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IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
Tapabrata Chakraborty, Reetobroto Kumar Mitra
Sanjay Jhunjhunwala – Appellant
Versus
Reserve Bank Of India – Respondent
| Table of Content |
|---|
| 1. challenge to dismissal of writ petition. (Para 1 , 2 , 3) |
| 2. arguments on the validity of compounding post-adjudication. (Para 4 , 5 , 6) |
| 3. definition and process of compounding. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19) |
| 4. timing of compounding applications relative to adjudication. (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34) |
| 5. consequences of late compounding applications. (Para 35 , 36 , 37 , 38) |
| 6. upheld dismissal of writ petition. (Para 39 , 40) |
| 7. final disposition of the appeal. (Para 41 , 42) |
JUDGMENT :
Reetobroto Kumar Mitra, J.
1. The present appeal challenges an order passed by a learned Single Judge on 1st April, 2025, dismissing the Writ Petition filed by the appellant herein. The primary prayer in the Writ Petition was that the writ petitioner be permitted to renew the compounding application made by him, thereby quashing the rejection of the compounding application on 11th September, 2024.
2. The facts in a nutshell are:-
a. The petitioner utilised the liberalised remittance scheme between February 2011 and 8th February 2013 to remit USD5,99,999 equivalent to (at prevailing exchange rate at the time)
Compounding applications under the Foreign Exchange Management Act cannot be entertained post-adjudication, as they defeat the Act's intent to streamline penalty processes and require admission of co....
Rule of law which is one of the basic features of our Constitution envisages the administration of justice in accordance with law; Courts do this job ordinarily; a purported subordinate legislation w....
Once a contravention has been compounded, no further proceedings can be initiated or continued against the person committing the contravention.
The Reserve Bank of India must return compounding applications if the Enforcement Directorate identifies serious contraventions suspected of money laundering.
The Enforcement Directorate cannot withhold a no-objection certificate for compounding applications unless serious contraventions are established, which was not the case here.
The application of new compounding guidelines for offences under the Income Tax Act cannot override previously established rights affirmed by judicial orders, maintaining the principle of legal final....
A circular cannot override or restrict the application of specific provisions enacted by the legislature and cannot take away a statutory right with which an assessee has been clothed.
The complainant has the unilateral right to compound offences under Section 138 of the NI Act, independent of the guidelines in Damodar S. Prabhu.
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