ). According to the respondent-Directorate of Enforcement, the Companies by making certain credits contravened sections 8 and 9. The Directorate therefore, resorted to section 68 and served on the petitioners various Notices purported to be under section 50 read with section 51 (Show Cause Notice), and under proviso to section 61 (Opportunity Notice), of the Act 1973. Petitioner claimed Writ of Prohibition against the proceedings to be initiated pursuant to these Notices. Dr. Chandrachud, the learned Additional Solicitor General questioned the tenability of petitions being premature. Having regard to the nature of challenge, we, however, proceed to deal with the grounds on merit.
(2.) MR. Venugopal, the learned Counsel for petitioners urged that section 68 is violative of guarantee enshrined under Articles 14 and 21 of the Constitution of India. No doubt, the Act 1973 is included in Schedule IX (Item 100), thereby it has received protection from attack on the constitutional validity in term of Article 31-B of the Constitution. Violation complained of however, being to the Basic structure of Constitution, namely Rule of Law, the Court has to quash the impugned legislative provisions.
(3.) TO appreciate the challenge, it would be more appropriate to reproduce the impugned provisions. Section 68. Offences by companies---
ABOUT US "REGENT COMPUTRONICS PVT. LTD." is a Company incorporated in 1991 under the provisions of the Companies Act, 1956. Since its inception to 1995, the Company was busy in carrying out the activities related to various Banks' Job Work..
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