VIDEOCON INDUSTRIES LTD. & ANR.versusSTATE OF MAHARASHTRA & ORS.

                          (2016) 2 S.C.R. 741



              VIDEOCON INDUSTRIES LTD. & ANR.                              A
                                   v.
                STATE OF MAHARASHTRA & ORS.
                   (Criminal Appeal No.332 of2016)
                            APRIL 19,2016                                  B

        [DIPAK MISRA AND SHIVA KIRTI SINGH, JJ.]
        Code of Criminal Procedure, 1973: s.245 - Discharge of
  accused - Adjudicating authority imposed penalty on company and
   directors under FERA Act. - Tribunal dislodged the finding of the
  adjudicating authority - Order of tribunal not assailed by the
                                                                           c
   revenue and therefore attained finality - During process of
. adjudication, criminal proceedings coniinued - After the controversy
   was put to rest by the tribunal, application for discharge filed by
   accused - Magistrate ordered discharge of the accused - Re\>isional
   court dislodged the view of magistrate - High Court held that the       D
   tribunal has not given any finding on the merits of the case and its
   findings were based on technical grounds - On appeal, held: The
  ·decision rendered by tribunal was on merits - It was not adjudication
   on any technical foundation - Moreover, the order of tribunal was
   not,under assail before the High Court and hence High Court could
                                                                           E
. not ·have commented on the merits of the ca$e - Order of magfstrate
   discharging the accused persoiis stand restored - Foreign Exchange
   Regulation Act, 1973 - s. 18.
      Allowing the appeal, the Court
      HELD:t. The conclusions arrived at by the tribunal are on            F
 analysis of .statutory provisions, the applicability of the letters
 issued by the Reserve Bank of India and the nature of transaction
 carried out between the parties. It is beyond any stretc!i of doubt
 that the decision rendered by the tribunal is on merits. It is not
 an adjudication on any technical foundation. The decision on
 merits was allowed to rest by the revenue. The Magistrate relying         G
 upon the decision in R1u/l1es/1y"m Kejriw"I dischal'l(ed the accused
 person. The Additional Sessions Judge followed t!1e view
 expressed in the dissenting opinion. The High Court noted the
 same and did not really advert to the said facet. The revisional
 court should have followed the view expressed by the majority             H
                                   741
742            SUPREME COURT REPORTS                      (2016] 2 S.C.R.


A  and not the minority. The approach was absolutely erroneous.
   Be that as it may, as the order passed by the High Court showed,
  ·it referred to the principles culled out in Radllesllyam Kejriwal
   and thereafter proceeded, to record its opinion about the
   transaction on which the tribunal had rendered its verd.ict. The
   order of the tribunal was not under assail before the High Court
B
   and, hence, the High Court could not have commented on the
   merits of the same. As the order passed by the tribunal was not
   under challenge, the High Court should not have_ deliberated on
   the justification of the view expressed by the tribunal. (Para 14]
   J748-D-H, 749-AJ
c            2. In R{l(fflesllyam Kejriwal, the majority observed that the
      yardstick would be to judge as to whether the allegation in the
      adjudication proceedings as well as the proceeding for
      prosecution is identical and the exoneratio·n. of the person
      concerned in the adjudication proceedings is on merits. In case
D     it is found on merit that there is no contravention of the provisions
      of the Act in the adjµdication proceedings, the trial of the person
      concerned shall be an abuse of the process of the court. On the
      basis of the said principles, the majority proceeded to analyse
      the factual matrix and analysed the finding recorded by the
      adjudicating authority and opined when there is a finding by the
 E    Enforcement Directorate in the adjudication proceeding that there
      is no contravention of any of the provisions of the Act, it would
      he unjust and an abuse of the process of the court to permit the
      Enforcement Directorate to continue with the criminal
      prosecution. Thus there is no reason to to disagree with the
 F    same and refer the pronouncement in R(l(l/1esl1yam Kejriwal for
      reconsideration by the larger Bench. (Paras 19, 20] (751-E-H]
           3. In the instant case, the tribunal had arrived at a conclusion
      that the appellant cannot be held guilty for Section 18(2) read
      with Secdon 18(3) of FER Act, 1973 and the advise of the Reserve
 G    Bank of India deserve to be accepted as they are totally in
      consonance with legal provisions. The High Court, without an
      assail to the order passed by the tribunal, has adverted to the
      same and opined that it does not subscribe to the view expressed
      by the tribunal that Section 18(2) and 18(3) of the Act were not
      applicable to the transaction in question. The High Court after
 H
VIDEOCON INDUSTRIES LTD. v. STATE OF MAHARASHTRA 743


stating that, opined that the findings given by the tribunal were       A
based on technical grounds and, therefore, the prosecution was
liable to continue. The High Court could not have done that. The
judgment of the tribunal is on merits, inasmuch as findings have
been recorded after analysis of facts and the conclusion has been
arrived at that the appellants have not violated the provisions of
                                                                        B
the Act. In such a situation, it cannot be said that it is a judgment
rendered on technical grounds. The High Court totally erred in
law. [Para 21) [751-H, 752-A-D)
       Radheshyam Kejriwal v. State of West Bengal & Am:· ·
       2011 (4) SCR 889 : (2011) 3 SCC 581 - relied on.
       Standard Chartered Bank and others v. Directorate of
                                                                        c
       Enforcement and others 2006 (2) SCR 709 : (2006) 4
       SCC 278; Collector of Customs v. L.R. Melwani AIR
       1970 SC 962 : 1969 SCR 438; KG Premshankar v.
    , Inspector of Police 2002 (2) Suppl. SCR 350 : (2002)
       8 SCC 87; Iqbal Singh Marwah v. Meenakshi Manrnh                 D
       2005 (2) SCR 708 :(2005) 4 SCC 370; Ut1am Chand v.
       ITO (i982) 2 SCC 543; GL. Didwabna v. ITO (1995)
       Supp. (2) SCC 724; KC. Builders v. CIT 2004 (1) SCR
     . 1134 : (2004) 2 SCC 731; B.N. Kashyap v. Emperor
       AIR 1945 Lah 23 - referred to.
                                                                        E
                       Case Law Reference
    2011 (4) SCR 889               relied on           Para8
    7006 (2) SCR 709               referred to         Para 12
    1969 SCR 438                   referred to         Para 17
    AIR 1945 Lah 23                referred to         Para 17          F
    2002 (2) Suppl. SCR 350        referred to         Para 17
    7005 (2) SCR 708               referred to         Para 17
    (1982) 2 sec 543               referred to         Para 17
    (1995) Supp. (2) sec 724       referred to         Para 17
                                                                        G
    2004 (1) SCR 1134              referred to         Para 17
     CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No.
332 of2016.
    From the Judgment and Order dated 14.10.2013 in Crl. A. No. 497
of201 l passed by the High Court of Bombay.                             H
744            SUPREME COURT REPORTS                           (20 I 6) 2 S.C.R.
                                                                    '

A                                      WITH
           Crl. A. NO. 333 of2016.
           C.U. Singh,A.K. Panda, Sr.Advs., Siddharth Bhatnagar, S. Mishra,
      Sidharth Mohan, Ms. Garima Tiwari, Nirnimesh Dube, T. Mahipal,
      Amarjeet Singh, S.A. Haseeb, Rajat Mathuria, Ms. Sonali Singh, B.
 B    Krishna Prasad for the appearing parties.
           The Judgment of the Court was delivered by
           DIPAK MISRA, J. I. Leave granted.
            2. The present appeals, by special leave, are directed against the
 C    order dated 14.10.2013 passed by the High Court of Judicature at
      Bombay in Criminal Application No.497 of20 I I assailing the order passed
      by the learned Additional Sessions Judge, Fort, Greater Bombay in
      Criminal Revision No. 7 I 6 of2008 whereunder the revisional court had
      dislodged the order of discharge passed by the Chief Metropolitan
      Magistrate, Mumbai in Complaint Case N:o.1149/S/2002 wherein the
 D    company as well as its officer were facing trial for the offence punishable
      under Section 56( I ){i) of the Foreign Exchange Regulation Act, I 973
      (for short, 'the Act') for the alleged contravention of the provisions of
      Sections I 8(2) and 18(3) of the Act.
             3. As the factual matrix would depict, when the matter was pending
 E    for trial before the learned ChiefMetropolitan Magistrate, the adjudicating
      authority vide order dated 30.03.2005 imposed penalty ofRs.2,00,00,000/
      - (Rupees two crore only) against the appellantccompany and penalty
      amounting to between Rs.50,000/- (Rupees fifty thousand only) to
      Rs.2,00,000/- (Rupees two lac only) on each of the Directors. Being
 F    grieved by the order passed by the adjudicating authority, the company
      as well as the Directors preferred Appeal No.517 of 2005 and other
      connected appeals before the Appellate Tribunal for Foreign Exchange
      (for short, 'the tribunal'): The tribunal reproduced Section 18 of the Act,
      analysed the scheme of the provisions, scrutinized the allegations made .
      by the Department, discussed the stand put forth by the assessees and
 G    came to hold that:-
             "Thus, it is simple and clear from the la.nguage that goods which .
             were purchased from Korea and Japan are not covered under
             Section l 8(l)(a). From this sequence, it further flows that Section
             18(2) is not applicable to the goods which were sold in international
 H           market by way of international transactions because these
VIDEOCON INDUSTRIES LTD. v. STATE OF MAHARASHTRA 745
                [DIPAK MISRA, J.]

    provisions are made applicable to the goods which are otherwise           A
    covered under Section 18(1 )(a) and not otherwise. As the goods
    in question were never exported outside India so Section 18(2) is
    in. no way can be applied to these transactions because such
    international selling is not governed by Section 18(1 )(a) of FER
    Act. The impugned order has repeatedly said that for purchase
                                                                              B
    of CPT colour tubes from Japan and Korea the appellant spent
    the foreign exchange. May it be so. But such spending of foreign
    exchange in international trade by an Indian person is not forbidden
    by Section 19 of FER Act. Shri A.C. Singh, ALA could not point
    out any other provision in FER Act where spending of foreign
    exchange is prohibited in international trade by a person resident        c
     in India. It is well known fact that international trade is transacted
    by spending foreign exchange but the earning of foreign exchange
    is also made by person resident in India. There is no law whereby
     Indian resident is regulated from entering into international trade.
    If that is so, the appellant cannot be held guilty for Section 18(2)
                                                                              D
    read with Section 18(3) of FER Act, 1973."
                                                       [Emphasis added]
   4. After so stating, the tribunal proceeded to opine that:-
    "11. The act of transferring trade license which was earlier in the
    name ofVideocon Appliances Ltd in favour of the appellant firm            E
    hardly has any bearing on the question at hand. Moreover, M/s.
    VideoconAppliances Ltd. Is not held guilty by the impugned order.
    Jn that situation, it is difficult to understand that how individual
    Directors ofM/s. VideoconAppliances Ltd. Can be held guilty by
    the impugned order. It is apparent from the impugned order that
                                                                              F
    paitner appellants as well as Director appellants are held guilty
    doubly and separately even when these names are over-lapping
    and all of them are also shown as directors of Mis. Videocon
    Appliances Ltd.
    12. The Reverse Bank of India by two letters of dated 21.1.1992
                                                                              G
    and dated 18.2.1994 as at page 46 and 52 of the records has also
    stated that intemational transactions of trade by purchase of goods
    from Japan and Korea and sale to Mis. Radio Exports, Russia
    does not require any filling up oftheGRI form along with declaration
    under Section 18(1 )(a) nor are covered under Treat Agreement
    mechanism with Russia about payment. We have not been led to              H
746            SUPREME COURT REPORTS                            [2016] 2 S.C.R.


A           anything wherefrom this Tribunal can find that RBI has gone
            wrong. RB I lune lions as de legated authority of Parliament under
            FER Act and in this sense of tenn functions as Controller and
            Regulator of foreign exchange. hence, the advice of RBI given
            by aforesaid two letters is required to be accepted when it is
            totally in consonance with the legalvrovisions."
 B
                                                           [Underlining is ours]
       '   5. Being of this view, the tribunal dislodged the finding of the
      adjudicating authority.
           6. Be it noted here, the order passed by the tribunal was not assailed
c     by the Revenue and, therefore, it has attained finality.
            7. Presently, we shall advert to the scenario in the court of the
      learned Magistrate. During the process of adjudication and the delineation
      of the assail by the tribunal, the criminal proceeding continued and after
      the controversy was put to rest by the tribunal, an application was filed
 D    under Section 245 of the Code of Criminal Procedure for discharge of
      the accused. The learned Magistrate \akin~ note of the fact that there
      has been an adjudication on merits by the tribunal. thought it appropriate
      to discharge the accused persons and accordingly so directed.
            8. The order passed by the learned Chief Metropolitan Magistrate
 E    was challenged in Criminal Revision Application No. 716 of2008 and
      the learned Additional Sessions Judge dislodged the view expressed by
      the learned Magistrate and allowed the revision. Being dissatisfied, the
      appellant preferred Criminal Application No. 497 of 2011 before the
      High Court. The learned single Judge referred to the decision
 F    Rm/hesltyllm Kejriw11/ v. State of West Bet1Klll & A11r. 1, noted that the
      revisional comt had relied on the minority view, reflected on the principles
      culled out in the said case, adverted to the findings recorded by the
      tribunal and thereafter opined that:-
            " ... In the present case, however, what is noted is that though the
            goods were physically shipped from Korea and Japan, the same
 G
            were shipped on behalf of the accused aud in my considered
            opinion it amounted to export. It is stated to be third country
            export. In such a case of export, in my view, it is not necessary
            that the goods shall necessarily be shipped from the shores of

 H    'i201113 sec ss 1
VIDEOCON INDUSTRIES LTD. v. STATE OF MAHARASHTRA 747
                [DIPAK MISRA, J.]

      India. It is noted that permission was obtained by the accused to         A
      ship the goods from South Korea and Japan directly. Foreign
      exchange was paid to the Japanese and Korean companies. The
      payment was to be received in Indian rupees and same was
      supposed to be received in India at Indian Bank, Nariman Point
      Branch, Mumbai. This being nature of transaction, it follows that
                                                                                B
      the export of goods was deemed export from India and foreign
      exchange was spent for buying the goods from South Korea and
      Japan. The payment was to be received in Indian Bank, Nariman
      Point Branch Mumbai. No steps were taken by the accused to
      see that the payments are received within a stipulated time. I do
      not subscribe the view expressed by the Tribunal that Sections            c
      18(2) and 18(3) of the Act were not applicable to the transaction
      in question.''
                                                       [Emphasis supplied]
      9. Being of this view, the High Court has expressed the opinion
that the tribunal has not given any finding on the merits of the case and       D
!ts findings are based 011 technical grounds. The said appreciation has
led to the dismissal ofthe criminal application preferred by the assessee.
     10. We have heard Mr. C.U. Singh, learned senior counsel for the
appellant and Mr. A.K. Panda, learned senior counsel for the respondents.
                                                                                E
      11.lt is submitted by Mr. Singh that the High Court has not
appropriately decided the petition regard being had to the jurisdiction
under the Code of Criminal Procedure and keeping in view the principles
stated by the majority in Radllesllyam Kejriwal (supra) but has allowed
itself to decide on the justifiability of the order passed by the tribunal in
appeal preferred by the appellant and, therefore, the ultimate conclusion       F
is vitiated. Learned senior counsel further submits that the order passed
by the tribunal cannot be regarded as an order passed on technical
grounds as the tribunal has analysed the facts and taken a view and
same having gone unchallenged, the order of discharge passed by the
learned Magistrate is absolutely defensible and should not ha1 e been
                                                                                G
interfered with by the revisional court and the High Court should not
have given the stamp of affirmance to the order passed in revision.
      I 2. Mr. Panda, learned senior counsel, per contra, would go to the
extent of submitting that the decision in Radllesllyam Kejrbval (supra)
is not in accordance with the principles stated in Standard Chartered
                                                                                II
748            SUPREME COURT REPORTS                           [2016] 2 S.C.R.



A     Bank and otfters v. Directorate of Enforcement and otfters' and
      therefore it requires reconsideration. He has referred to various passages
      from th•: said authority. Additionally, learned senior counsel argues that
      the view expressed by the High Court is absolutely flawless and does
      not require to be interfered with by this Court.
 B          13. In reply, Mr. Singh would contend that in Rad/1esftyam Kejriwal
      (supra), the decision rendered in Standard Cftartered Bank (supra)
      has been extensively considered and distinguished and the basis of the
      distinction forms the foundation of discharge in the present case and,
      therefore, this Court should exercise its jurisdiction under Article 136 of
      the Constitution and set aside the order of the High Court. That apart, it
 c    is urged that there is no necessity for reconsideration of the decision in
      Radftes/1yam Kejriwal (supra) by a larger Bench.
          14. It is obligatory tt:l note at the outset that the findings recorded
   and the conclusions arrived at by the tribunal are founded on analysis of
   statutory provisions, the applicability of the letters issued by the Reserve
 D Bank of India and the nature of transaction carried out between the
   parties. It is beyond any stretch of doubt that the decision rendered by
   the tribunal is on merits. It is not an adjudication on any technical
   foundation. The decision on merits was allowed to rest by the revenue.
   The learned Magistrate, as has been stated earlier, relying upon the
 E decision in Radftesilyam Kejriwa/ (supra) discharged the accused
   person. The learned Additional Sessions Judge, as is evident, followed
   the view expressed in the dissenting opinion. The High Court has noted
   the same and has not really adverted to the said facet. At this juncture
   it is necessary to state that the revisional court should have followed the
   view expressed by the majority and not the minority. The approach is
 F absolutely erroneous. Be that as it may, as the order passed by the High
   Court would show, it has referred to the principle& culled out in
   Radilesftyam Kejriwal (supra) and thereafter had proceeded, as has
   been indicated earlier, to record its opinion about the transaction on which
   the tribunal has rendered its verdict. It is submitted by Mr. Singh, learned
 G senior counsel appearing for the appellant that the order of the tribunal
    was not under assail before the High Court and, hence, the High Court
    could not have commented on the merits of the same. We find substance
    in the aforesaid argument. As the order passed by the tribunal was not
    under challenge, the High Court should not have deliberated on the

 H    '(2006) 4 sec 278
VIDEOCON INDUSTRIES LTD. v. STATE OF MAHARASHTRA 749
                [DIPAK MISRA, J.]

justification of the view expressed by the tribunal. It is interesting to note   A
that the High Court has relied on the principles of the majority in
Radheshyam Kejriwal (supra) and declined to quash the proceedings.
Mr. Panda, learned senior counsel appearing for the revenue would
strenuously argue that the Radheshyam Kejriwal (supra) is contrary to
the view expressed in the Standard C/wrterecl Bank (supra) and,
                                                                                 B
therefore, the matter requires to be reconsidered by the larger Bench.
As we find, that the decision in Standard Chartered Bank (supra) has
been copiously referred to in the opinion by the majority and on facts it
has been distinguished. Therefore, the pronouncement in Radheshyam
Kejriwal (supra) is a binding precedent.
      15. The heart of the matter would be whether the distinction made          c
in Radheshyam Kejriwal (supra) applies to the factual score to the
case at hand. The majority has reproduced paragraph 24 from Stan<lard
Chartered Bank (supra) wherein it has been held as follows:-
       " ... There is nothing in the Act to indicate that a finding in an
       adjudication is binding on the court in a prosecution under Section       D
       56 of the Act. There is no indication that the prosecution depends
       upon the result of the adjudication. We have already held that on
       the scheme of the Act, the two proceedings are independent. The
       finding in one is not conclusive in the other. In the context of the
       objects sought to be achieved by the Act, the elements relied on          E
       by the learned Senior Counsel, would not justify a finding that a
       prosecution can be launched only after th.e completion of an
      ·adjudication under Section 51 of the Act."
      16. In that context, the majority in Radheshyam Kejriwal (supra)
has proceeded to pose the issue required to be adjudicated in the said           F
case. It is as follows:-
       "However, in a case like the present one in which the penalty
       proceeding under Section 51 of the Act and the prosecution under
       Section 56 of the Act though launch~d together but the penalty
       proceeding culminated earlier exonerating the person, the question
                                                                                 G
       wo'i1ld arise as to whether continuance of the prosecution would
       be permissible ornot. In other words, the question with which we
       are concerned is the impact of the findings which are recorded on
       the culmination of adjudication proceedings on criminal proceeding
       and in case in the adjudication proceedings the person concerned
       is exonerated can he ask for dropping of the criminal proceeding          H
750             SUPREME COURT REPORTS                           [2016] 2 S.C.R.


A           ·on that ground alone".
            I 7. Thereafter, it has referred to various authorities, namely,
      Collector of Customs v. L.R. Melwa11P, B.N. Kasflyap v. Emperor,
      K.G. Premslumkar v. Impector of Police', Iqbal Si11gfl Marwafl v.
      Meemtksfli Marwafl 6, Uttam Cluaul v, ITO', G.L. Didwtma v. ITO'
B     and K.C. Builders v. err and eventually ruled that:-
             "We find substance in the submission of Mr Sharan. There may
             appear to be some conflict between the views in Standard
             Chartered Bank(]) and l.R. Mehmni holding that adjudication
             proceedings and criminal proceeding are two independent
c            proceedings and both can go on simultaneously and finding in the
             adjudication proceedings is not binding on the criminal proceeding
             and the judgments of this Court in Uttam Chand, GL. Did1m11ia
             and K.C. Builders wherein this Court had taken a view that when
             there is categorical finding in the adjudication proceedings
             exonerating the person which is binding and conclusive, the
D            prosecution cannot be allowed to ~598stand. The judgments of
             this Court are not to be read as a statute and when viewed from
             that angle there does not seem any conflict between the two sets
             of decisions. It will not make any difference on principle that latter
             judgments pertain to cases under the Income Tax Act".
E           18. In the ultimate eventuate, the following principles were culled
      out from the decisions referred to in the judgment. The majority has put
      itthus:-
             "The ratio which can be culled out from these decisions can broadly
             be stated as follows:
 F
             (i) Adjudication proceedings and criminal prosecution can be
             launched simultaneously;
             (ii) Decision in adjudication proceedings is not necessary before
             initiating criminal prosecution;
      -----
G 'AIR 1970 SC 962
      'AIR 1945 Lah 23
      '(2002) s sec 87
      "(2005) 4 sec 370
      '(1982) 2 sec 543
      ' ( 1995) Supp (2) sec 724
H     "(2004) 2 sec 731
VIDEOCON INDUSTRIES LTD. v. STATE OF MAHARASHTRA 751
                [DIPAK MISRA, J.]

      (iii) Adjudication proceedings and criminal proceedings are               A
      independent in nature to each other;
      (iv) The finding against the person facing prosecution in the
      adjudication proceedings is not binding on the proceeding for
      criminal prosecution;
      (1') Adjudication proceedings by the Enforcement Directorate is
                                                                                B
      not prosecution by a competent court oflaw to attractthe provisions
      of Article 20(2) of the Constitution or Section 300 of the Code of
      Criminal Procedure;
      (vi) The linding in the adjudication proceedings in favour of the
      person facing trial for identical violation will depend upon the nature   c
      of finding. If the exoneration in adjudication proceedings is on
      technical ground and not on merit, prosecution may continue; and
      (l'ii) In case of exoneration. however, on merits where the
      allegation is found to be not sustainable at all and the person held
      innocent, criminal prosecution on the same set of facts and               D
      circumstances cannot be allowed to continue, the underlying
      principle being the higher standard of proor in criminal cases".
      19. Clari(ying the position, the majority observed that the yardstick
would be to judge as to whether the allegation in the adjudication
proceedings as well as the proceeding for prosecution is identical and          E
the exoneration of the person concerned in the adjudication proceedings
is on merits. In case it is found on merit that there is no contravention of
the provisions of the Act in the adjudication proceedings, the trial of the
person concerned shall be an abuse of the process of the court. On the
basis of the aforesaid principles, the majority proceeded to·analyse the
                                                                                F
factual matrix and analysed the finding recorded by the adjudicating
authority and opined when there is a finding by the Enforcement
Directorate in the adjudication proceeding that there is no contravention
of any of the provisions of the Act, it would be unjust and an abuse of the
process of the court to permit the Enforcement Directorate to continue
with the criminal prosecution.                                                  G
     20. We respectfully concur with the said view and do not perceive
any reason to disagree with the same and refer the pronouncement in
Rad/1esltya111 Kejriwal ('Jpra) for reconsideration by the larger Bench.
     2 I. Coming to the facts of the case, we find that the tribunal has
                                                                                H
752             SUPREME COURT REPORTS                         (2016) 2 S.C.R.


A arrived at a conclusion that the appellant cannot be held guilty for Section
  18(2) read with Section 18(3) of FER Act, 1973 and the advise of the
  Reserve Bank oflndia given in its letters dated 21.1.1992 and 18.2.1994
  deserve to be accepted as they are totally in consonance with legal
  provisions. The High Court, without an assail to the order passed by the
  tribunal, has adverted to the same and opined that it does not subscribe
B
  to the view expressed by the tribunal that Section 18(2) and 18(3) of the
  Act were not applicable to the transaction in question. The High Court
  could not have done that. We may note with profit that the High Court
  after stating that has reproduced paragraph 38 and (vi) and opined that
  the findings given by the tribunal are based on technical grounds and,
c therefore, the prosecution is liable to continue. As we perceive, the
  judgment of the tribunal is on merits, inasmuch as findings have been
  recorded after analysis of facts and the conclusion has been arrived at
  that the appellants have not violated the provisions of the Act. Jn such a
  situation, it cannot be said that it is a judgment rendered on technical
  grounds and, therefore, we are compelled to hold that the High Court
D
  has totally erred in law.
           22. In view of the aforesaid analysis, we allow the appeal, set aside
      the judgments and order passed by the High Court as well as by the
      learned Additional Sessions Judge and direct that the order passed by
      the learned Magistrate discharging the accused persons shall stand
 E    restored.
      Devika Gujral                                              Appeal allowed.