Pre-deposit requirement in foreign exchange appeals: non-compliance made the appeal not maintainable and liable to dismissal.

Where the statutory scheme makes deposit of the penalty a condition precedent to entertaining an appeal, failure to comply with the pre-deposit requirement renders the appeal not maintainable unless dispensation is granted on grounds of undue hardship and a prima facie good case. Here, the appellant was directed to deposit the penalty within the stipulated time, but did not comply and also remained absent without showing cause for the default. As no dispensation had been granted and the statutory condition remained unfulfilled, the appeal was liable to dismissal for want of maintainability.

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Issues: Whether the appeal was maintainable in the absence of compliance with the pre-deposit requirement under the statutory scheme governing appeals under the Foreign Exchange Regulation Act, 1973.

Analysis: The appeal was subject to the statutory requirement of depositing the penalty amount before it could be entertained, unless dispensation from deposit had been granted on satisfaction of undue hardship and a prima facie good case. The appellant had been directed to deposit the penalty within the stipulated time, but failed to comply and also remained absent without showing any cause for the non-compliance. In these circumstances, the statutory condition for entertaining the appeal remained unfulfilled.

Conclusion: The appeal was not maintainable for want of compliance with the pre-deposit order and was liable to be dismissed.

Ratio Decidendi: Where the statute makes deposit of the penalty a condition precedent to the entertainment of an appeal, and no dispensation is granted, failure to comply with the pre-deposit requirement renders the appeal liable to dismissal.

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