TMI Blog2004 (7) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... Union of India [ 2003 (8) TMI 221 - SUPREME COURT OF INDIA ] an attempt should be made to make section 56 of the Act workable. It is possible to read down the provisions of section 56 to the effect that when a company is tried for commission of an offence under the Act, a judgment of conviction may be passed against it, but having regard to the fact that it is a juristic person, no punishment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng on behalf of the appellants, raised several contentions in support of the appeal; one of them being that having regard to the fact that as the offence is said to have been committed by a company; and as in terms of section 56 of the Foreign Exchange Regulation Act, 1973 (for short the Act ), the punishment of mandatory imprisonment has to be imposed; no criminal proceedings can be initiated ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t having allegedly taken place at the hands of the authorised dealer, that is, appellant No. 1 and, thus, although it is a company it is liable to be proceeded against. Section 56 of the Act provides for different punishments for commission of different offences. It is true that in an offence of this nature a mandatory punishment has been provided for but offences falling under other part of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erpretation of statute as may be necessary, keeping in view the doctrine of ut res magis valeat quan pereat. 5. In that view of the matter upon having recourse to the principle of purposive construction as has been held by a three-judge Bench of this court in Balram Kumawat v. Union of India [2003] 7 SCC 628 an attempt should be made to make section 56 of the Act workable. It is possible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es for certain consequences on the passing of an order of conviction and submitted that because the sentence of imprisonment cannot be imposed upon the company, the same may not mean that the company cannot be convicted. 8. We are of the opinion that the correctness of the decision of this Court in Velliappa Textiles Ltd. s case ( supra ) requires reconsideration by a Constitution Bench, and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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