J J EXPORTER LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner No. 1 is a Company incorporated under the Companies Act, 1956 having its registered office at Calcutta and carries on business of exporting silk fabric and garments and for that purpose it enters into long terms agreement with foreign buyers for export of such materials fixing price of the products in accordance with market situation prevailing at the relevant time and the fluctuations in the dollar rates vis-a-vis the Indian rupee. Petitioner No. 2 is a Shareholder of petitioner no. 1.

(2.) Respondent Nos. 3 and 4 are Directorate of Enforcement and its Assistant Director having Sub-Zonal Office at Patna, which had been established by the Central Government under Section 36(i) of the Foreign Exchange Management Act, 1999 (hereinafter referred to as 'the FEMA' for the sake of brevity) for taking up investigation of contravention of the provisions of the Act or any rule, regulation, notification, direction or order issued in exercise of powers under the FEMA or contravention of any condition subject to which an authorization is issued by the Reserve Bank of India as provided under Section 13 of the FEMA.

(3.) Respondent No. 5 CITI Bank N.A. is a Banking Company constituted and registered in accordance with the laws of United States of America and is registered under the Banking Regulation Act, 1949 (hereinafter referred to as 'B.R.A.' for the sake of brevity), as it carries its business in India also having its principal place of business at Mumbai and Kolkata and it is authorized by the Reserve Bank of India (respondent no. 2) to deal in foreign exchange and foreign securities as authorized dealer under Section 10 of the FEMA and it is also licensed under the B.R.A. and is bound by the provisions thereof.