JAY ENGINEERING WORKS LTD Vs. M G WAGH

JUDGEMENT

(1.) This is an appeal from a judgment of Mr. Justice K. L. Roy delivered on November 20, 1970. By this judgment the validity of a notice under Section 12 (2) of the Foreign Exchange Regulation Act, 1947 was upheld. There was another notice under Section 5 (1) of the said Act with which we are not concerned in this appeal. In the writ application before Mr. Justice Roy the notice under Section 12 (2) dated the 9th December, 1968 was challenged and appropriate writs were prayed for.

(2.) The appeal first came up for hearing before my learned brother Mr. Justice Sabyasachi Mukharji and myself. It was urged on behalf of the respondents that in view of certain observations of the Supreme Court we would be invited to differ from a division bench judgment of this Court on the point involved in the appeal. It was urged further that there were also other strong reasons why the division bench of our Court should not be followed. For avoiding all controversies I constituted this bench of three Judges in order that the contentions on behalf of the respondents may be fully urged.

(3.) The facts are that between March 31, 1962 and April 7, 1962 Messrs. Jay Engineering Works Ltd. exported electric fans and sewing machines to Mombasa in South East Africa by five several consignments of divers invoice values. It is alleged that M/s. Jay Engineering Works Ltd. had an agency agreement in East Africa with M/s. India Machinery Importers Ltd. In June, 1962, this agreement was terminated. And in November 1962, M/s. India Machinery Importers' business was completely closed down.