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1968 (11) TMI 71 - SC - Companies LawWhether on the facts set out in the show cause notices, which facts have to be assumed to be correct for the purpose of these proceedings, the respondents can be held to have contravened section 12(1)? Held that:- The fact that the exporter may be proceeded under section 12(2) for non-payment of the full amount payable by the foreign buyer, or that the Reserve Bank can in the eventualities mentioned in section 12(5) require the holding up of shipping documents or that the Reserve Bank by exercising powers under section 12(6) secure contracts and other evidence to discover the full amount payable do not throw any light on the construction of section 23A and section 12(1) except that the legislature is anxious that the "full export value" shall be received in this country. Section 23A read with section 12(1) calls in aid of customs authorities to achieve the same object, but ropes in along with the exporter the persons concerned in the prohibited export. Unable to appreciate how the existence of section 167(37), section 167(72) and section 167(81) is of any assistance for the purpose of interpreting section 23A and section 12(1) of the Exchange Act. It may be —I do not decide it—that an exporter, like the respondents, will also be liable to be proceeded against under these items of section 167. Taking the facts as alleged by the customs authorities to be true, as they must be taken to be true for the purpose of this application under article 226, it seems to me that no case for the issue of a writ of prohibition has been made out. In the result the judgment of the appeal court is reversed and that of the learned single judge restored.
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