Pre-deposit requirement under foreign exchange law: repeated non-compliance led to dismissal of the appeal

The appellate scheme under Section 52(2) of the Foreign Exchange Regulation Act, 1973 required pre-deposit of the penalty amount before an appeal could be entertained, subject to discretionary dispensation on a showing of undue hardship. Repeated opportunities were granted to comply with the deposit direction, but the appellant failed to make the required deposit. On those facts, the Tribunal found no bona fides and treated equitable relief as unavailable, leading to dismissal of the appeal for non-compliance with the pre-deposit order.

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Issues: Whether the appeal was liable to be dismissed for failure to comply with the pre-deposit requirement under Section 52(2) of the Foreign Exchange Regulation Act, 1973.

Analysis: The appellate scheme required deposit of the penalty amount before the appeal could be entertained, subject to discretionary dispensation where undue hardship was shown. The appellant had been given repeated opportunities to comply with the pre-deposit direction, including time to make the required deposit, but did not do so. In these circumstances, the Tribunal found absence of bona fides and held that equitable relief was unavailable.

Conclusion: The appeal was held liable to be dismissed for non-compliance with the pre-deposit order.

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