Statutory presumption for sole proprietorship documents can support corroboration of seized records, despite procedural gaps in cross examination.

The text analyses application of the statutory presumption for documents seized from a sole proprietorship by treating documents as seized from the proprietor and explains that consistent admissions and contemporaneous seizure records can corroborate seized documents for proving foreign exchange contraventions. It distinguishes admissibility from acceptability, endorses requirement for independent corroboration of confessional or third party statements, and treats hearsay affidavits as weak. It also recognises absence of cross examination as a procedural defect under natural justice but explains that omissions may not void orders where reasons, independent evidence and material findings substantively address the issues.

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Issues: (i) Whether contravention of Section 3(a) of the Foreign Exchange Management Act, 1999 by the appellant was established and the penalty of Rs. 3,00,000/- justified; (ii) Whether the alleged failure to allow cross-examination of witnesses and related procedural/contentions rendered the impugned orders non-speaking or nullity.

Issue (i): Whether contravention of Section 3(a) of the Foreign Exchange Management Act, 1999 was established and the penalty of Rs. 3,00,000/- upheld.

Analysis: The seized diaries and currency were recorded in Panchnama and Seizure List as recovered from the office premises of the appellant's proprietary concern. The statutory presumption concerning documents seized from the custody or control of a person was engaged. A sole proprietorship being a business name of the proprietor provided basis to treat documents seized from the firm as seized from the person. The appellant made multiple consistent statements admitting receipt and payment of Bangladesh Taka and acknowledging the seized diaries as his, which provided corroboration to the entries in the seized documents. Authorities and precedents distinguishing admissibility from acceptability, and requiring corroboration of confessional or third-party statements, were applied to assess reliability; corroborative material was found to exist. The penalty quantum was measured against the contravention amount and found reasonable.

Conclusion: Contravention of Section 3(a) of the Foreign Exchange Management Act, 1999 was established and the penalty of Rs. 3,00,000/- is upheld (against the appellant).

Issue (ii): Whether denial of cross-examination or non-consideration of affidavits rendered the adjudication or appellate orders non-speaking or void.

Analysis: The absence of cross-examination was recognised as a procedural deficiency cognisable under principles of natural justice. However, the evidentiary record contained contemporaneous seizure documents, statements of independent witnesses, and multiple consistent statements of the appellant which collectively corroborated the material facts. Affidavits relied on by the appellant were found to be hearsay or not credible on their face. The substantive issues raised were addressed in the impugned orders in substance, and omission to address each point in isolated terms did not convert the orders into nullities where reasons and material findings exist.

Conclusion: The procedural complaints do not vitiate the impugned orders; they do not render the orders non-speaking or void (against the appellant).

Final Conclusion: The appellate challenge against confirmation of the adjudication order and the penalty is dismissed; the impugned orders remain operative and the penalty stands upheld.

Ratio Decidendi: Where documents and currency are seized from the premises of a sole proprietorship, the statutory presumption as to documents seized from the custody or control of a person applies to the proprietor, and consistent admissions by the proprietor together with independent seizure records suffice to corroborate the seized documents and sustain a penalty under Section 3(a) of the Foreign Exchange Management Act, 1999.

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