Statutory pre-deposit requirement bars appeal on merits when penalty amount is not deposited

An appeal under the Foreign Exchange Regulation Act was subject to a statutory pre-deposit of the penalty amount, unless dispensation was obtained on undue hardship. Where the appellant failed to deposit the penalty despite directions and an extension, the appellate authority could not proceed to examine the merits. The appeal was therefore not maintainable and was dismissed for non-compliance with the pre-deposit requirement.

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Issues: Whether the appeal was maintainable despite non-deposit of the penalty amount required under section 52(2) of the Foreign Exchange Regulation Act, 1973.

Analysis: The appeal was subject to the statutory condition that the penalty amount be deposited, unless dispensation was granted on the ground of undue hardship. The appellant had not deposited the penalty amount despite directions of the Board and the extension granted by the High Court. Relying on the principle that an appellate authority cannot proceed to hear an appeal on merits unless the pre-deposit requirement is complied with, the Board held that the appeal could not be entertained.

Conclusion: The appeal was not maintainable and was dismissed for non-compliance with the pre-deposit order.

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