Case Note & Summary
The Union of India filed a Civil Application under Section 5 of the Limitation Act, 1963 seeking condonation of a 570-day delay in filing an appeal against an order dated 30 September 2008 passed by the Appellate Tribunal for Foreign Exchange. The underlying dispute involved a show cause notice issued to M/s. Reliance Industries Ltd on 27 July 2001 for alleged violations of the Foreign Exchange Regulation Act, 1973 (FERA). The Special Director of Enforcement adjudicated the matter on 30 October 2003 and imposed no penalty. The Union of India filed a revision before the Appellate Tribunal, which was dismissed on 30 September 2008. The Union received the order on 24 November 2008 but filed the appeal in the High Court only on 6 August 2010, resulting in a delay of 570 days. The court examined the sunset provisions under Section 49 of the Foreign Exchange Management Act, 1999 (FEMA), which allowed a two-year period from 1 June 2000 for taking cognizance of offences under the repealed FERA. The notice was issued within that period. The court considered the explanation for the delay, which cited administrative procedures, movement of files between departments, and the need for legal opinion. The court held that the explanation did not constitute 'sufficient cause' as required under Section 5 of the Limitation Act. The court noted that the Union of India, being a large organization, must exercise diligence and cannot rely on routine administrative delays. The application for condonation of delay was dismissed, and consequently, the appeal was also dismissed as time-barred.
Headnote
A) Limitation Act - Condonation of Delay - Sufficient Cause - Section 5 of Limitation Act, 1963 - The court considered whether the Union of India had shown sufficient cause for condoning a delay of 570 days in filing an appeal against an order of the Appellate Tribunal for Foreign Exchange. The explanation of administrative delays and movement of files was held to be insufficient. The court emphasized that the expression 'sufficient cause' must be construed liberally but the applicant must show that the delay was not due to negligence or lack of bona fides. (Paras 1-7) B) Foreign Exchange Management Act - Sunset Provision - Section 49(3) of FEMA, 1999 - The court noted that under the sunset provision, a period of two years was prescribed for taking cognizance of an offence under the repealed FERA, 1973. The notice to show cause was issued within that period. (Para 2) C) Foreign Exchange Management Act - Appeal - Limitation - Section 49(5) of FEMA, 1999 - The court observed that appeals under the repealed Act stood transferred to the Appellate Tribunal under FEMA. The appeal before the High Court was governed by the Limitation Act. (Paras 4-5)
Issue of Consideration
Whether the delay of 570 days in filing the appeal should be condoned.
Final Decision
The Civil Application for condonation of delay is dismissed. Consequently, the appeal (FERAST No.22607 of 2010) is also dismissed as time-barred.
Law Points
- Condonation of delay
- Sufficient cause
- Limitation Act
- Section 5
- FERA sunset provisions
- Section 49 FEMA
