DISCO GARMENTS PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) BY way of this petition under Article 226 of the Constitution of India, the petitioners have, inter alia, challenged the order dated 09.09.1996 passed by the Additional Director General of Foreign Trade imposing fiscal penalty of Rs.10 lac (Annexure-F to the petition) and has also challenged the order dated 03.04.1998 passed by the Appellate Committee in Case No.10 (Annexure-I to the petition) whereby the fiscal penalty was reduced to Rs.5 lac instead of Rs.10 lac.

(2.) THE petitioners in this petition have, inter alia, prayed as under:

(3.) IT was stated that the Director of the petitioner-Company was in-charge of day-to-day affairs of the petitioner-Company. IT was further stated that in course of business petitioner No.2 met with a serious accident while at Zambia and had to undergo extensive treatment at Zambia as well as at Mumbai, more particularly during the months of June and July 1992. IT was stated that petitioner No.2 again met with an accident in the month of April 1996, which arrested his free movement and affected his physical and mental condition. IT was stated that in addition to this because of general slackness in the business and more particularly on the imports from India the same adversely affected the production activity of the petitioner-Company in India and hence, the petitioner-Company could not work to its fullest capacity and could not fulfill the export obligation.