TMI Blog2013 (10) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. - Writ Petition (L) No. 2303 of 2013 - - - Dated:- 26-9-2013 - Mohit S Shah And M S Sanklecha, JJ. For the Appellant : Mr. Vikram Nankani with Mr. Sushanth Murthy i/b. Naresh S. Thacker For the Respondent : Mr. Salil M. Shah, Mr. Venkatesh Dhond, Senior Adv with Amol Barve and Parag Sharma JUDGEMENT:- Heard learned counsel for the parties. Rule, returnable on 18 November 2013. There shall be interim stay of the impugned communication dated 17 October 2012 (Exhibit Q1 to Q4) and the impugned order dated 7 August 2013 (Exhibit R) to the petition. 2. Mr. Dhond, learned Senior counsel for RBI submits that the impugned communication dated 17 October 2012 ought to have been challenged at the relevant time and there has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent Authority has merely observed that at this stage, it was not inclined to grant an order of compounding having regard to the sensitive nature of the contravention and was of the view that the matter will have to be further investigated by the Directorate of Enforcement. This is a reasonable and bona fide exercise of power. Consequently, we dispose of this petition with the clarification that it would be open to the Reserve Bank of India, at the appropriate stage, upon the conclusion of the investigation by the Directorate of Enforcement to take a final view on the nature of the contravention and to determine as to whether the contravention is of a nature such that it can be compounded under Section 15 of the Foreign Exchange Management ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany without equity participation by the Indian party. Therefore instead of furthering the case of the Noticees, the Circular only gives credence to the allegation that the investment by the noticees was in contravention. 5. The learned counsel for the petitioners submits that if the impugned order is not stayed, the time limit to file appeal for challenging the impugned order will expire on 30 September 2013 and thereafter the petitioners will not be able to avail of the compounding in view of the provisions of Rule 11 of the Foreign Exchange (Compounding Proceedings) Rules, 2000, which reads as under:- 11. No contravention shall be compounded if an appeal has been filed under Section 17 or 19 of the Act. Learned Senior couns ..... X X X X Extracts X X X X X X X X Extracts X X X X
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