Foreign Exchange Regulation Act 7 of 1947-Indian currency sought to be sent out of India in contravention of s. 8(2) of Act-Officer making search of accused's premises does not necessarily need to be corroborated- Account slips found in search and tallying with account books are good evidence-Firm held guilty of contravention of Act-Partner incharge of business of firm is guilty under s. 23C(1) of Acs unless he can prove that the contravention of the Act by the firm took place without his knowledge and he had exercised diligence to prevent the contravention-Review, justification for Reduction of sentence in case of vicarious liability, considerations for.

An air parcel declared by the consigner to contain rasogollas and other edibles was found to contain Rs. 51,000 worth of Indian currency notes. The parcel was booked to be sent from Calcutta to Hong Kong. The consignor's name as given on the parcel was found to be false and on investigation the suspicion of the customs authorities fell on the appellants two of whom were partners in a firm, the third being an employee of the firm. The office of the firm was searched. Certain incriminating documents including account slips and cash books of the firm were seized. In a complaint filed by the Assistant Collector of Customs against the appellants and their firm it was alleged that sending out money in Indian currency was prohibited by s. 8(2) of the Foreign Exchange Regulation 7 of 1947 and any attempt to do the same was punishable under s. 23B of the Act. The trial court acquitted the appellants but the High Court in appeal convicted them under s. 23(1A). By special leave appeals were filed in this Court. Judgment was delivered on August 18, 1970. Thereafter review petition No. 37 of 1970, was filed. A further judgment in respect of the contention raised therein as to the interpretation of s. 23C(i) was delivered on February 18, 1971.