Pratap Kumar Ray,J. - (1.) In the instant writ application the writ petitioners, namely, the Grindlays Bank and its two officers have assailed Memorandum No. T-4/1/ SU.81(SCN), dated 11-6-1981, issued by the Special Director, Enforcement Directorate (Foreign Exchange Regulation Act), Government of India, whereby the writ petitioners were directed to show cause as to why the adjudication under Section 23D of the Foreign Exchange Regulation Act, 1947 (the FERA, 1947), for violation of Section 10(1)(a) of the FERA 1947, due to delay to repatriate the sum of Rs. 15,02,351 as determined by the income-tax authorities on reassessment of the earlier assessment as made finally relating to the assessment years 1949-50 to 1959-60 and the decision of holding 'adjudication proceeding' as contemplated under Section 51 of the Foreign Exchange Regulation Act, 1973, (FERA 1973) issued by the competent authority being dissatisfied with the reply of said memorandum.
(2.) Rule issued and interim order of injunction in terms of prayer (f) was passed ex parte on 10-8-1984, by A.K. Sengupta, J. till 15-9-1984, upon granting leave to the respondents to apply for variation, vacating the interim order. However, after the expiry of such interim order, by order dated 18-9-1984, A.K. Sengupta, J. allowed the interim order as earlier passed to continue until further orders. In view of such, the entire proceedings has been kept pending. The affidavit-in-opposition, has been filed by the respondent No. 3, the Reserve Bank of India (RBI) but no affidavit-in-opposition has been filed by the respondent Nos. 1 and 2, namely, the Union of India and the Special Director of Enforcement under the Foreign Exchange Regulation Act, Affidavit-in-reply has been filed by the writ petitioners.
(3.) The facts of the writ petition are to this effect. The writ petitioner-bank is running the business of banking all over the world having its head office at London. There are different branches in different countries including the one here in India. On account of head office expenses at London, the decision was reached by the banking authorities to distribute such expenses to the different banks situated all over the world on proportionate basis as per the formula : Territorial management expenses ---------------------- x Head office general charges Total Global management expenses;