{"id":254374,"date":"1990-03-21T00:00:00","date_gmt":"1990-03-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/lawrence-brito-vs-union-of-india-and-others-on-21-march-1990"},"modified":"2018-12-21T13:07:17","modified_gmt":"2018-12-21T07:37:17","slug":"lawrence-brito-vs-union-of-india-and-others-on-21-march-1990","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/lawrence-brito-vs-union-of-india-and-others-on-21-march-1990","title":{"rendered":"Lawrence Brito vs Union Of India And Others on 21 March, 1990"},"content":{"rendered":"
Karnataka High Court<\/div>\n
Lawrence Brito vs Union Of India And Others on 21 March, 1990<\/div>\n
Equivalent citations: 1992 73 CompCas 418 a Kar, 1991 CriLJ 217<\/div>\n
Bench: M C Urs<\/div>\n

ORDER<\/p>\n

1. The petitioner is aggrieved by the proceedings initiated under the provisions of the Foreign Exchange Regulation Act<\/a>, 1973 (hereinafter referred to as the Act) inter alia on the ground that he has committed no offence punishable under section 9(1)(b)<\/a> of the Act.\n<\/p>\n

2. The facts briefly stated are as follows. The petitioner is a civil contractor residing at Bajpe close to Mangalore City in Karnataka State. It suffices to say that he has a brother, admittedly, working in Dubai at Bank of Pakistan in the United Arab Emirates. On 12th April, 1989 the Enforcement Director, Government of India, Southern Zone, Madras, 2nd respondent herein and the Deputy Director, Enforcement Directorate, Southern Zone, Madras, conducted raid and search of the residential premises of the petitioner at Bajpe. They seized a sum of Rs. 1,69,350\/- found in the steel cupboard in his house as well as three letters written by the petitioner’s brother to his father in Konkani language. Thereafter, he was served with a show cause notice as at Annexure-J. The show cause notice is dated 25-10-1989 calling upon him to show cause why he should not be subjected to adjudication proceedings in accordance with the provision made in Section 51<\/a> of the Act read with the rules made thereunder. Aggrieved by the same, he has approached this Court for a writ of prohibition inter alia on the ground that no prima facie case is made out for commencing prosecution or proceedings under section 51<\/a> of the Act, as the letters seized or the money seized do not themselves constitute an offence.\n<\/p>\n

3. This submission overlooks the fact that on 12-4-1989 as evidenced by Annexure-E a statement by the petitioner before respondents 2 and 3 wherein he admitted that Rs. 1,69,350\/- the amount seized at the time of the raid and search was received by him from a stranger whose description he gave and who had delivered the said sum on the instructions of his brother working at Dubai, United Arab Emirates and that he had been instructed by telephone by his brother in that regard of the arrival of the money which was meant for construction of a house for his brother. It is pursuant to that statement, apparently, that the adjudication proceedings have been initiated.\n<\/p>\n

4. In this Court, Mr. G. V. Shantharaju, learned Counsel for the petitioner has contended in support of the allegations that the statement made was under duress. In any event, it cannot be used against him on that count. Therefore, barring that statement that there is no material implicating him for the commission of any offence under section 9(1)(b)<\/a> of the Act.\n<\/p>\n

5. No doubt, there is an allegation that the statement was obtained under duress. But in what manner the duress was practised or brought about is not stated. No doubt, under the normal criminal jurisprudence obtaining in this Country a statement made to the investigating officer may not be made use of against the person unless it is a judicial confession made in accordance with law in that behalf in a trial for a criminal offence. But the Act<\/a> is an exception, a different procedure is prescribed in Section 51<\/a> of the Act read with the Rules made thereunder and an appeal is provided to the Board under section 52<\/a> of the Act. Section 53<\/a> of the Act provides for the powers and procedure of the adjudicating officer and the Appellate Board to summon witnesses. Against the order of the Board, an appeal to the High Court is provided.\n<\/p>\n

6. In order to question the initiation of proceedings under section 51<\/a> of the Act, the petitioner must show total want of jurisdiction if he seeks a writ of prohibition. If the statement made by him under section 40<\/a> of the Act is sufficient to implicate him in the commission of an offence under the Act, then question of want of jurisdiction does not arise. It will be open to him to contend before the adjudicating officer the manner of duress and the inadmissibility of the statement on the basis of which the offence is said to have been committed. Thereafter he has other remedies under the Act which will ensure a degree of fairness. He may urge all the grounds which he has now urged. If a person is not successful to substantiate his claim that such a statement made by him under section 40<\/a> of the Act was obtained under duress, in this Court, prima facie, there is no lack of jurisdiction to initiate the proceedings of adjudication. The question of issuring a writ of prohibition does not arise. The petition is therefore rejected.\n<\/p>\n

7. However, Mr. Shantharaju, pleaded that even if he were to proceed against him at least this Court may direct release from out of the funds seized from him a sum of Rs. 1,60,000\/-. That is the subject matter of adjudication. If the adjudicating officer finds in favour of the enforcement Directorate, then that money is liable to confiscation and the penalty of five times that amount which has been seized is liable to be imposed. Therefore, offering bank guarantee for Rs. 1,60,000\/- would not be sufficient to enable this Court to make a direction to return the money to him because he is carrying on his business as building contractor. But then his statement made under duress or voluntarily, that money was not used for business but for construction of a house for his brother. Unless the petitioner is prepared to furnish a bank guarantee for a sum equal to six times the amount seized, this Court ought not to direct the release of the same.\n<\/p>\n

8. For the above reasons, the prayer for return of money also is rejected.\n<\/p>\n

9. Petition dismissed.<\/p>\n","protected":false},"excerpt":{"rendered":"

Karnataka High Court Lawrence Brito vs Union Of India And Others on 21 March, 1990 Equivalent citations: 1992 73 CompCas 418 a Kar, 1991 CriLJ 217 Bench: M C Urs ORDER 1. The petitioner is aggrieved by the proceedings initiated under the provisions of the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-254374","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nLawrence Brito vs Union Of India And Others on 21 March, 1990 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/lawrence-brito-vs-union-of-india-and-others-on-21-march-1990\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lawrence Brito vs Union Of India And Others on 21 March, 1990 - 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