THIRUMALAI CHEMICALS LTD. vs UNION OF INDIA .

The Supreme Court ruled that the Appellate Tribunal under the Foreign Exchange Management Act, 1999 (FEMA) incorrectly applied the first proviso to Section 52 of the Foreign Exchange Regulation Act, 1973 (FERA) instead of the relevant provisions of FEMA regarding the belated appeal. The Court emphasized that the provisions of FEMA should govern the appeal process, and the Company was entitled to a fair hearing regarding the penalties imposed under Sections 8(3) and 8(4) of FERA read with Section 49 of FEMA. The Court held that the appeal should be considered on its merits, allowing the Company to contest the penalties imposed by the Directorate of Enforcement.