K.V. Abdul Khader V. Assistant Director, O/O the Joint Director, Directorate of Enforcement, Foreign Exchange Management Act, Govt. of India and Special Director (Appeal), Commissioner of Income Tax (Appeals)-V

WP(C)/8392/2016

AI Insights

The case involves K.V. Abdul Khader, the petitioner, who challenged the recovery steps initiated against him under the Foreign Exchange Management Act, 1999, following an adjudication order (Ext.P3) by the Assistant Director, Directorate of Enforcement. The petitioner had filed an appeal (Ext.P4) and a stay petition (Ext.P5) with the Special Director (Appeal), Commissioner of Income Tax (Appeals)-V, which were not considered before the recovery steps were initiated. The High Court's intervention was sought to halt these recovery actions pending the decision on the stay petition.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 799109 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 04-03-2016
• Assessment Year: misc
• Laws Referred To: Foreign Exchange Management Act, 1999
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: N NAGRESH; C G PREETHA; K M V PANDALAI
• Assessee Lawyers: S RAJ; C T SUJA
• Keywords: Adjudication order; Foreign Exchange Management Act; Recovery Steps; Stay Petition
• Section: P3

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 4TH DAY OF MARCH 2016/14TH PHALGUNA, 1937 WP(C).No. 8392 of 2016 (Y) --------------------------- PETITIONER(S): -------------------------- K.V. ABDUL KHADER, S/O.LATE KUNHIMON, KARUPPAM VEETTIL HOUSE, PANCHAVATI, EDAKKAZHIYOOR P.O., CHAV AKKAD, THRISSUR-680 515. BY ADVS.SRI.S.ARUN RAJ, SMT.C.T.SUJA. RESPONDENT(S): ---------------------------- 1. ASSISTANT DIRECTOR, O/O THE JOINT DIRECTOR, DIRECTORATE OF ENFORCEMENT, FOREIGN EXCHANGE MANAGEMENT ACT, GOVT. OF INDIA, KANOOS CASTLE, MULLASSERY CANAL WEST ROAD, COCHIN-682 011. 2. SPECIAL DIRECTOR (APPEAL), COMMISSIONER OF INCOME TAX (APPEALS)-V, MAIN BUILDING, 2ND FLOOR, NO.222, 121, M.G. ROAD, NUNGAMBAKKAM, CHENNAI-34. R1 BY ADV. SRI.N.NAGARESH, ASSIST. S.G. OF INDIA. ADV. SMT.C.G.PREETHA, CGC. R2 BY ADV. SRI.K.M.V.PA NDALAI, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04-03-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs. WP(C).No. 8392 of 2016 (Y) APPENDIX PETITIONER'S EXHIBITS:- P1 : TRUE COPY OF THE SHOW CAUSE NOTICE DTD 16-11-2012 ISSUED BY THE DEPUTY DIRECTOR, DIRECTORATE OF ENFORCEMENT, COCHIN TO THE PETITIONER. P2 : TRUE COPY OF THE REPLY DTD 20-12-2012 TO THE SHOW CAUSE NOTICE SUBMITTED BY THE PETITIONER. P3 : TRUE COPY OF THE ADJUDICATION ORDER DTD 16-07-2015 PASSED BY THE 1ST RESPONDENT AGAINST THE PETITIONER. P4 : TRUE COPY OF THE APPEAL MEMORANDUM FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. P5 : TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. P6 : TRUE COPY OF THE RECEIPT DTD 11-09-2015 ISSUED BY THE ASSISTANT DIRECTOR, DRAWING AND DISBURSING OFFICER, DIRECTORATE OF ENFORCEMENT, GOVT. OF INDIA, CHENNAI-600 006, TO THE PETITIONER. P7 : TRUE COPY OF THE DEMAND NOTICE DTD 17-12-2015, 07-01-2016 AND 11-02-2016 ISSUED BY 1ST RESPONDENT. RESPONDENT'S EXHIBITS:- NIL. //TRUE COPY// P.S. TO JUDGE rs. A.K.JAYASANKARAN NAMBIAR, J. =========================================== W.P.(C). No. 8392 of 2016 ===================================================== Dated this the 4th day of March, 2016 JUDGMENT Against Ext.P3 adjudication order passed under the Foreign Exchange Management Act, 1999, the petitioner preferred Ext.P4 appeal and Ext.P5 stay petition before the 2nd respondent. It is the case of the petitioner that even before the consideration of the stay petition by the 2nd respondent, recovery steps have been initiated for recovery of the amounts confirmed against the petitioner by Ext.P3 order. 2. I have heard the learned counsel appearing for the petitioner as also the learned Government Pleader appearing for the respondents. On a consideration of the facts and circumstances of the case and the submissions made across the bar, I dispose the writ petition with a direction to the 2nd respondent to consider and pass orders on Ext.P5 stay petition preferred by the petitioner before him, within a period of one month from the date of receipt of a copy of this judgment, after hearing the petitioner. Recovery steps for recovery of amounts confirmed against the petitioner by Ext.P3 -2- W.P.(C). No. 8392 of 2016 order, shall be kept in abeyance till such time as the 2nd respondent passes orders as directed and communicates the same to the petitioner. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE das /04.03.2016 "