TMI Blog2004 (1) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... F 2004 - - - Dated:- 9-1-2004 - DORAISWAMY RAJU AND ARIJIT PASAYAT, JJ. A.L. Panda, Ms. Neelam Sharma and B. Krishna Prasad for the Appellant. V.R. Reddy, Rajindra Singhvi and Ashok Kumar Singh for the Respondent. JUDGMENT Arijit Pasayat, J. - Leave granted. 2. The interim order passed by a Division Bench of the Bombay High Court is under challenge by the Union of India and the Special Director, Enforcement Directorate, Ministry of Finance, Government of India. 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, f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... writ petition even before it was heard on merits. The final relief sought for itself, in substance, was granted by the interim order. There was clear violation of the provisions of Foreign Exchange Regulation Act, 1973 (in short the "FERA") and Foreign Exchange Management Act, 1999 (in short the "FEMA"). The Enforcement Directorate has clearly indicated in the notice the various infractions which led to such large scale illegal transactions of more than Rupees 270 crores. Respondent No. 1 (writ petitioner) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the writ petition is accorded to the writ petitioner even at the threshold by the interim protection, granted. 6. In the instant case, the High Court has not indicated any reason while giving interim protection. Though, while passing interim orders, it is not necessary to elaborately deal with the merits, it is certainly desirable and proper for the High Court to indicate the reasons which has weighed with it in granting such an extraordinary relief in the form of an interim protection. This, admittedly has 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 e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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