Mandatory pre-deposit under foreign exchange law led to dismissal where no compliance or undue hardship was shown.

The Foreign Exchange Regulation Act, 1973 required an appellant to pre-deposit the penalty amount before an appeal could be entertained under section 52(2), unless the Tribunal dispensed with deposit on being satisfied that undue hardship existed. In a penalty appeal for contravention of section 8(1) and section 8(2), the appellant neither complied with the deposit direction nor appeared to explain the default, and no basis for dispensation was shown. The appeal was dismissed for failure to meet the mandatory pre-deposit condition.

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

Analysis: The appeal was filed against a penalty order for contravention of section 8(1) and section 8(2) of the Foreign Exchange Regulation Act, 1973. The appellant had been directed to deposit the penalty amount, but neither complied with that direction nor appeared to explain the default. The statutory scheme under section 52(2) requires deposit of the penalty amount before an appeal can be entertained, unless the Tribunal dispenses with the deposit on being satisfied as to undue hardship. No compliance, appearance, or ground for dispensation was shown.

Conclusion: The appeal was dismissed for failure to comply with the mandatory pre-deposit requirement.

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