GANAPATI EXPORTS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an application for quashing of a proceeding being case No. C/898/93 under Section 57 against the accused-petitioner No. 1 and Section 57 read with Section 68 of the Foreign Exchange Regulation Act against the accused-petitioner Nos. 2 and 3.

(2.) On 21-5-1986 the Special Director Enforcement Directorate, Foreign Exchange Regulation Act, Government of India issued a memorandum being No. T-4/1-C/86 (SCN II) calling upon the accused-petitioners to show cause as to why adjudication proceeding as contemplated in the said Act should not be initiated for violation of the provision of Section 9(1)(C) of the Foreign Exchange Regulation Act, 1973. The petitioners submitted reply to the show cause and after hearing the parties the adjudicating authority passed an order on 27-11-90 vide order No. SDE/R-II/19-20/90 dated 27-11-90 passed by the Special Director, Enforcement Directorate, F.E.R.A., Govt. of India, New Delhi. the adjudicating authority imposed a penalty of Rs. 1,00,000/- (One lakh) upon the accused-petitioner No. 1 and Rs. 50,000/- each upon the accused-petitioner Nos. 2 and 3. Being aggrieved by the aforesaid order dated 27-11-90 the accused-petitioners preferred an appeal under Section 52 of the Act, 1973 before the Chairman, Foreign Exchange Regulation Appellate Board, New Delhi on 8-1-91 along with an application for dispensing with the deposit of penalty which was imposed by the adjudicating authority.

(3.) During pendency of the appeal the Union of India representing by the Assisting Director, Enforcement Branch having office at Lindsay Street, Calcutta, lodged a complaint before the learned Chief Metropolitan Magistrate, Calcutta against the accused-petitioner under Section 57 read with Section 68 of Foreign Exchange Regulation Act. On the said petition of complaint the learned Magistrate took cognizance of the offence and issued process against the petitioner No. 1 under Section 57 of the said Act and against the petitioner Nos. 2 and 3 under Section 57 read with Section 68 of the said Act.