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        Case ID :

        1965 (10) TMI 63 - SC - FEMA

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        Procedural amendment in foreign exchange enforcement may apply to past contraventions where no vested right to a particular trial forum exists. A procedural amendment shifting specified Foreign Exchange Regulation Act contraventions from trial by Magistrate to adjudication by the Director of ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Procedural amendment in foreign exchange enforcement may apply to past contraventions where no vested right to a particular trial forum exists.

                          A procedural amendment shifting specified Foreign Exchange Regulation Act contraventions from trial by Magistrate to adjudication by the Director of Enforcement was treated as applying to pending alleged past contraventions, because no person has a vested right to be tried by a particular court or under a particular procedure. The absence of an express retrospective clause did not matter for this procedural change, and no criminal appellate right was displaced. The amended penalty provision also did not violate Article 20(1), as it was construed as prescribing only a maximum penalty and not increasing punishment beyond the earlier law. The High Court's quashing order was set aside and the writ petition dismissed.




                          Issues: (i) whether the amended adjudication scheme under section 23(1)(a) and section 23D of the Foreign Exchange Regulation Act, 1947 operated retrospectively so as to apply to a contravention alleged to have been committed before the amendment, and whether the accused had a vested right to be tried only by an ordinary criminal court; (ii) whether section 23(1)(a), as amended, offended Article 20(1) of the Constitution by prescribing a higher or minimum penalty for the past offence.

                          Issue (i): whether the amended adjudication scheme under section 23(1)(a) and section 23D of the Foreign Exchange Regulation Act, 1947 operated retrospectively so as to apply to a contravention alleged to have been committed before the amendment, and whether the accused had a vested right to be tried only by an ordinary criminal court.

                          Analysis: The amended provisions shifted adjudication in specified cases from criminal trial by a Magistrate to inquiry and penalty adjudication by the Director of Enforcement. The governing principle applied was that no person has a vested right in any particular course of procedure, and a person accused of an offence has no fundamental right to be tried by a particular court or under a particular procedure unless some constitutional bar is shown. The change was treated as procedural in nature and did not impair any substantive or vested right. The absence of an express statement of retrospectivity did not matter for a procedural amendment, and no appellate right under the Criminal Procedure Code was affected because no prosecution under that Code had been commenced.

                          Conclusion: The amended procedure applied to the alleged contravention, and the challenge based on vested right and retrospectivity failed.

                          Issue (ii): whether section 23(1)(a), as amended, offended Article 20(1) of the Constitution by prescribing a higher or minimum penalty for the past offence.

                          Analysis: The amended provision was construed as prescribing only a maximum penalty, not a minimum one. The words used did not authorise punishment greater than what could have been imposed under the earlier provision, and therefore the amendment did not increase the penal liability in a manner prohibited by Article 20(1).

                          Conclusion: The challenge under Article 20(1) failed.

                          Final Conclusion: The appeal succeeded, the High Court's order quashing the adjudication proceedings was set aside, and the writ petition stood dismissed.

                          Ratio Decidendi: A procedural amendment that changes the forum or mode of adjudication does not create a vested right to trial by a particular court, and an amended penal provision does not offend Article 20(1) unless it actually increases punishment beyond what the earlier law permitted.


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