Delhi High Court Allows Legal Heir to Continue Appeal in Long-Delayed FERA Case

Court Condones 3621-Day Delay in Filing Impleadment Application Due to Unique Circumstances

In a significant ruling, the Delhi High Court has allowed Mohammad Rehmani to continue the appeal initiated by his late father, Abdul Hameed Rehmani, in a long-pending case involving alleged contraventions of the Foreign Exchange Regulation Act, 1973 (FERA). The appeal, which had remained dormant for several years, was brought back into the spotlight when the court condoned a delay of 3621 days in filing an application for impleadment as a legal representative.

The case dates back to a Show Cause Notice issued in June 2001 to the Abdul Kalam Azad Islamic Awakening Centre and its President, Abdul Hameed Rahmani, for alleged violations under FERA, which was later repealed by the Foreign Exchange Management Act, 1999 (FEMA). Following an adjudication order in February 2002 and subsequent legal proceedings, the matter was remanded for fresh adjudication by the Appellate Tribunal in July 2007. Both the Centre and Abdul Hameed Rahmani challenged this order, resulting in separate appeals before the Delhi High Court.

The appeal faced an unusual delay in proceedings, with interim orders granted in 2008 and 2009, but not taken up for hearing thereafter until March 2022. Abdul Hameed Rahmani passed away in August 2013, and it was only in 2023 that his son, Mohammad Rehmani, became aware of the pending appeal and filed for impleadment.

The court, presided over by Dr. Swarana Kanta Sharma, J., noted that statutory provisions under FERA and FEMA confer rights upon legal representatives to continue proceedings in the event of death or insolvency, emphasizing that such appeals do not abate with the death of the appellant. The court also addressed the absence of specified timelines for impleadment applications under these statutes, distinguishing them from general procedural laws.

In her judgment, Justice Sharma highlighted the exceptional circumstances of the case, including the prolonged non-listing of the appeal and the lack of awareness by the legal heir. The court found the delay justifiable, observing that the statutory framework itself supports the continuation of appeals by legal representatives.

The decision underscores the court's recognition of statutory rights and the importance of considering unique case circumstances, ensuring that legal proceedings are not unduly hampered by procedural technicalities. The appeal, along with pending applications, is scheduled for further hearing on November 10, 2025.

Bottom Line:

Statutory provisions under FERA, 1973 and FEMA, 1999 confer a right upon the legal representatives to continue pending proceedings, and delay in filing impleadment applications due to peculiar circumstances may be condoned upon sufficient cause being shown.

Statutory provision(s): Foreign Exchange Regulation Act, 1973 Section 55, Foreign Exchange Management Act, 1999 Section 43, Limitation Act, 1963 Articles 120 and 121, Code of Criminal Procedure, 1973 Section 394

Abdul Hameed Rehmani v. Special Director Enforcement Directorate, (Delhi) : Law Finder Doc Id # 2799532