Sabyasachi Mukharji, J. - (1.) The petitioner in this casa challenges two notices and orders issued under Section 19 (2) of the Foreign Ex-change Regulation Act. 1947. These are dated 3rd of May. 1969 and 31st May. 1969 respectively. In view of the contentions raised in this application it would be appropriate to set out the said two notices: (1) "No. Cal/1/66/AKRC/P.III/2586 Calcutta Blanch, 8. Lindsay Street. (2nd floor). Caicutta-16. Whereas for the purpose of the Foreign Exchange Regulation Act. 1947 (VII of 1947). the Central Government considers it necessary or expedient to obtain and examine the undermentioned documents in the possession of the Re gistrar of Companies. West Bengal-27, Brabourne Road. Narayani Building., Calcutta-1 or which in the opinion of the Central Government it is possible for the said Registrar of Companies. West Bengal 27. Brabourne Road. Narayani Building. Calcutta-1 to obtain and fur nish. Now. therefore, in exercise of the powers conferred by Sub-section (2) of Section 19 of the said Act. the Central Government hereby requires the said Registrar of Companies. West Bengal. 27, Brabourne Road, Narayani Building. Calcutta-1, to furnish or to obtain and furnish to the undersigned the said documents on receipt of this order. Particulars of documents required All documents seized by the officers Of the Company Law Department pursuant to the orders issued by the Chief Presidency Magistrate. Calcutta and the District Magistrate. Howrah. in July. 1984, under the provisions of the Companies Act. 1956. from: (i) M/s. New Central Jute Mills Co. Ltd. 11. Clive Row. Calcutta-1 and (ii) M/s. Ashoka Marketing Ltd., 18A. Brabourne Road, Calcutta-1. Dated at Calcutta this 3rd day of May. One thousand Nine Hundred and sixty-nine. To The Registrar of Companies. W. B., 27. Brabourne Road, "Narayani Building". Calcutta. Sd. (T. N. Kaul). 3-5-1969, Asst. Director. Enforcement Directorate. Ministry of Finance Department of Revenue and Insurance. Government of India. (sic) "No. CAL/1/66/AKRC/P.III/3324. Calcutta Branch, 8. Lindsay Street, (2nd floor). Calcutta-16 In exercise of the powers conferred by Sub-section (2) of Section 19 of the Foreign Exchange Regulation Act, 1947 (VII of 1947). the Central Government, vide Order No. CAL/1/66/AKRC/P.III/2586 dated 3-5-1969. required the Registrar of Companies. West Bengal. 27. Brabourne Road. Narayani Buildings. Calcutta-1, to furnish or to obtain and furnish the information and1 documents mentioned therein on receipt of the order--which the said Registrar of Companies. West Bengal, has not so far furnished. Now. therefore, the said Registrar of Companies. West Bengal, is required to furnish or to obtain and furnish the information and documents called for in Central Government's Order No CAL/1/ 66/AKRC/PIII/2586 dated 3-5-1969 with-out further delay. Dated at Calcutta this 3lst day of May. One thousand and nine hundred and sixty-nine. (Seal of the Ministry of Finance.....) Sd. (T. N. Kaul). Asst Director. Enforcement, Foreign Exchange Regulation Act. Ministry of Finance, Department of Revenue and Insurance Government of India, To The Registrar of Companies. West Bengal, Department of Company Affairs (Company Law Board). Naravani Building. 1st floor. 27, Brabourne Road Calcutta."
(2.) It appears that on 11th of April. 1963. there was an order passed under Section 237 (b) (i) (ii) of the Companies Act. 1956. appointing an Inspector to investigate the affairs of the petitioner-company. On 12th of June. 1964 another order under the aforesaid section was passed appointing another inspector alone with the previous Inspector to investigate the affairs of the company. On the 30th June. 1964 a similar order was passed. On 20th of July. 1964 Inspectors appointed as aforesaid seized large number of books, documents and papers pursuant to the warrants obtained by them from the Magistrates under Section 240-A of the Companies Act. 1956. On the 21st of July. 1964 an application was made under Article 226 of the Constitution of India by the petitioner-company challenging the appointment of the Inspectors as aforesaid and a Rule Nisi was issued and interim order was made. The said applies-tion was numbered as Matter No 272 oE 1964. On 23rd of July, 1964 there was variation of the interim order whereby the Inspectors were allowed to continue with the search and seizure for four day- and thereafter to keep all the seized books, papers and documents with the Registrar of Companies, West Bengal. It was provided that if the petitioner-company required the documents, books or papers, they would be at liberty to take back the same. On the 1st of April-1965 hearing of Matter Nq. 272 of 1964 was concluded before B. N. Banerjee. J. On 3rd of June. 1965 another application was made under Article 226 of the Constitution by the petitioner-company challenging the search and seizure made bv the said Inspectors and the said matter was numbered as Civil Rule No. 571(W) of 1965. In the aforesaid application the Magistrates who issued the search warrants were made parties. On 4th of August. 1965 judgment was delivered in Marter No. 272 of 1964 and the Rule obtained by the petitioner-company was discharged. On 29th of September. 1965 the petitioner preferred an appeal against the judgment as aforesaid and the Court of appeal made an order directing maintenance of status quo. On the 5th of March, 1968 judgment was delivered in C.P. No. 581 (W) of 1965 by B. N. Bauerjee J. quashing the warrants issued by the Magistrates authorising the Inspectors to conduct the search. It was provided in the order that it would suffer such modification as might be necessary after the appeal In the said Matter No. 272 of 1964 was disposed of. On 7th of March. 1969 the appeal preferred bv the petitioner-company in the said Matter No. 272 of 1964 was allowed bv the Appeal Court and the stay of operation of the order was isassed as against the respondents. Then between 18th of April. 1969 and 30th of April. 1969 the stay granted was extended. On 3rd of May, 1969 there was a notice under Section 19 (2) of the Foreign Exchange Regulation Act. 1947 served on the Registrar of Companies by the Assistant Director of Enforcement. This notice is the subject-matter of challenge in this application under Article 226 of the Constitution. On 3rd of May. 1969 four notices to show cause were issued by the Director of Enforcement to the petitioner for alleged contravention of Foreign Exchange Regulation Act. 1947, On the 7th May. 1969 stay granted in appeal from Matter No. 272 of 1964 at the instance of the Government was further extended. On the 31st of May. 1969 another notice and summons under Section 19 (2) of the Foreign Exchange Regulation Act, 1947 was served. This is also the subject-matter of challenge in this application. On 3rd of June. 1969 a letter was written by the Registrar of Companies to the Assistant Director of Enforcement Directorate stating that he could not part with the seized documents as the same were held by him pursuant to the orders of the Hon'ble Court. On the 5th of June, 1869 by a letter Registrar of Companies was required to comply with the notice issued under Section 19(2) of the Foreign Exchange Regulation Act. 1947. referred to hereinbefore on 5th of June. 1959 another summons was issued under Section 131 of the Income-tax Act. 1961, by the Income-tax Officer on the Registrar of Companies requiring him to produce all the Seized documents. The said summons was the subject-matter of challenge in Matter No. 378 of 1970. I will later refer the judgment delivered by me on 2nd of February, 1972 in respect of that application. On the 7th of June. 1969 the stay granted by the Appeal Court in Matter No. 272 of 1964 expired. On the 10th of June. 1969 notice of motion was taken by Shri A. P. Roy. Solicitor for the Registrar of Companies for directions regarding the return of the seized documents. The Appeal Court directed that notice of the said application to be served on the Assistant Director, Enforcement and the Income-tax Officer. On the 1st of July, 1969 the Government mentioned the matter before the Appeal Court for granting further stav of operation of the judgment passed in appeal from the said Matter No. 272 of 1964. The stay prayer was refused. On the 23rd of June, 1970 after affidavits had been filed an order was passed in respect of the application dated 10th June. 1969 by a Division Bench of this Court whereby liberty was given to the petitioner-company to challenge the said notices under Section 19 (2) of the Foreign Exchange Regulation Act. 1947. and the said summons under Section 131 of the Income-tax Act. 1961. served on the Registrar of Companies. On the 13th of July. 1970 the present application was made challenging the said two notices under Sec-tion 19 (2) of the Foreign Exchange Regulation Act, 1947.
(3.) In support of this application it was contended that in issuing the aforesaid notices there had been no application of mind by the authorities con--cerned. It was. secondly, contended that under Section 19 (2) of the Foreign Exchange Regulation Act. 1947. the order could only be passed bv the Central Government and the Assistant Director of Enforcement was a statutory authority created under the Act having specified functions and the Assistant Director of Enforcement had no power to issue these notices. It was. thirdly, contended that the action taken was mala fide and lastly, the Section 19 (2) of the Foreign Exchange Regulation Act, 1947. was ultra vires.;