Territorial jurisdiction under FERA follows the place fixed for penalty payment; non-compliance there sustains prosecution.

An offence under Section 57 of the Foreign Exchange Regulation Act was complete where the adjudication order required penalty payment at Madras and the accused failed to comply there. The Madras criminal court therefore had territorial jurisdiction to entertain the complaint, because the breach occurred within its local limits. The availability of an appeal under Section 54 to the High Court where the accused resided or carried on business did not oust that criminal jurisdiction. The quashing petition was rejected and the prosecution was allowed to proceed.

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Issues: Whether the criminal court at Madras had jurisdiction to entertain the complaint under Section 57 of the Foreign Exchange Regulation Act, 1973, despite the availability of an appeal under Section 54 to the High Court where the accused ordinarily resided or carried on business.

Analysis: The complaint alleged failure to comply with the adjudication order directing deposit of the penalty at the office of the Enforcement Directorate, Madras, within the court's territorial limits. Section 57 penalised failure to pay the penalty imposed or to comply with directions contained in the adjudication order. The place fixed for payment was Madras, and the offence was therefore complete on non-compliance there. Section 54, which governed appeals to the High Court of the place of residence or business, did not affect the jurisdiction of the criminal court to try the offence arising from breach of the direction to pay at Madras.

Conclusion: The complaint was held to be maintainable at Madras and the jurisdictional challenge failed.

Final Conclusion: The petition for quashing was rejected, and the prosecution was permitted to proceed before the court below.

Ratio Decidendi: Where an adjudication order specifically directs payment of penalty at a particular place, failure to comply with that direction constitutes the offence under Section 57, and the criminal court within that territorial nexus has jurisdiction notwithstanding the appellate forum under Section 54.

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