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2004 (1) TMI 378

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..... . Respondent No. 1 filed a writ petition before the Bombay High Court questioning legality of the show-cause notice No. T-4/144/SDE/(AKB)/ B/2002 dated 31st May, 2002 issued by the appellant No. 1 and prayed that the same may be quashed and set aside, for allegedly being illegal, null and void. A prayer for interim relief was made to the effect that pending hearing and final disposal of the writ petition, the Court be pleased to pass an order of injunction restraining the respondents i.e., present appellants before this Court and the State of Maharashtra (respondent No. 3 in the present appeal) and/or his subordinates or any other officer acting on his behalf from initiating any proceeding pursuant to the show-cause notice referred to above .....

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..... ner) was clearly guilty of various provisions of FERA and FEMA. The High Court should have thrown out the writ petition at the threshold. 4. Per contra, learned counsel for respondent No. 1 submitted that the show-cause notice is clearly unfounded in law, cannot stand the test of legal scrutiny and the High Court was justified not only in entertaining writ petition but also in granting the interim protection. 5. This Court in a large number of cases has deprecated the practice of the High Courts entertaining writ petitions questioning legality of the show-cause notices stalling enquiries as proposed and retarding investigative process to find actual facts with the participation and in the presence of the parties. Unless, the High Court is .....

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..... not been done in the case at hand. 7. While issuing notice on 7-7-2003, this Court had granted interim stay of the impugned interim order. The respondent had entered appearance and we have heard the learned senior counsel on either side. In the fitness of things, taking into account the above circumstances, we dispose of the appeal with a direction that the proceedings emanating from the show-cause notice shall be continued, but the final order passed pursuant thereto shall not be communicated to the respondent No. 1 (writ petitioner) without leave or further orders of the High Court. The writ petition shall be disposed of on merits in accordance with law. Any observation made in this appeal shall not be construed to be expression of any o .....

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