P.V. MOHAMMAD BARMAY SONS vs DIRECTOR OF ENFORCEMENT

The Supreme Court held that the penalties imposed under Sections 5(1)(a) and 5(1)(b) of the Foreign Exchange Regulation Act, 1947, were valid despite the repeal of the Act by the Foreign Exchange Regulation Act, 1973. The Court clarified that actions taken under the repealed Act could still be enforced if they were initiated before the new Act came into force, as per Section 81 read with Section 6(e) of the General Clauses Act. The appeal was dismissed, affirming the reduced penalty of Rs. 37,500 imposed by the Appellate Board.