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1977 (2) TMI 82 - SC - Companies LawWhether the Indian currency constituting the sale proceeds of foreign exchange seized from the respondent was currency in respect of which the contravention had taken place? Held that:- Appeal allowed. The intention of the legislature is clear from the Explanation to sub-section (IB) of section 23 which provides that "for the purposes of the sub-section, property in respect of which contravention has taken place shall include deposits in a bank, where such property is converted into such deposits". If for this sub-section any property in respect of which a contravention has taken place includes deposits into which the property may be converted and can be reached even where the deposits are in a bank, it is not reasonable to think that the sale proceeds in Indian currency of any foreign exchange would be outside the scope of section 23(1B) and, therefore, not liable to be confiscated. In our opinion, the High Court was wrong in quashing the order of confiscation which we consider valid and lawful.
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