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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice R. SURESH KUMAR
Thomas Cook India Limited – Appellant
Versus
Additional Director Adjudicating Authority Directorate of Enforcement, Chennai – Respondent
| Table of Content |
|---|
| 1. introduction of connected appeals under fema. (Para 1 , 2 , 3 , 4) |
| 2. arguments regarding waiver of pre-deposit. (Para 5 , 6 , 7 , 8 , 9 , 10) |
| 3. court's analysis of discretion in penalty mandates. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19) |
| 4. dismissal of appeals. (Para 20) |
JUDGMENT :
R. Suresh Kumar J.
1. Since the issue involved in all the four appeals is inextricably connected with each other, all these appeals were heard together and are disposed of by this common judgment.
2. As against the order of the adjudicating authority under the Foreign Exchange Management Act, 1999 (In short ' FEMA '), appeals had been filed before the appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SA FEMA ) at New Delhi, where, the appellants had sought for waiver of pre-deposit of penalty.
3. For better understanding of the case, the facts in C.M.A.No.2802 of 2024 is traversed herein. The adjudicating authority imposed a sum of Rs.3 Crores penalty on M/s.Thomas Cook India Limited / the appellant in C.M.A.No.2802 of 2024 and imposed a penalty of Rs.1.50 Crores on one Mr.Amit Bhatia, who claimed to be the authorised si
The Tribunal must consider undue hardship in penalty pre-deposit waivers under Section 19(1), balancing it against the need to safeguard penalty realization.
The court discussed the necessity of balancing enforcement of penalties with considerations of undue hardship, allowing for a modification of pre-deposit requirements due to financial distress.
The main legal point established in the judgment is the requirement for the authority to consider the appellant's financial hardship and the material submitted, and to exercise discretion in accordan....
The requirement of pre-deposit under Section 129E of the Customs Act is mandatory, with limited discretion for waiver in exceptional circumstances, reaffirmed by recent judicial precedents.
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