J.V. Gupta, J. - (1.) THIS judgment will dispose of S.A.O. No. 17 of 1978 and S.A.O. No. 69 of 1978, as both arise out of one chain transaction.
(2.) IN the first instance, both these cases came up before S. P. Goyal, J. for hearing but his Lordship looking to the importance of the matter, has referred them for decision by a larger Bench. It Is how this matter has come before us. Brief facts of the case necessary for its decision are contained in the statement of one Mehnga Ram, the relevant extract of which reads as under: In this connection I want to state that her father Sohan Dass who is residing abroad for the last 25 years owns 8 Acres of agricultural land. This land is being tilled by her uncle Shri Phidu Ram, son of Shri Swan Ram of village Lallian Khurd. On instructions of Shri Sohan Dass, Phidu Ram gave to Smt. Banso sale proceeds of agricultural income of eight Acres of land. The said Rs. 10,000 credited to the account of Smt. Banso on 7th September, 1974 is the amount given by Phidu Ram to Smt. Banso being the agricultural income.... The balance of Rs. 8,541.50 was the amount given to her by Phidu Ram her uncle on instructions of Sohan Dass living abroad during the period October, 1974 to April, 1975.... Rs. 1,000 given to her by the said Phidu Ram in the month of May/June, 1975 on the instructions of Sohan Dass being the agricultural income of his land. Shrimati Banso Devi also signed the said statement with the following confirmation: I, Smt. Banso, wife of Ram Parkash d/o Sohan Dass, am present today in response to your summons dated 29th May, 1976, /received by me through my father -in -law Mehnga Singh. I am an illiterate lady. Whatever statement my father -in -law Mehnga Ram gave on my behalf today which [has been written by my husband's cousin, has been explained to me fully and I agree. As regards Shri Phidu Ram, he in his affidavit filed on 8th December, 1976, stated, inter alia: That my said younger brother Shri Sohan Dass while leaving for U.K. about twenty years ago desired that said land be cultivated by me and the income from the produce thereof be equally divided between him and his only daughter Smt. Banso Devi, that is, my niece. That during the years 1974 and 1975, I have paid to my niece Shrimati Banso Devi about Rs. 21,000 being her share of income from the land left over by her father, Shri Sohan Dass.
(3.) THE Assistant Director, Enforcement, in the case of Shri -mati Banso Devi came to the conclusion that she has received a total sum of Rs. 20,641.50 from Phidu Ram and Karam Chand, otherwise than through authorised dealers, by order and on behalf of her father Sohan Dass, a resident in England, in contravention of the provisions of Section 9(1)(b) of the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as the Act) whereas in the case of Shri Phidu Ram it has been found that he has made these payments by order or on behalf of Shri Sohan Dass, in contravention of the provisions of Section 9(1)(d) of the Act. Consequently, under Section 50 of the Act, he imposed a penalty of Rs. 10,000 on Shrimati Banso Devi and a penalty of Rs. 4,000 on Phido Ram, - -vide separate orders, dated 28th October, 1976 and 31st August, 1977, respectively.;