High Court upholds Special Judge's FEMA jurisdiction; directs notification disregard, case continuation, and prompt trial

The High Court upheld the notification authorizing a Special Judge to try cases under the Foreign Exchange Management Act (FEMA). It determined that the Court had the jurisdiction to transfer criminal cases to another competent court within its jurisdiction. The Court found that the notification, issued in line with the Full Court's decision, did not affect the Special Judge's jurisdiction. Consequently, the Court directed that the notification be disregarded, allowing the proceedings before the Special Judge to continue as per the law, vacating the interim order and instructing the trial court to proceed promptly with the case.

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Issues:
Challenge to the notification authorizing a Special Judge to try cases under FEMA.

Analysis:
The petitioners challenged a notification dated 17.05.2002 issued by the State Government, authorizing a Special Judge to try cases under the Foreign Exchange Management Act (FEMA). The petitioners argued that the State Government lacked jurisdiction to confer such authority to the Special Judge. They contended that there was no provision in the Criminal Procedure Code (Cr.P.C.), FEMA, or the Foreign Exchange Regulation Act (FERA) allowing such jurisdictional transfer. The petitioners also raised concerns about losing the right to appeal before the Session Court due to the transfer of the case to the Special Judge.

The High Court examined the legal provisions under Section 407 of the Cr.P.C., Article 227, and Article 235 of the Constitution of India. It concluded that the Court had the jurisdiction to transfer criminal cases from one competent court to another within its jurisdiction. The Court emphasized its administrative and judicial powers to issue directions regarding the jurisdiction of particular courts for specific types of cases. The decision of the Full Court empowering the Special Judge to try cases under FERA/FEMA was noted and not challenged.

The Court held that the impugned notification, issued in line with the Full Court's decision, did not affect the Special Judge's jurisdiction to try the criminal complaint under FERA. Therefore, the Court found no grounds for interference in the case. It directed that the notification be ignored, and the proceedings before the Special Judge continue in accordance with the law. The interim order from 17.05.2002 was vacated, and the trial court was instructed to proceed with the case without undue delay.

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