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of <h1>Supreme Court: FEMA Appellate Tribunal, not Special Director, hears FERA appeals. Legislative intent for single appellate authority.</h1> <h3>Union of India & Others Versus M/s Premier Limited (Formerly Premier Automobiles Ltd.) & Others</h3> Union of India & Others Versus M/s Premier Limited (Formerly Premier Automobiles Ltd.) & Others - [2019] 213 Comp Cas 1 (SC), 2019 (365) E.L.T. 657 (SC) Issues Involved:1. Jurisdiction of the Special Director (Appeals) under FEMA.2. Applicability of FERA provisions post-repeal.3. Proper appellate authority for orders passed under Section 51 of FERA.Detailed Analysis:1. Jurisdiction of the Special Director (Appeals) under FEMA:The core issue was whether the Special Director (Appeals) had jurisdiction to hear appeals against orders passed under Section 51 of FERA. The High Court had previously ruled that such appeals were maintainable before the Special Director (Appeals). However, the Supreme Court disagreed, emphasizing that appeals against orders passed under Section 51 of FERA should be heard by the Appellate Tribunal under Section 19 of FEMA. The Court reasoned that the legislature did not intend to create two separate appellate authorities under FEMA for similar orders, as doing so would lead to an illogical and anomalous situation.2. Applicability of FERA provisions post-repeal:The case involved the transition from FERA to FEMA and the applicability of FERA provisions after its repeal. The Court noted that FERA was repealed and replaced by FEMA on 01.06.2000. Section 49(5)(b) of FEMA provided that appeals pending before the Appellate Board under FERA should be transferred to the Appellate Tribunal under FEMA. The Court held that this legislative intent indicated that all appeals, whether filed before or after the repeal of FERA, should be heard by the Appellate Tribunal under FEMA.3. Proper appellate authority for orders passed under Section 51 of FERA:The Court examined the relevant provisions of both FERA and FEMA to determine the appropriate appellate authority. It concluded that any appeal filed after 01.06.2000 against an order passed under Section 51 of FERA should lie before the Appellate Tribunal under Section 19 of FEMA. The Court reasoned that the legislature did not intend to provide two separate appellate authorities for similar orders and that such a distinction would not stand for any logical reason. The Court also noted that the Special Director (Appeals) is subordinate in hierarchy to the Appellate Tribunal, and it would be illogical to have one appeal before the Appellate Tribunal and another before the Special Director (Appeals) for similar orders.Conclusion:The Supreme Court set aside the High Court's order and held that the appeals filed by the respondents against the order dated 05.12.2003 passed by the Deputy Director of Enforcement under Section 51 of FERA should be heard by the Appellate Tribunal under Section 19 of FEMA. The appeals were transferred to the concerned Appellate Tribunal for disposal on merits in accordance with the law. The appeal by the Union of India was allowed, and the impugned order was set aside.
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