The need for initiating proceedings within a reasonable period and the unfairness and unreasonableness of initiating proceedings after a significant lapse of time.

JUDGMENT

B.R. Gavai, J.- Since the facts and the question of law that arises for consideration in all the appeals are similar, all these appeals are being heard and disposed of by the present Judgment.

2. In Civil Appeal No. 9337 of 2010, the respondent- Bank was granted license to act as an authorized dealer under the provisions of sub-sections (4) and (5) of Section 6 of the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as 'the FERA'). The respondent-Bank had accepted cash in foreign currency, equivalent to Rs.23,17,630/- during the period from October 1992 to January 1993 to the credit of NRE (Non- Resident External) Account of Umakant Bhardwaj, a Non- Resident Indian (NRI). For the said transaction, a show-cause notice came to be issued on 25th February 2002 by the appellants, alleging therein that the respondent-Bank had contravened the provisions of Sections 8(1), 64(2), 64(4), 64(5) and 73(3) of the FERA. The said show-cause notice was replied by the respondent-Bank on 30th October 2002. It was the contention of the respondent-Bank that the restriction to the effect that only an NRI Account Holder shall deposit foreign currency in his NRE account was added only with effect from 31st July 1995 vide a Circular issued by the Reserve Bank of India ('RBI' for short) of the same date. It was therefore submitted that the said Circular dated 31st July 1995 could not be given effect retrospectively.

3. However, vide notice dated 5th January 2005, the Adjudicating Officer held that the adjudication proceedings should be held against the respondent-Bank and fixed the matter for further proceeding on 25th January 2005. Being aggrieved by the decision of the Adjudicating Officer to proceed further, the respondent-Bank filed a petition being Writ Petition (Civil) No.1211 of 2005 before the High Court of Delhi. The learned Single Judge of the High Court, vide order dated 23rd March 2007, directed the Advocate for the respondent therein (appellant herein), i.e., the Enforcement Directorate to take specific instructions as to whether prior to 31st July 1995, foreign currency deposits could be made by individuals other than the NRI Account Holder in the NRE accounts of such NRIs. On 19th April, 2007, the Advocate for the appellants herein (respondents in the High Court) stated, on instructions, that prior to 31st July 1995, foreign currency deposits could be made by individuals other than the NRI Account Holders in the NRE accounts of such NRIs. As such, the learned Single Judge of the High Court, vide order dated 19th April 2007, set aside the show cause notice as well as the proceedings pursuant thereto. The same was sought to be reviewed by way of Review Application No. 213 of 2007 before the High Court of Delhi. However, the learned Single Judge of the High Court dismissed the said Review Application vide judgment dated 16th January, 2009.

4. Being aggrieved by the judgment and order dated 19th April, 2007 passed in Writ Petition (Civil) No.1211 of 2005 and judgment and order dated 6th January 2009 passed in Review Application No.213 of 2007 of the learned Single Judge of the High Court, the appellants herein filed Letters Patent Appeal No.117 of 2009 before the High Court of Delhi. Vide the impugned judgment and order dated 26th March 2009, the Division Bench of the High Court dismissed the said Letters Patent Appeal. Being Aggrieved thereby, Civil Appeal No. 9337 of 2010 has been filed by the appellants herein.

5. In Civil Appeal Nos. 4228-4261 of 2011, various show cause notices were issued by the Enforcement Directorate jointly to the respondent-Standard Chartered Bank and others in April and May 2002 for the transactions that took place in the year 1992-1993, alleging therein that the respondent- Banks, by accepting foreign currency deposits by individuals other than the NRI Account Holders in respect of the NRE accounts, have committed violation of the provisions of the FERA. The said show cause notices were chall