In Brief
The appellant, a director of a company, was penalized for violating the Foreign Exchange Regulation Act, 1973. He claimed he was only a part-time, non-executive director not responsible for the company's operations. The High Court dismissed his written representation as an afterthought. The Supreme Court allowed his appeal, holding that to prosecute a director for FERA violations, authorities must prove the director was in charge of and responsible for the company's business at the time of the offence—mere directorial status is insufficient. The Court also ruled that written representations during administrative hearings must be considered and cannot be rejected without examining their substance.
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