Thirumalai Chemicals Ltd vs Union Of India & Ors

The Supreme Court ruled that the Appellate Tribunal under the Foreign Exchange Management Act, 1999 (FEMA) incorrectly applied the first proviso to sub-section (2) of Section 52 of the Foreign Exchange Regulation Act, 1973 (FERA) instead of the relevant provisions of FEMA when rejecting a belated appeal. The Court emphasized that the provisions of FEMA should govern the appeal process, particularly Section 19, which allows for appeals against penalties imposed under FEMA. The Court held that the Company was entitled to a fair hearing and that the appeal should not have been dismissed on technical grounds, thereby allowing the appeal and setting aside the Tribunal's order.