Quashed

Shagufta'S Forex Bureau v. Union of India

Bombay HC5 Jul 2012FERA/2/2012

Case brief

AI extract

What is this about?

Single judge bench held that the ex-parte order dismissing the appellant's appeal under the FERA was unsustainable due to insufficient evidence regarding service of notices, despite claims by the Revenue. The High Court quashed the order and restored the matter to the ATFE for fresh consideration on merits.

What did the court decide?

The order dated 31st March 2009 passed by the ATFE is quashed; the matter is restored to the ATFE for fresh hearing on merits with no order as to costs.

Shagufta'S Forex Bureau Vs Union of India — Civil Procedure and Limitation | Bombay HC (2012)

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

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FERA NO.2 OF 2012

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Shagufta’s Forex Bureau ..Appellant. Versus Union of India & Others ..Respondents.

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Mr.Santosh Maske with Mr.Faisal Farook, Mr.Shubail Farook i/by M/s.Legal Link for the appellant. Mr.R.A. Rodrigues with Mr.A.M. Sethna, Mr.D.P. Singh for the respondents.

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CORAM : J.P. Devadhar & R.Y. Ganoo, JJ. DATE : 5^th July 2012

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P.C. :

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Whether the ATFE was justified in dismissing the appeal filed by the appellant and confirming the penalty imposed by the order-in-original dated 16^th August 1999 is the question raised in this appeal.

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The appellant is a firm carrying on business as Full-fledged Money Changers (FFMC) after obtaining requisite license from the Reserve Bank of India (RBI). By a common order-in-original dated 16^th August 1999, the Special Director held that the appellant has violated the provisions of

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Foreign Exchange Regulation Act and accordingly imposed penalty upon the appellant. Challenging the order-in-original dated 16^th August 1999, the appellant filed appeal before the ATFE (‘ATFE’ for short) and the ATFE by its order dated 24^th January 2000 granted interim stay of recovery.

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It is the case of the appellant that after the stay was granted, no notice of hearing was given to the appellant and on 19^th January 2012 they were surprised to receive a notice dated 10^th January 2012 seeking to recover the penalty along with the copy of ex-parte order passed by the ATFE on 31^st March 2009, whereby the appeal filed by the appellant was dismissed. Challenging the aforesaid order of the ATFE dated 31^st March 2009, claimed to have been received on 19^th January 2012, the present appeal is filed by the appellant.

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According to the Revenue, the appellant was neither present nor represented by anyone on the various dates fixed before the ATFE, in spite of service of the notice upon the appellant. It is contended that the registry of the Appellate Tribunal has confirmed that the certified copy of the order dated 31^st March 2009 was served upon the appellant on 20^th April 2009.

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Admittedly, the order passed by the ATFE is an ex-parte order. Though it is claimed that the appellant repeatedly remained absent on different dates on which notices were served, no particulars have been given

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in the affidavit-in-reply regarding the dates on which the notices were served upon the appellant. Save and except making a statement in the affidavit-inreply, there is no confirmation from the registry of the ATFE that the order dated 31^st March 2009 was in fact served upon the appellant on 20^th April 2009.

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In these circumstances, in our opinion, it would be just and proper to set aside the order dated 31^st March 2009 passed by the ATFE and restore the matter to the file of the ATFE for fresh consideration in accordance with law.

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Accordingly, the impugned order dated 31^st March 2009 passed by the ATFE is quashed and set aside and the ATFE is directed to hear the appeal on merits and in accordance with law.

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The appeal is disposed of in above terms with no order as to

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costs.

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Shagufta'S Forex Bureau v. Union of India

Case brief

What is this about?

What did the court decide?

Shagufta'S Forex Bureau v. Union of India

Case brief

What is this about?

What did the court decide?

What the court decided

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