ABC Exports Limited aggrieved by an order of Adjudication Authority under Foreign Exchange Management Act, 1999, wants to file an appeal against the order in Civil Court. As a Company Secretary, advise ABC Exports Limite

CS Professional · Resolution of Corporate Disputes, Non-Compliances & Remedies · PYQS · June 2019
ABC Exports Limited aggrieved by an order of Adjudication Authority under Foreign Exchange Management Act, 1999, wants to file an appeal against the order in Civil Court. As a Company Secretary, advise ABC Exports Limited whether the civil court has jurisdiction to entertain such a suit ? If not, suggest an alternate remedy.

Answer & Explanation:

Civil court cannot entertain such suits as civil court has no jurisdiction. As per section 34 of Foreign Exchange Management Act, 1999, no civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which an Adjudicating Authority or the Appellate Tribunal or the Special Director (Appeals) is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. In the given case, ABC Exports Limited can appeal to: (A) Appeal to Special Director (Appeals) As per section 17(1) of Foreign Exchange Management Act, 1999, the Central Government shall, by notification, appoint one or more Special Directors (Appeals) to hear appeals against the orders of the Adjudicating Authorities under this section and shall also specify in the said notification the matter and places in relation to which the Special Director (Appeals) may exercise jurisdiction. As per section 17(2) of Foreign Exchange Management Act, 1999, any person aggrieved by an order made by the Adjudicating Authority, being an Assistant Director of Enforcement or a Deputy Director of Enforcement may prefer an appeal to the Special Director (Appeals). (B) Appeal to Appellate Tribunal (Section 19) As per section 19(1) of Foreign Exchange Management Act, 1999, save as provided in sub-section (2), the Central Government or any person aggrieved by an order made by an Adjudicating Authority, other than those referred to in section 17(1), or the Special Director (Appeals), may prefer an appeal to the Appellate Tribunal.

Topics: Foreign Exchange Management Act (FEMA)

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