The Special Director And Anr vs Mohd. Ghulam Ghouse And Anr

The Supreme Court held that the Bombay High Court erred in granting interim relief against a show cause notice issued under the Foreign Exchange Regulation Act, 1973 (FERA) and the Foreign Exchange Management Act, 1999 (FEMA). The Court emphasized that writ petitions challenging show cause notices should not be entertained unless there is a clear lack of jurisdiction. The Court set aside the interim order, reinforcing the principle that parties should respond to show cause notices and raise their defenses before the authority rather than seeking premature judicial intervention.