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DEBANGSU BASAK, MD. SHABBAR RASHIDI
HOOGHLY MILLS CO. LTD. – Appellant
Versus
UNION OF INDIA – Respondent
JUDGMENT :
(Debangsu Basak, J.) :
1. Seven appeals are taken up for analogous hearing as they emanate out of the same order in appeal dated March 2, 2009 passed in respect of adjudication order No. SDE(SSB)/II/07/2003 dated August 28, 2003 of the Special Director, Enforcement Directorate. The appeal being No.FEA/13/2009 is at the behest of the company while the appeals being FEA/15/2009 to FEA/20/2009 are appeals at the behest of the directors of such company.
2. The Enforcement Directorate issued a memorandum dated May 3, 2002 to the company and its directors calling upon them to show cause as to why adjudication proceedings should not be initiated against them for their failure to take action to secure the receipt of export proceedings to the tune of US$ 6,37,000 out of the total invoice value of US$ 8,37,200 in respect of 3GRs all dated March 29, 1996.
3. The show cause notice dated May 3, 2002 resulted in an order of adjudication dated December 30, 2002. The adjudication order on appeal was set aside on the ground of violation of principles of natural justice and was remanded for fresh adjudication. The fresh adjudication resulted in an order dated August 28, 2003.
4. The order d
The Adjudicating Officer had taken notice of the contraventions within the time period specified by Section 49 (3) of the Act of 1999.
Point of law : information of incorrect entries was in public domain and with the authorities, as custodian of the records, who sought their correction, whereas in the instant case the information wi....
The court established that interest claims do not fall under the penalty provisions of the FT Act, thus cannot be adjudicated by the authority designated under the Act.
Execution of foreign judgments requires compliance with domestic legal provisions, including obtaining necessary permissions, which were not secured in this case.
The court established that the adjudication process under FEMA must be followed, and a show cause notice is not typically subject to judicial review unless jurisdictional errors are evident.
Show cause notices issued prior to 29.03.2018 must be adjudicated within one year from that date; otherwise, they lapse.
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