THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION NO : 22039 of 2002 ORDER: The first petitioner is a company and the second petitioner is its Managing Director. They are involved in the activity of manufacturing telephone cable insulation compounds. They intend to import an item of machinery from Switzerland. On a request made by them, necessary foreign exchange was arranged by the Andhra Bank with the permission of Reserve Bank of India. It was, however, found that though the foreign exchange was utilized, the machinery was not imported. The Deputy Director of Enforcement Directorate (Foreign Exchange Regulation Act), Government of India, 2nd respondent herein, initiated proceedings against the petitioners, under Sections 8(3) and 8(4) of the Foreign Exchange Regulation Act 1973 (for short ‘the Act’). Through an order, dated 24.09.2001, the 2nd respondent imposed the penalty of Rs.3,00,000/- on the petitioners, for the alleged violation of the provisions of the Act. Aggrieved thereby, the petitioners filed an appeal before the appellate Tribunal for Foreign Exchange, New Delhi. Through its order, dated 23.09.2002, the appellate Tribunal granted interim stay of the order of the 2nd respondent. Even while the appeal is pending, the 1st respondent initiated steps to prosecute the petitioners under Section 57 of the Act and cases were registered in C.C.Nos.69 and 99 of 2002 before the learned Special Judge for Economic Offences, Hyderabad. The petitioners challenge the action of the 1st respondent. Heard the learned counsel for the petitioners and the learned counsel for the respondents. The only basis for prosecuting the petitioners is the order, dated 24.09.2001, passed by the 2nd respondent. It is not in dispute that the petitioners preferred an appeal and the appellate Tribunal passed an interim order, dated 23.09.2002, granting interim stay. It is stated that the appeal was since heard, but the orders have not been pronounced as yet. While admitting the writ petition on 06.11.2002, this Court granted an interim order, by taking note of the pendency of the appeal before the Tribunal and the interim order passed by it. Virtually, the same position exists even now. This Court is of the view that the arrangement ordered by this Court on 06.11.2002 can be continued, till the appellate Tribunal disposes of the appeal. Therefore, the writ petition is disposed of, directing that the further proceedings in C.C.Nos.69 and 99 of 2002 on the file of the learned Special Judge for Economic Offences, Hyderabad, shall stand stayed, till the appellate Tribunal for Foreign Exchange passes orders on the appeal filed by the petitioners, against the order, dated 24.09.2001, passed by the 2nd respondent. There shall be no order as to costs. _________ 28.11.2008 JSU THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION NO : 22039 of 2002 Date: 28.11.2008 JSU