Case Note & Summary
The petitioner, Leena N. Parekh, filed a Criminal Writ Petition seeking directions for the release of a bank guarantee executed in January 2000 and refund of sums of Rs.40,100/- and Rs.1,09,847/- from the Enforcement Directorate (Respondent No.1) and the State of Maharashtra (Respondent No.3). The background involves adjudication proceedings initiated against the petitioner under the Foreign Exchange Regulation Act, 1973 (FERA). Dissatisfied with the delay in disposal of those proceedings, the petitioner had earlier filed Criminal Writ Petition No.377 of 1999, wherein an interim order dated 22.12.1999 was passed directing Respondent No.1 to release Rs.1,09,847/- to the petitioner subject to her furnishing a bank guarantee from a nationalised bank in favour of Respondent No.1. The petitioner executed the bank guarantee on 12.12.2000, and the amount was deposited by Respondent No.1 with Respondent No.2 (Indian Overseas Bank) to the petitioner's credit but later returned due to the bank guarantee. Subsequently, the adjudication proceedings were disposed of by the Competent Authority, and Writ Petition No.377 of 1999 was disposed of on 3.4.2000. In the adjudication, a penalty was levied on the petitioner, who appealed. The present petition was filed for release of the bank guarantee and refund of amounts. The court, after hearing the parties, held that upon completion of the adjudication proceedings, the petitioner is entitled to the return of the bank guarantee and the amount deposited as security, subject to any outstanding dues. The court directed the respondents to release the bank guarantee and refund the amounts to the petitioner.
Headnote
A) Criminal Law - Bank Guarantee - Release of Security - Foreign Exchange Regulation Act, 1973 - Petitioner sought release of bank guarantee executed in January 2000 and refund of Rs.40,100/- and Rs.1,09,847/- - Court held that upon completion of adjudication proceedings, the petitioner is entitled to return of the bank guarantee and the amount deposited as security, subject to any outstanding dues - Held that the bank guarantee and amount be released to the petitioner (Paras 1-5).
Issue of Consideration
Whether the petitioner is entitled to release of the bank guarantee and refund of the amount deposited pursuant to an interim order after the conclusion of adjudication proceedings under the Foreign Exchange Regulation Act, 1973.
Final Decision
The court allowed the petition and directed the respondents to release the bank guarantee and refund the amounts of Rs.40,100/- and Rs.1,09,847/- to the petitioner.
Law Points
- Bank guarantee
- refund of amount
- Foreign Exchange Regulation Act
- 1973
- adjudication proceedings
- interim order
- release of security
