MOHAN KHANNA, Vs. UNION OF INDIA AND ORS.

JUDGEMENT

(1.) BY this order, we are disposing of the preliminary objection raised on behalf of the respondents to the jurisdiction of this court to entertain these petitions.

(2.) A perusal of the record shows that the petitioners are partners in B. R. Engineering and Company (hereinafter referred to as "the company"), which is registered at Mumbai and has its office at 102, Loha Bhavan, P.D. Mellow Road, Mumbai. In the year 1994 -95, the company exported computer software packages to A/o Bowl Indigo 11531, Moscow St. Sayanskaya 15, Russia, owned by one Shri Salil Gupta. The business premises of the company as well as residential premises of Shri Rahul Gupta, one of the partners of the company, were searched under Section 37 of the Foreign Exchange Regulation Act, 1973 (for short "the Act"), on May 21, 1997, resulting in seizure of certain documents. Residential premises of Shri Ashok Gandhi and Shri Kirti Kumar, two of the persons involved in the export of software packages to Russia, were also searched under Section 37 of the Act resulting in recovery and seizure of certain documents. After considering these documents and recording the statements of S/Shri Rahul Gupta, Shekhar Gupta and Nemi Chand Shah, the Special Director, Enforcement, Delhi, issued notice dated February 1, 2000, to the company and its partners including the petitioners to show cause as to why adjudication proceedings as contemplated by Section 51 of the Act should not be held against them for contravention of the provisions of Section 9(1)(f)(i) read with Section 64(2) of the Act. The petitioners have challenged the notices dated February 1, 2000, on various grounds set out in the writ petitions and have prayed as under :

(3.) IN the written statements filed on behalf of respondents Nos. 1 to 3 and respondent No. 4, a common objection has been raised to the jurisdiction of this court to entertain the writ petitions on the ground that no part of the cause of action has arisen within the territorial jurisdiction of this court.