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2010 (1) TMI 516

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..... ith Rui Rodrigues, for the Respondent. [Judgment per : V.C. Daga, J.]. - Petitioners are seeking a Writ of Prohibition or a Writ in the nature of Prohibition and/or direction under Article 226 of the Constitution of India prohibiting the respondents from proceeding with the adjudication pursuant to their letters dated 3rd July, 2001 and 29th August, 2001 annexed to the petition. Factual Backdrop : 2. The petitioners herein are facing adjudication proceedings under the provisions of Foreign Exchange Regulation Act, 1947, Foreign Exchange Regulation Act, 1973 and Foreign Exchange Management Act, 1999 for the alleged acts and omissions alleged to have been committed in the year 1958, 1966 and 1970. 3. The petitioners herein, states .....

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..... epartment at all for a period of 28 years in relation to the impugned show cause notices. The Department has out of the blue sought to adjudicate upon the impugned show cause notices. In their submission, neither they have any record of the receipt of the impugned show cause notices nor any records of the action sought to be adjudicated upon by the show cause notices. No evidence is available at this length of time. In the premises, the further proceeding pursuant to the impugned show cause notices is wholly arbitrary and deprives the petitioners of their right of equality before the law and violates the guarantee enshrined in Article 14 of the Constitution of India. 8. The petitioners submit that the long delay of 28 years has effectivel .....

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..... d Universal Generics Pvt. Ltd v. Union of India - 1993 (68) E.L.T. 27 (Bom.) 12. Per contra, Mr. A.S. Rao appearing along with Mr. Rui Rodrigues for the respondents urged that in absence of any specific period of limitation in the statute to complete the adjudication proceedings, no objection can be taken to the action of the respondents notwithstanding revival of the proceedings after a lapse of 27 years. Mr. Rao also pressed into service the judgment of the Apex Court in the case of Standard Chartered Bank v. Directorate of Enforement - 2006 (197) E.L.T. 18 (S.C.) and relied upon the Division Bench judgments of this Court in the case of Standard Chartered Bank v. Union of India in W.P. No. 649 of 2007 decided on 27th July, 2007 (unrepor .....

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..... et, it may be stated that it is not the case of the petitioners that the Adjudicating Authority had no jurisdiction to initiate the proceedings. The contention raised in the present petition is that the Adjudicating Authority would ceased to have jurisdiction by lapse of time. The question that really arises for consideration is; whether or not the adjudication proceedings on account of lapse of more than two decades have become state and any further continuation thereof would be arbitrary? As already stated in support of the contention that the proceedings should be quashed and should not be proceeded with, the Learned Counsel for the petitioners relied on the judgments of the Division Bench of this Court in the case of Universal Generics .....

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..... the determination of the question will depend upon the facts of each case. 18. In the case of Standard Chartered Bank v. Union of India (cited supra), decided by the learned Division Bench of this Court on 27th July 2007 (unreported), the Bench refused to set aside adjudication proceedings challenged on the identical ground holding that the interim orders passed by this Court as well as the Apex Court from time to time were operating against the adjudication authority, consequently, it was not possible for the respondents therein to proceed with the proceedings for adjudication. There was no delay on the part of the respondents. Consequently, the learned Division Bench did not find favour with the submissions made by the petitioners to qu .....

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