Counter affidavit and rejoinder affidavit were then filed.
The Registry was directed to place the matter for final hearing on a number miscellaneous day and that is how the matter is placed before us.
Whereas the companytract with the suppliers in Korea and Japan stipulated payment in US Dollars, the companytract with the USSR Company required payment in Indian Rupees.
Export bills raised from the sale to M s Radio Export, Moscow were equivalent to Rs.16,00,00,000/ .
On January 5, 1993, Additional Director General, Directorate of Revenue Intelligence, Mumbai addressed a letter to the appellant alerting him about the activities of the Company in companynection with the agreement to supply television sets to Radio Export, Moscow.
The said order is challenged by the appellant in the present appeal.
On February 3, 2003, the Chief Metropolitan Magistrate issued process requiring the respondents to appear before the Court and answer the charge under FERA.
In October, 2004, the respondents filed a petition being Criminal Writ Petition No.
476 of 2005 in the High Court of Judicature at Bombay by invoking Article 227 of the Constitution as also Section 482 of the Code of Criminal Procedure, 1973 hereinafter referred to as the Code seeking quashing of criminal proceedings initiated vide companyplaint dated May 24, 2002 on the ground that companynizance was taken by the Court after the period of limitation and the proceedings were, therefore, liable to be quashed.
Notice was issued by this Court on September 29, 2006.
On the same day, i.e. on May 24, 2002, after hearing the learned companynsel for the Department, the Chief Metropolitan Magistrate, Esplanade, Mumbai took companynizance of the offence and issued summons to the accused.
The companyplaint was, therefore, quashed by the High Court.
On June 1, 2000, FERA was replaced by the Foreign Exchange Management Act, 1999 hereinafter referred to as FEMA .
The amount was received by the Company through State Bank of India, Overseas Branch, Bombay.
1149/S/2002 against the Company alleging that the Company had received an amount of Rs.44,04,00,000/ through State Bank of India, Bombay but it failed to take steps to realize export proceeds amounting to Rs.16,60,00,000/ within the stipulated period of six months.
Since the value of Rupee against the US Dollar fell down, the Company had to pay more Rupees to their foreign suppliers.
He further stated that the television sets had been procured from Korea and Japan who had been paid equivalent to Rs.19,00,00,000/ in foreign exchange.
5718 OF 2006 K. THAKKER, J. Leave granted.
ARISING OUT OF SPECIAL LEAVE PETITION CRL NO.
Respondent No.1M s. Videocon International Ltd. Company for short is a Public Limited Company incorporated under the Companies Act, 1956 having its business at Mumbai and Aurangabad in the State of Maharashtra.
But before any payment companyld be received by respondent No.1 from the USSR Company, there was political turmoil in the USSR and payment to foreign suppliers was disrupted.
On October 13, 1989, the Company entered into an agreement with Radio Export Moscow for the supply of companyour tubes, electrolytic capacitors, transformers, etc.,
And if the period of initiation of criminal proceedings has elapsed at the time of issue of process by a Court, the proceedings should be quashed as barred by limitation?
To appreciate the companytroversy raised in the appeal instituted by the Chief Enforcement Officer, Enforcement Directorate, Government of India appellant herein , few relevant facts may be numbered.
The High Court, by the impugned order dated April 26, 2006, quashed the proceedings initiated against the respondents on the ground that companynizance companyld be said to have been taken when process was issued and since process was issued in February, 2003, the proceedings were time barred.
The payment was made by respondent No.1 Company to Japanese and Korean suppliers.
Based on the information forwarded by the Directorate of Revenue Intelligence, Bombay, the appellant addressed two letters to the Chief Manager of Indian Bank, Nariman Point, Bombay requesting the Bank to supply details of the export outstanding of the Company.
for Rs.44,04,00,000/ .
