2024:MHC:1702 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 03.04.2024 CORAM THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM W.P.No.8811 of 2024 and W.M.P.Nos.9812 & 9814 of 2024

1.M/s.Innvol Medical India Limited, 387, Wallajah Road, Kunnam Village, Sriperumbudur Taluk, Kancheepuram District, Pin-631 604.

2.Mr.Sunil Mahesh Shastri ... Petitioners Vs.

Directorate of Enforcement Southern Regional Office, 'Shastri Bhavan', III Block, B wing, 26, Haddows Road, Chennai – 600 006. ... Respondent Prayer:Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the records of the impugned order dated 26.02.2024, bearing reference no.SDE/SRO/CEO-I/04/2024 issued by the respondent and to quash the same.

For Petitioners : Mr.Sathish Parasaran Senior Counsel for Mr.P.Rajkumar Jhabakh For Respondent : Mr.N.Ramesh Special Public Prosecutor for ED

ORDER

The lis on hand has been instituted challenging the validity of the Order-in-Original passed by the Special Director, Directorate of Enforcement, Southern Regional Office in proceedings dated 26.02.2024.

2. Mr.Sathish Parasaran, learned Senior Counsel appearing on behalf of the writ petitioners would mainly contend that the show cause notice was issued to the petitioners in connection with an enquiry and adequate opportunities were not provided to the petitioners to defend their case. The Order-in-Original was passed without affording opportunity to the petitioners to defend their case. Therefore, rules of natural justice has been violated.

3. The Order-in-Oiginal states that on 17.01.2023, no one appeared for enquiry. Contrarily, an intimation was given to the petitioners that the enquiry was postponed and the Authorities have decided not to conduct enquiry on 17.01.2023. Since rules of natural justice has been violated, the writ petition is entertainable.

4. In support of the contention, the Judgment of the Hon'ble Supreme Court of India has been relied upon. In the case of Radha Krishan Industries Vs. State of Himachal Pradesh & Ors. reported in MANU/SC/0293/2021, the Hon'ble Supreme Court held that the writ petitions are entertainable under Article 226 of the Constitution, if there has been violation of principles of natural justice. Citing, the Judgment, it is contented that the present case also there is a glaring violation of principles of natural justice. Therefore, the writ petition is entertainable.

5. Mr.N.Ramesh, learned Special Public Prosecutor, who takes notice for the respondent would oppose by stating that Section 19 of the Foreign Exchage Management Act 1999, provides an appeal to the Appellate Tribunal for foreign exchange. The appeal is to be filed within a period of 45 days from the date of Order-in-Original passed by the Authority. Therefore, the petitioners have to prefer an appeal and the writ petition is to be rejected.

6. Mr.N.Ramesh would further submit that opportunities were provided to the petitioners and the first show cause notice was issued to the petitioners on 05.02.2018. The copy of the complaint was enclosed along with the show cause notice enabling the petitioners to respond. In respect of the said show cause notice, the petitioners have submitted their explanations/objections.

7. The order impugned would reveal that a show cause notice was issued along with the copy of the complaint to the petitioners and they have submitted their reply. Thereafter personal hearing was provided. The details regarding the personal hearing are stated as follows:

“5. Personal hearing of Shri.Chandan Anchaliya and Shri.Sunil Mahesh Shastri:-

5.1 On 15.12.2022, Shri.Sunil Mahesh Shastri and Shri.Chandan Anchaliya appeared before the undersigned and Shri.Chandan Anchaliya appeared on behalf of Noticees No.1,2,4,5,6,14,19 and submitted authorization.

5.2 He mentioned that he already replied to the SCN and submitted the copy of the same. On being produced, it is seen that it was the response to the SCN No.T-4/CEZO- II/06/2022 (GB) dated 3