NAND KISHORE TODI Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners who are husband and wife claiming to be non-resident Indians residing in the United States of America have applied for permission under section 31 (1) of the Foreign Exchange Regulation Act, 1973 to acquire and hold immovable property in India being Flat No. B320 on the 2nd floor of the premises No.106 or Narkeldanga Main Road, Calcutta in Form No. IPI-l along with requisite papers at the Calcutta Head Office of Reserve Bank of India on l0th March 1987.

(2.) The petitioners said permission has been refused by the controller. Reserve Bank of India Exchange Control Department, Central Office. Bombay by the order dated, 25th July 1987 and thereafter by order dated, 24th August, 1987. As the representations of the petitioners through their authorised representative S. K. Khemka & Co., Chartered Accountants to the Controller. Reserve Bank of India has found no response of the Reserve Bank of India, the petitioners have moved this Court under Article 226 of the Constitution of India praying for cancelling and setting aside the impugned orders and for certain consequential reliefs.

(3.) The petitioners allege that as the respondents have not communicated their refusal to such permission within 9'0 days of the said of application filed by the petitioners then the application for permission should be deemed to have been granted by the Reserve Bank of India in view of the second proviso to sub-section (3) of section 31 of the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as FERA).