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1962 (10) TMI 17 - SC - Companies LawWhether the appellants were owners of this foreign exchange? Whether the notification is ultra vires section 9 of the Act? Held that:- Considering the fact that the appellants received this foreign exchange as gift, even though the intention might have been to spend the amount on their trip in the United States of America. Further, as the Appellate Board has rightly pointed out, it is obvious that the money was given to the appellants outright, as otherwise the appellants would not have offered the amount found on them on October 1, 1958, for sale through the Reserve Bank as they did on October 25, 1958. There can, therefore, be no doubt that the appellants became owners of this foreign exchange. The notification in the present case by using the words "or who may hereafter become the owner of any foreign exchange" merely makes explicit what was already implicit in the section. In fact, even if the impugned clause had not been included in the notification, it would have made no difference to the meaning. Like the main section, the remaining part would have covered cases of owning and holding foreign exchange in the past as well as in the future. The clause has been added only to clarify the position, and that is all. We are therefore of opinion that the notification is completely intra vires section 9. Appeal dismissed.
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