NEULAND LABORATORIES LIMITED HYDERABAD Vs. DEPUTY DIRECTOR ENFORCEMENT DIRECTORATE
LAWS(APH)-2002-10-48
HIGH COURT OF ANDHRA PRADESH
Decided on October 22,2002

NEULAND LABORATORIES LIMITED, HYDERABAD Appellant
VERSUS
DEPUTY DIRECTOR, ENFORCEMENT DIRECTORATE, GOVERNMENT OF INDIA, BANGALORE Respondents

JUDGEMENT

AR.Lakshmanan, C.J. - (1.) Heard Mr. C.R. Sridharan for the appellants and Sri C.V. Ramulu, for the respondent.
(2.) This Appeal is directed against the order passed by this Court in Writ Petition No. 20495 of 2002 even before admission on 11-10-2002. The order reads as follows: "AND WHEREAS the High Court upon hearing the arguments of Mr. C.R. Sridharan, Advocate for the petitioner directed issue of notice to the Respondent herein to show cause why this writ petition should not be admitted in the circumstances set out in the petition and the affidavit filed in writ petition. You viz; The Deputy Director, Enforcement Directorate (Foreign Exchange Management Act, 1999) Government of India, No. 9/1 Madras Bank Road, (Behind India Garage) Bangalore- 560 001 are directed to show cause as to why in the circumstances set out in the petition and the affidavit filed therewith (copy enclosed) this writ petition should not be admitted. The court while directing to post the matter immediately after Dassera Vacation, ordered that in the meanwhile the operation of the impugned order No. DD/15/Hyd/202 (DD-VS) dated 22-8-2002 passed by the Deputy Director, Enforcement Directorate (Foreign Exchange Management Act, 1999) Government of India be and hereby is stayed on condition that the petitioner deposits an amount of Rs. 2,50,000.00 (Rupees two lakhs and fifty thousand only) within a week from the date of this order." In our opinion, the learned Judge ought not to have imposed the condition directing the appellant- petitioner to deposit a part of the amount of penalty. The writ petition is yet to be admitted and the rule nisi is yet to be issued. Under such circumstances, this order, in our opinion, is premature and improper at this stage. 50% of the amount directed to be deposited within a week is neither a disputed tax nor any other liability cast on the appellants/petitioners, but only penalty imposed by the respondent, which according to the appellant has been made without giving any valid and cogent finding as to the conduct of the appellant petitioner attracting such a severe penal action against them, which is what has been challenged in the writ petition. We, therefore set aside the order dated 11-10-2002 and place the matter for admission before the concerned Honourable Judge. It is for both the parties to appear before the learned Judge and obtain appropriate orders.
(3.) The Writ Appeal is disposed of accordingly. No costs.;


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