TMI Blog1977 (2) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - 2081 OF 1968 - - - Dated:- 9-2-1977 - V. R. KRISHNA IYER AND A. C. GUPTA, JJ. G.L. Sanghi and Girish Chandra for the Appellant . Y.S. Chitaley and Ashok Grover for the Respondent . JUDGMENT Gupta, J. This appeal on certificate of fitness turns on the meaning o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any sentence or penalty which it may impose for such contravention, direct that any currency, security, gold or silver, or goods or any other money or property, in respect of which the contravention has taken place, shall be confiscated to the Central Government" There is an Explanation to this sub-section which says : " Explanation. For the purposes of this sub-section, property in respect of which contravention has taken place shall include deposits in a bank, where the said property is converted into such deposits. " These are the facts on which the question of construction of section 23(1 B) arises. On the morning of January 28, 1966, the respondent who resides and carries on business in Delhi arrived at Palam Airport by I.A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfiscation of the Indian currency in question" and quashed the impugned order. The contravention alleged is of section 4(1) which prohibits, inter alia , sale of any foreign exchange. Foreign exchange as defined in section 2( d ) means foreign currency. Under section 23(1B) any currency, security, gold or silver, or goods or any other money or property "in respect of which" the contravention has taken place is liable to be confiscated to the Central Government. The currency confiscated in this case was Indian currency. The question is whether 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. The words "in respect of" admit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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