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Enforcement of the orders of Adjudicating Authority [ Section 14 ] - FEMA Ready Reckoner - FEMAExtract Enforcement of the orders of Adjudicating Authority Under this section 14 of , FEMA Act,1999, Failure to make Full payment of penalty imposed under section 13 within period of 90 days from date on which the notice for payment is served attracts liablity to civil imprisonment. The procedure for this purpose is laid down in various sub section of section 14. In Case of failure to make full payment of the penalty [Section 14(1)] Subject to the provisions of section 19(2) , if any person fails to make full payment of the penalty imposed on him under section 13 within a period of ninety days from the date on which the notice for payment of such penalty is served on him, he shall be liable to civil imprisonment under this section. Dishonest sale of property and concealment of particulars of transfer - Order of arrest and detention in civil prison [Section 14(2)] No order for the arrest and detention in civil prison of a defaulter shall be made unless the Adjudicating Authority has issued and served a notice upon the defaulter calling upon him to appear before him on the date specified in the notice and to show cause why he should not be committed to the civil prison, and unless the Adjudicating Authority, for reasons in writing, is satisfied: As per section 14(2)(a) can be invoked only if all the following conditions are fulfilled: - The defaulter has transfer, concealed, or removed , any part of the property. such transfer, concealment or removal was effected after the issuing of notice by the adjudicating authority such transfer, concealment or removal was dishonestly made. such transfer, concealment or removal was made with the object or effect of obstructing the recovery of penalty. As per section 14(2)(b) can be invoked only if all the following conditions are fulfilled:- The defaulter has the means to pay the arrears or some substantial part thereof. The defaulter did not have such means before the notice was issued by the adjudicating authority. The defaulter refuses or neglects to pay the arrears. Issue of warrant for the arrest of the defaulter [Section 14(3)] Notwithstanding anything contained in section 14(1) , The adjudicating authority is also empowered to issue arrest warrant in the two circumstances after recording it satisfaction as to why it has chosen to issue arrest warrant:- The defaulter is likely to abscond to that with the object or effect of delaying the execution of the certificate. The defaulter is likely to leave the local limits of the jurisdiction of the Adjudicating Authority with the aforesaid object or effect of delaying the execution of the certificate. Defaulter non-appearance in response to show cause notice served [Section 14(4)] Where appearance is not made pursuant to a notice issued and served under section 14(1) , the Adjudicating Authority may issue a warrant for the arrest of the defaulter. Execution of arrest warrant [Section 14(5)] Section 14(5) fixes the jurisdiction of the Adjudicating A uthority for the purpose of execution of the arrest issued under section 14(3) or section 14(4) . It seems that section 14(5 ) extends such jurisdiction also to another Adjudicating Authority within whose jurisdiction the defaulter may be found for the time being. Arrested person to be presented before Adjudicating Authority within 24 hours [Section 14(6)] Every person arrested in pursuance of a warrant of arrest under this section shall be brought before the Adjudicating Authority issuing the warrant as soon as practicable and in any event within 24 hours of his arrest (exclusive of the time required for the journey): Provided that, if the defaulter pays the amount entered in the warrant of arrest as due and the costs of the arrest to the officer arresting him, such officer shall at once release him. Default by HUF Explanation. For the purposes of this sub-section, where the defaulter is a Hindu undivided family, the karta thereof shall be deemed to be the defaulter. Opportunity to defaulter served shoe case notice/ brought before Adjudicating Authority [Section 14(7)] In this sub- section provides that the defaulter must be given an opportunity to show cause why he should not be committed to civil person. in this sub-section such an opportunity is given to the defaulter at any of the following two stages. (i) When he appears before the Adjudicating Authority pursuant to the show-cause notice; or (ii) When he is brought before the Adjudicating Authority in terms of section 14(6). The opportunity of hearing given to the defaulter is nothing but a legitimate right of the defaulter following the celebrated dictum audi alterem partem which is the foundation stone of the principles of natural justice accepted as an internal constituent of judicial process ever since the emergence of civil law. Detaintion or release of defaulter, in case Conclusion of inquiry [Section 14(8)] Pending the conclusion of the inquiry, the Adjudicating Authority may, in his discretion, order the defaulter to be detained in the custody of such officer as the Adjudicating Authority may think fit or release him on his furnishing the security to the satisfaction of the Adjudicating Authority for his appearance as and when required. Order for the detention of the defaulter [Section 14(9)] Upon the conclusion of the inquiry: the Adjudicating Authority may make an order for the detention of the defaulter in the civil prison and shall in that event cause him to be arrested if he is not already under arrest: Upon Satisfaction of arrears: Provided that in order to give a defaulter an opportunity of satisfying the arrears, the Adjudicating Authority may, before making the order of detention, leave the defaulter in the custody of the officer arresting him or of any other officer for a specified period not exceeding fifteen days, or release him on his furnishing security to the satisfaction of the Adjudicating Authority for his appearance at the expiration of the specified period if the arrears are not satisfied. Order of release [Section 14(10)] In terms of section 14(10), the defaulter who may be under arrest must be released when the adjudicating authority does not make the order off detention under section 14(9) . Execution of certificate [Section 14(11)] Every person detained in the civil prison in execution of the certificate may be so detained, (a) where the certificate is for a demand of an amount exceeding rupees one crore, up to three years , and (b) in any other case, up to six months; He shall be released from such detention on the amount mentioned in the warrant for his detention being paid to the officer-in-charge of the civil prison. Defaulter liable for payment of arrears [Section 14(12)] A defaulter released from detention under this section shall not, merely by reason of his release, be discharged from his liability for the arrears, but he shall not be liable to be arrested under the certificate in execution of which he was detained in the civil prison. Execution of detention order [Section 14(13)] A detention order may be executed at any place in India in the manner provided for the execution of warrant of arrest under the Code of Criminal Procedure, 1973. The provisions of the code of criminal procedure, 1973 which deal with execution of the warrant of arrest, particularly the place and the manner of execution , are as follows Section 77: where warrant may be executed Section 78: Warrant forwarded for execution outside jurisdiction section 79: Warrant directed to the Police Officer for execution outside jurisdiction. Section 80: Procedure on arrest of the person against whom warrant issued Section 81: Procedure by Magistrate before whom such arrested person is brought.
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