Legal principle

Adjudication and prosecution may run together; exoneration on merits in adjudication ends a prosecution on the same facts.

Court decision

Adjudication and prosecution are independent and can be started simultaneously, and a decision in adjudication is not needed before prosecution. But where the person is exonerated in adjudication on merits, continuing the prosecution on the same facts would be an abuse of process. The appeal was allowed and the prosecution quashed.

Facts

The Enforcement Directorate began adjudication proceedings and a criminal prosecution under the Foreign Exchange Regulation Act on the same allegations. The adjudicating officer later dropped the charges on merits.

Key provisions

• Section 135 — Evasion of duty or prohibitions
• Section 137 — Cognizance of offences