Judgment :- The petitioner has filed the writ petition for issue of a writ of certiorarified Mandamus to quash the proceedings of the third respondent dated 27-1-1995, which is the consequential order of the second respondent in his proceedings dated 25-10-1994 and further to direct the respondents 2 to 4 not to interfere with the petitioner's peaceful possession and enjoyment of the movable and immovable properties situated at No. C-10, Housing Board Quarters, Todhunder Nagar, Saidapet, Madras-15. 2.The case of the petitioner is that the second respondent initiated proceedings against the petitioner for contravention of the Foreign Exchange Regulation Act, 1973 (hereinafter refer to as `the Act'). After full-fledged enquiry, he has passed an order on 4-11-1993, imposing penalty of Rs.18, 100/- for such contravention. A sum of Rs.10, 000/- was seized from the petitioner's house and that amount was adjusted towards the penalty and the petitioner was directed to pay the balance of Rs. 8, 100/-. 3.Against the said order of the second respondent the petitioner has preferred an appeal to the first respondent under Section 52 of the Act. Along with the appeal, he has also filed an application under Section 52(2) of the Act to dispense with the deposit of the balance of penalty amount as a condition precedent to file the appeal. The appeal is still pending and the first respondent has not passed any order on the application to dispense with the deposit of the penalty. While so, now the third respondent initiated action for the recovery of the balance penalty amount of Rs. 8, 100/-. The petitioner has filed this petition challenging the action of the third respondent. 4.Notice of motion was ordered on 17-2-1995. One Mr. Subramanian took notice for the respondents. The case was adjourned by 10 days. On 28-2-1995 when the case was listed, this court directed the office to print the name of Mr. U Rangarajan, Advocate and adjourned the case by one week. On 16-3-1995, the case was listed and at request it was adjourned by two weeks. The case was posted for final disposal on 3-7-1995. 5.Heard both the counsels. Mr. Rangarajan is appearing for the second respondent. The learned counsel for the petitioner contended that against the order of the second respondent, levying penalty, the petitioner has preferred an appeal on the file of the first respondent and the same is pending. The case was posted for final disposal on 3-7-1995. 5.Heard both the counsels. Mr. Rangarajan is appearing for the second respondent. The learned counsel for the petitioner contended that against the order of the second respondent, levying penalty, the petitioner has preferred an appeal on the file of the first respondent and the same is pending. The second proviso to Section 52(2) of the Act empowers the first respondent to dispense with the deposit of the penalty amount. The first respondent has failed to exercise their power vested under the statute by not passing any orders on the application filed by the petitioner under this provision. Hence, the petitioner is helpless and has no other forum except to approach this court for relief. 6.The Learned counsel for the second respondent contended that though the petitioner has preferred an appeal before the first respondent, in the absence of any order from the first respondent, either granting stay of the operation of the order of the second respondent or dispensing with the deposit of the penalty amount imposed by him it is always open to the second respondent to take action for recovery of the penalty amount imposed by him. He also cited an unreported judgment made inKamal Batchav.The Deputy Director ofEnforcement - (W.P.No. 14431of1993). Section 52(2)oftheActreadsas follows : "Section 52. Appeal to Appellate Board: (1) ........ (2) Any person aggrieved by such order may, after depositing the sum imposed by way of penalty under section 50 and within forty-five days from the date on which the order is served on the person committing the contravention, prefer an appeal to the Appeallate Board : Provided that the Appellate Board may entertain any appeal after the expiry of the said period of forty-five days, but not after ninety days, from the date aforesaid if it is satisfied that the appellant was prevented by sufficient cause from filing appeal in time.Provided further that where the Appellate Board is of opinion that the deposit to be made will cause undue hardship to the appellant, it may in its own discretion, dispense with such a deposit either unconditionally or subject to such conditions as it may deem fit.' 7.From the above provision, it is clear that the Appellate Authority is vested with the power to dispense with the deposit of the penalty amount as a condition precedent to entertain the appeal. The petitioner has filed the necessary application for dispensing with the deposit of the penalty amount. However, the first respondent has not passed any orders on the application filed by the petitioner, which would amount to failure of exercise of power. The first respondent ought to have passed an order either rejecting the application filed by the petitioner or allowing the same by dispensing with the deposit of the penalty amount. So long as the application is pending the petitioner's liability to deposit the same ........ in question. 8.The petitioner has filed this writ petition to quash the order of the third respondent dated 27-1-1995. So virtually this is not an order but it is only a direction issued to the petitioner by the third respondent, requesting the petitioner to deposit the penalty amount pursuant to the order of the second respondent dated 25-10-1994. As long as the petitioner is not able to get an order of stay from the Appellate Authority and produce the same before the third respondent, the third respondent is well within the jurisdiction in issuing the direction to the petitioner to deposit the penalty amount. Hence, there is no illegality in the proceeding of the third respondent dated 27-1-1995. But however, taking into consideration of the pendency of the appeal before the first respondent and the inaction of the first respondent in passing orders on the application filed by the petitioner under second proviso to Sec. 52(2) of the Act, I think, in the interest of justice some relief should be granted to the petitioner. 9.Hence, I direct the first respondent to dispose of the appeal filed by the petitioner against the order of the second respondent in his proceedings No. DA/MAS/15.94, dated 25-10-1994 within three months from the date of receipt of copy of the order in this writ petition. Till then, the third respondent is directed not to take any recovery proceedings against the petitioner in respect of the penalty levied by the second respondent in the above-said proceedings dated 25-10-1994. The writ petition is ordered accordingly.