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Fema / RBI

Members cannot be appointed part-time to Fema Tribunal

Case Law Details

TaxGuru Citation
2012 taxguru.in 759
Case Name
Union Of India And Others Vs S. Srinivasan (Supreme Court of India)
Date of Judgement/Order
Only available for paid members
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Rule 2 (1) (b) provides the qualification to be a Member. Needless to say, the same is in total accord with the Act. The first proviso to Rule 5 introduces part time Member. We have held that the said proviso, as far as it introduces the concept of part time Member, is contrary to the provision contained in the enabling Act. Section 46 of the Act nowhere envisages about the part time Members.

The second proviso, we have already mentioned, is an innovative one. Thereafter, we have at length referred to the qualifications for a person to be a Member who is eligible to be a district judge. Once we have held that there cannot be a part time Member, a person who is qualified to be a district judge can be a Member if he meets the criterion laid down in the pronouncements of this Court. They are strictly followed. We really perceive no justification for the introduction of the second proviso to bring in officers from the Indian Legal Service who are qualified to become district judges to be part time Members. If the officer satisfies the requisite qualification, he can be appointed as a Member. Therefore, in our  consideration, the second proviso has been incorporated to bring in only part time Members and  once the introduction of part time Members is treated to be ultra vires the Act, the rest part of the  Rule is absolutely redundant. To repeat at the cost of repetition, if the officer belonging to Indian  Legal Services is qualified to be a district judge, he can compete and be selected for the post of Member and that qualification is to be in accord with the pronouncements of law of this Court.

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