Jurisdictional objection to a show cause notice to be decided first by the adjudicating authority before writ review

A show cause notice under Section 51 of the Foreign Exchange Regulations Act, 1973 was treated as a preliminary procedural step, so the jurisdictional objection was to be raised first before the adjudicating authority. The authority was directed to decide that objection as a preliminary issue, while the writ petition was not examined on merits. Questions of delay and laches were expressly left open.

---

---

Issues: Whether the writ petition challenging a show cause notice ought to be entertained, or whether the petitioners should be permitted to raise the jurisdictional objection before the adjudicating authority in the first instance.

Analysis: The notice under Section 51 of the Foreign Exchange Regulations Act, 1973 was only a show cause notice. In view of that procedural stage, the petitioners were granted liberty to raise the jurisdictional objection as a preliminary issue before the adjudicating authority, and the authority was directed to decide that issue. The questions of delay and laches were expressly left open.

Conclusion: The writ petition was not decided on merits and the petitioners were relegated to the adjudicating authority to pursue the jurisdictional objection at the preliminary stage.

---