FEMA transition and tribunal bench constitution confirm Single Member Bench jurisdiction after FERA repeal

After the repeal of FERA, pending and transferred appeals fell to be heard under the FEMA transition framework, and the Appellate Tribunal's bench constitution depended on the successor statute rather than the repealed FERA restrictions. Section 49 of FEMA repealed FERA, dissolved the former Appellate Board, and provided for transfer of pending appeals to the FEMA Appellate Tribunal. As the Tribunal's governing law allowed the Chairman to constitute benches with one or two Members, a Single Member Bench was validly constituted and had jurisdiction to hear the appeals and connected miscellaneous petitions.

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Issues: Whether a Single Member Bench of the Appellate Tribunal had jurisdiction to hear and decide the appeals and the connected miscellaneous petitions under the Foreign Exchange Management Act framework after repeal of the Foreign Exchange Regulation Act.

Analysis: The jurisdictional objection was examined in the light of the repeal provisions in Section 49 of the Foreign Exchange Management Act, 1999. Section 49(1) repealed the Foreign Exchange Regulation Act, 1973 and dissolved the Appellate Board constituted under that Act. Section 49(5)(b) provided for transfer of pending appeals to the Appellate Tribunal under the Foreign Exchange Management Act, 1999. The Appellate Tribunal for FEMA was the tribunal constituted under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976, and Section 12(6A) of that Act empowered the Chairman to constitute Benches with one or two Members. The earlier restriction under Section 52(6) of the Foreign Exchange Regulation Act, 1973 did not survive after repeal. The Tribunal also treated the Supreme Court's interpretation of the FEMA and FERA transition as confirming that such appeals lie before the FEMA Appellate Tribunal.

Conclusion: The Single Member Bench had jurisdiction, and the challenge to jurisdiction failed.

Ratio Decidendi: After repeal of FERA, appeals governed by FEMA are to be heard by the FEMA Appellate Tribunal constituted under the successor framework, and the Chairman may validly constitute Single Member Benches where the governing statute so permits.

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