JUDGMENT

UNTWALIA, J.:— In this appeal by special leave an important question of law falls for our determination. It concerns the interpretation of Section 12 (1) of the Foreign Exchange Regulation Act, 1947, Central Act 7 of 1947 as it stood amended at the relevant time by Act 40 of 1969.

2. The appellant is a firm, one of the partners or proprietors of which is Shri T. K. Seethy. It is a dealer in Coir Yarn and exports the said commodity to foreign buyers also. On March 24, 1971 a shipping bill was filed on behalf of the appellant for the export of 150 bales of Coir yarn to Trieste a port in Italy. The consignee s name in the 1529 shipping bill was shown as M/s. Ferolektro. Sarajavo, Yugoslavia, Indisputably the Central Government had published a notification in the official gazette under Section 12 (1) of the Foreign Exchange Regulation Act prohibiting the export of coir yarn from India to certain place specified in the notification including Italy unless certain condition were fulfilled. The exporter was, therefore, required to comply with the requirement of the said provision of law and file a declaration in the prescribed form. The relevant prescribed form in the Foreign Excha