Judgement

SIKRI, J.: This is an appeal by certificate granted by the High Court of Calcutta under Art. 132 (1) of the Constitution and is directed against the judgment of the High Court accepting a petition under Art. 226 of the Constitution and quashing adjudication proceedings under the Foreign Exchange Regulation Act, 1947 (VII of 1947)- hereinafter referred to as the Act.

2. The relevant facts are as follows. Following the recovery in 1954 of some foreign currency and Travellers Cheques at No. 311, Bow Bazar Street, Calcutta, where the respondent along with his mother and brother, carried on the business of jewellers, the Director of Enforcement issued a notice on April 23, 1958, on the petitioner calling upon him to show cause within 10 days of the receipt of the notice why adjudication proceedings should not be held against him for contravention of S. 23 (1) of the Act. On May 10, 1958, the respondent replied to the above memorandum giving his version as to how he came into possession of the foreign currency, but he denied having sold any travellers cheques. He prayed that the proceedings may be dropped and the currency seized returned to him. The Director of Enforcement, after