S. Ravindra Bhat, J. - (1.) ISSUE notice. Mr. Sanjay Katyal, Advocate accepts notice; and states that no reply needs to be filed. With consent of the parties, the matter was heard for disposal.
(2.) SINCE all the writ petitions involve common questions of fact and law, they were heard for disposal, together. The petitioners are aggrieved by a common order dated 06.01.2009, whereby their applications for dispensation with the requirement of pre -deposit under Section 19(1) proviso of the Foreign Exchange Management Act was disposed. Briefly the facts are that the petitioners' Mr. Shagan Lal Arora and Mr. Suraj Kant Sood, constituted a firm in the name of M/s. Al -Madina Contracting Est. Company. The objective of the firm was to facilitate recruitment and forwarding of labour to prospective employers in Iraq and other Middle -East countries. It is claimed that after carrying -on business for some time, the said concern was dissolved on 01.06.1986. Five Show Cause Notices were issued by the respondent, Enforcement Directorate (ED) to the firm and its partners. The notices alleged inter alia that the firm had to receive sums in excess of more than Rs. 1,96,66,009/ -, which it did not, from principals abroad; and therefore contravened Section 18(1) of the Foreign Exchange Regulation Act, 1973. It was also alleged that they had acquired foreign exchange to the extent of Rs. 52,02,000/ - abroad from their principals; and that foreign exchange equivalent of Rs. 52,02,000/ - had been deposited unauthorisedly and in contravention of Section 8 of the FERA, 1973. The two notices to the partners also contained connected allegations.
(3.) THE individuals as well as the firm resisted the notice. On 28.06.1999, the adjudicating authority, i.e. the Special Director of Enforcement Directorate apparently issued an ex -parte order imposing penalty of Rs. 50 lakhs for the charges leveled in the first Show Cause Notice and Rs. 13 lakhs each for the second and third Show Cause Notices against the firm. Thus, a total sum of Rs. 76 lakhs was directed to be paid by the firm. Mr.Shagan Lal Arora, ex -partner of the firm filed Appeal No. 327/1999 before the Tribunal. The other partner also preferred an Appeal No. 376/1999 against the same order, on behalf of the firm.;