Supreme Court of India · 1969-07-23
RAYALA CORPORATION (P) LTD. & ORS. vs DIRECTOR OF ENFORCEMENT, NEW DELHI
- Citation / case number
- SC 1969/60106
- Court
- Supreme Court of India
- Petitioner
- RAYALA CORPORATION (P) LTD. & ORS.
- Respondent
- DIRECTOR OF ENFORCEMENT, NEW DELHI
- Author
- SHELATM.,BHARGAVA, VISHISHTHA,VAIDYIALINGAM, C.A.,HEGDE, K.S.,GROVER, A.N.
- Bench
- SHELAT, J.M.,BHARGAVA, VISHISHTHA,VAIDYIALINGAM, C.A.,HEGDE, K.S.,GROVER, A.N.
Judgment text excerpt
The Supreme Court addressed the validity of proceedings under Section 23(1)(b) of the Foreign Exchange Regulation Act, 1947, holding that the section does not provide clear principles for determining when to proceed under it versus Section 23(1)(a), thus violating Article 14 of the Constitution. The Court also ruled that the Director of Enforcement failed to comply with the requirements of the proviso to Section 23D(1) regarding the adequacy of penalties before launching prosecution. Consequently, the Court quashed the proceedings against the appellants for contravening Sections 4(1) and 9 of the Act and the Defence of India Rules, 1962.