DIRECTOR ENFORCEMENT DIRECTORATE CABINET SECRETARIAT DEPTT PERSONNEL AND A R GOVERNMENT OF INDIA Vs. SAROJ KUMAR BHOTIKA

JUDGEMENT

(1.) This is an appeal from a judgment of T.K. Basu, J. delivered on the 18th Jan., 1977 in an application under Article 226 of the Constitution challenging a show cause notice dated the 13th Feb., 1975, issued by the Director, Enforcement Directorate, Government of India and an order/notice dated the 14th Nov., 1975, which the said Directorate had issued. The learned trial Judge has allowed the application and directed the issue of a writ in the nature of mandamus inter alia, calling upon the respondents to recall, cancel and withdraw the said notice dated the 13th Feb., 1975 and the said order/notice dated the 14th Nov., 1975.

(2.) On the 20th Feb., 1970, the Reserve Bank of India (hereinafter called "R. B. I.") issued a press note advising foreign companies proposing to sell their Indian assets to obtain the prior approval of the R. B. I. before effecting sale, if repatriation of sale proceeds (of more than Rs. 10 lacs) is involved.

(3.) On Jan. 7, 1972, the National and Grindlays Bank Ltd., University Road, Bombay, applied to the R. B. I. for permission to sell 25,000 equity shares held by Ralli International Ltd., London (hereinafter called "Ralli") in Oriental Carpet Manufacturers (India) P. Ltd., Amritsar (hereinafter referred to as "OCM"), Ralli, an United Kingdom Company held 100% shares in OCM, an Indian Company.