Judgment

GUPTA, J.:- This appeal on certificate of fitness turns on the meaning of the words "in respect of" occuring in Section 23 (1B) of the Foreign Exchange Regulation Act, 1947. For a proper appreciation of the question it is necessary to refer to two other sections of the Act, Section 4 (1) and Section 23 (1) (a), before we turn to Section 23 (1B).

2. Section 4 (1) lays down :

"Except with the previous general or special permission of the Reserve Bank, no person other than an authorised dealer shall in India and no person resident in India other than an authorised dealer shall outside India, buy or otherwise acquire or borrow from, or sell or otherwise transfer or lend to, or exchange with, any person not being an authorised dealer, any foreign exchange."

Section 23 (1) (a) provides.

"If any person contravenes the provisions of section 4, Section 5, Section 9, Section 10, sub-section (2) of Section 12, Section 17, Section 18A or Section 18B or any rule, direction or order made thereunder, he shall-

(a) be liable to such penalty not exceeding three times the value of the foreign exchange in respect of which the contravention has taken place, or five thousand rupees whichever is more