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The HC ruled that compounding of FEMA offenses cannot be claimed as a right after adjudication is complete. The petitioner initially filed a compounding application but failed to proceed after it was returned for lack of clarity. Instead, the petitioner participated in adjudication proceedings without objection, only seeking compounding after receiving an unfavorable ruling and penalty. The court determined this was an attempt to avoid payment and delay proceedings indefinitely. The HC noted that while compounding is permissible during ongoing adjudication, no provision exists for compounding after adjudication concludes, as this would render the Act's penal provisions ineffective and create an indefinite process. The petition was accordingly dismissed.
The HC ruled that compounding of FEMA offenses cannot be claimed as a right after adjudication is complete. The petitioner initially filed a compounding application but failed to proceed after it was returned for lack of clarity. Instead, the petitioner participated in adjudication proceedings without objection, only seeking compounding after receiving an unfavorable ruling and penalty. The court determined this was an attempt to avoid payment and delay proceedings indefinitely. The HC noted that while compounding is permissible during ongoing adjudication, no provision exists for compounding after adjudication concludes, as this would render the Act's penal provisions ineffective and create an indefinite process. The petition was accordingly dismissed.
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