Fairness in ex parte foreign exchange adjudication led to remand for fresh hearing and document verification.

Material documents produced at the appellate stage went to the root of the foreign exchange contravention dispute, and the appellants gave a plausible explanation for not responding to the show-cause notice or appearing in the adjudication. In these circumstances, fairness required a fresh opportunity of hearing and verification of the relied-upon documents by the adjudicating authority. The ex parte penalty order was therefore set aside and the matter remanded for fresh adjudication from the stage of issue of the show-cause notice.

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Issues: Whether the ex parte adjudication order imposing penalty for alleged contravention of the foreign exchange provisions should be set aside and the matter remanded for fresh adjudication.

Analysis: The claimed import, supported by documents produced at the appellate stage, went to the root of the controversy. The appellants also gave a plausible explanation for not responding to the show-cause notice and for non-appearance in the adjudication proceedings. In these circumstances, a fresh opportunity of hearing was considered necessary, and the documents relied upon required verification by the adjudicating authority.

Conclusion: The impugned order was set aside and the matter was remanded for fresh adjudication from the stage of issue of the show-cause notice.

Final Conclusion: The penalty order did not stand, and the adjudication was reopened for reconsideration after giving the appellant an opportunity of hearing.

Ratio Decidendi: Where material documents bearing on the core controversy are produced belatedly and a plausible explanation is shown for earlier non-participation, fairness may require setting aside an ex parte order and remitting the matter for fresh adjudication.

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