Ex parte foreign exchange adjudication set aside and remanded for fresh hearing on transaction-wise export realisation evidence.

An ex parte adjudication order imposing penalties for alleged foreign exchange contravention was set aside because the dispute required transaction-wise examination of export realisation and the appellants had sought an opportunity to file defence material. The appellate authority held that the issues could not properly be examined for the first time in appeal where the appellants claimed subsequent realisation and efforts to secure payment. The matter was remanded for fresh adjudication with liberty to produce documents before the adjudicating authority, so that a fair opportunity of hearing could be given.

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Issues: Whether the ex parte adjudication order imposing penalties for alleged contravention of the foreign exchange law should be set aside and the matter remanded for fresh adjudication to afford the appellants an opportunity to present their defence and documentary evidence.

Analysis: The proceedings arose from a large number of export transactions requiring separate examination of the realisation position in each case. The appellants asserted that they had sought an adjournment and wished to produce evidence regarding subsequent realisation and efforts made to secure payment. In these circumstances, the appellate authority found it just and fair that the appellants should have an opportunity to defend the charges and that the issues could not properly be examined for the first time in appeal. The matter was therefore considered fit for remand rather than appellate determination on merits.

Conclusion: The ex parte adjudication order was set aside and the matter was remanded for fresh adjudication with liberty to file documents before the adjudicating authority.

Ratio Decidendi: Where the adjudication has proceeded ex parte in a matter requiring transaction-wise factual examination, and the party seeks to produce material evidence relevant to its defence, the matter should be remanded to ensure a fair opportunity of hearing.

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