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Section 31 FEMA Act 1999 - Decision to Be by Majority

Section 31 of the Foreign Exchange Management Act, 1999 explains how a difference of opinion is resolved when a Bench of two Members of the Appellate Tribunal does not agree on a point in a case.

What Section 31 of FEMA Provides

Section 31 - Decision to be by majority

If the Members of a Bench consisting of two Members differ in opinion on any point, they must state the point or points on which they differ and make a reference to the Chairperson. The Chairperson may hear the point or points or refer them for hearing by one or more of the other Members of the Appellate Tribunal. The disputed point or points are then decided according to the opinion of the majority of the Members who heard the case, including the Members who first heard it.

Meaning and Purpose of Section 31

Section 31 creates a statutory mechanism for resolving a split opinion within a two-Member Bench. A disagreement between the two Members does not by itself end the proceeding. Instead, the precise point of difference is identified and referred through the Chairperson so that the matter can be resolved by a majority.

The provision is therefore concerned with institutional decision-making in the Appellate Tribunal. It ensures that a case can reach a determinative view even where the original two Members disagree on one or more issues.

Key Terms Used in Section 31

Appellate Tribunal

Section 2(b) of FEMA defines the expression "Appellate Tribunal" by reference to the Appellate Tribunal referred to in Section 18. The statutory definition was substituted in 2017. For current legal research, the amended text of FEMA should therefore be consulted rather than older versions of the Act.

Bench

Under Section 2(d) of FEMA, "Bench" means a Bench of the Appellate Tribunal. Section 31 specifically addresses the situation in which a Bench consisting of two Members differs in opinion on a point.

Chairperson

Section 2(f) defines "Chairperson" as the Chairperson of the Appellate Tribunal. Under Section 31, the Chairperson receives the reference containing the point or points of difference and may hear them or refer them to one or more other Members.

How a Difference of Opinion Is Resolved

  1. A two-Member Bench differs in opinion on a point in the case.
  2. The Members state the specific point or points on which they differ.
  3. Those points are referred to the Chairperson.
  4. The Chairperson may hear the disputed points personally or refer them to one or more other Members.
  5. The point or points are decided according to the majority opinion of the Members who heard the case, including the original Members.

Legal Effect

The operative principle is majority decision. Section 31 does not provide for a fresh hearing of every issue merely because the original Bench is divided. Its text focuses on the identified point or points of disagreement and provides the procedure for obtaining the majority view on those points.

Research note: FEMA has been amended over time, including provisions concerning the appellate framework. Readers dealing with a pending matter should verify the current consolidated Act, applicable rules and relevant tribunal procedure before relying on an older printed or online version.

Related FEMA Provisions

Section 31 should be read with the provisions governing the Appellate Tribunal and its procedure, particularly Section 28 - Procedure and powers, Section 29 - Distribution of business amongst Benches, Section 30 - Power of Chairperson to transfer cases and Section 32 - Representation before the Tribunal.