Section 28 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 28 says how the two appellate bodies of the Act go about their work. They are not bound by the Code of Civil Procedure, 1908, are guided by natural justice, and have the powers of a civil court on listed matters. Their orders are executable as a decree. Sections 29, 30 and 31 follow in the Act and are printed as omitted.
The Appellate Tribunal and the Special Director (Appeals) regulate their own procedure and are guided by the principles of natural justice (section 28(1)). For nine listed matters, including summoning witnesses, discovery, affidavits, review and ex parte orders, they have the same powers as a civil court (section 28(2)). Their orders are executable as a decree of a civil court (section 28(3) and (4)), and proceedings before them are deemed judicial proceedings (section 28(5)). Sections 29, 30 and 31 are omitted.
About this article
This article is based on the consolidated text of the Act consulted (amendments shown up to Act 50 of 2019). Later amendments should be checked. Section 28 is printed without a footnote of amendment, but the references to the "Special Director (Appeals)" sit in a chapter reshaped by Act 7 of 2017 (see our article on sections 18 and 20 to 27). Several provisions below refer to other laws; each is quoted as printed, and the reader should check the current law for the corresponding provision. For orders and appeals in practice, our legal consultation team can help.
Section 28(1): procedure and natural justice
The Appellate Tribunal and the Special Director (Appeals) shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908). They shall be guided by the principles of natural justice and, subject to the other provisions of the Act, have powers to regulate their own procedure.
Three points follow. First, the Code does not govern their procedure as such; its place is taken by natural justice, which in plain terms means hearing both sides and acting fairly. Second, the freedom to regulate procedure is "subject to the other provisions of this Act", so the forty-five day period in sections 17 and 19 and the hearing requirement in section 19(3) are not displaced. Third, the Act does not print procedural rules of its own; where it leaves a detail to rules, the hook is in section 46.
Section 28(2): the civil court powers
For the purposes of discharging their functions under the Act, both bodies have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit, in respect of these matters:
| Clause | Matter |
|---|---|
| (a) | Summoning and enforcing the attendance of any person and examining him on oath |
| (b) | Requiring the discovery and production of documents |
| (c) | Receiving evidence on affidavits |
| (d) | Subject to sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), requisitioning any public record or document, or a copy, from any office |
| (e) | Issuing commissions for the examination of witnesses or documents |
| (f) | Reviewing its decisions |
| (g) | Dismissing a representation of default or deciding it ex parte |
| (h) | Setting aside any order of dismissal of any representation for default, or any order passed ex parte |
| (i) | Any other matter which may be prescribed by the Central Government |
Printing point: clause (g) reads "dismissing a representation of default", as printed; the parallel in clause (h) speaks of dismissal "for default", and that wording is the likely sense. The list is exhaustive of what the Act itself gives, plus clause (i). The hook for clause (i) is section 46(2)(g): "the additional matters in respect of which the Appellate Tribunal and the Special Director (Appeals) may exercise the powers of a civil court". The Act prints no additional matter; check the rules made by the Central Government under section 46, as amended from time to time.
Clause (d) is made subject to sections 123 and 124 of the Indian Evidence Act, 1872. Those references are quoted as printed; the reader should check the current law for the corresponding provisions, and the Act says no more about them.
The power to review in clause (f) matters in practice: a party that believes a decision rests on a mistake has a route within the same body. The Act gives no time limit or ground for review; it does not say what the rules or the body's own procedure require.
Section 28(3) and (4): executing an order
An order made by the Appellate Tribunal or the Special Director (Appeals) under the Act is executable by that body as a decree of a civil court, and for this purpose each has all the powers of a civil court (sub-section (3)). Notwithstanding that, under sub-section (4) the body may transmit the order to a civil court having local jurisdiction, which shall execute it as if it were a decree made by that court.
So there are two routes to enforcement: the body acts itself, or it sends the order to a civil court. The choice is the body's. The Act does not say how that choice is made. A person who has been ordered to pay a penalty should read this with section 14, under which recovery of penalty orders has its own machinery; see our article on section 14.
Section 28(5): judicial proceedings
All proceedings before the Appellate Tribunal and the Special Director (Appeals) are deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860). The Appellate Tribunal shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974). Those references are quoted as printed; check the current law for the corresponding provisions.
Printing point: the second limb of sub-section (5) names only the Appellate Tribunal. The Special Director (Appeals) gets the same treatment from section 17(6)(b), which deems that officer a civil court for the same two sections, and section 17(6) also gives that officer the powers of section 28(2). Read the two together.
Sections 29, 30 and 31: omitted
The copy prints these with their old headings only and the note "Omitted by the Finance Act, 2017 (7 of 2017), s. 165 (w.e.f. 26-5-2017)". Sections 30 and 31 carry the shorter note "Omitted by s. 165, ibid."
| Section | Old heading as printed | Status |
|---|---|---|
| 29 | Distribution of business amongst Benches | Omitted (w.e.f. 26-5-2017) |
| 30 | Power of Chairperson to transfer cases | Omitted (w.e.f. 26-5-2017) |
| 31 | Decision to be by majority | Omitted (w.e.f. 26-5-2017) |
This article does not describe what those sections used to say.
Example. Kalpana Exports LLP, a hypothetical firm, is appealing before the Appellate Tribunal. The Tribunal can summon a bank officer and examine him on oath, require the firm to produce documents, and take evidence on affidavit. If the firm's representative fails to appear on a hearing date, the Tribunal may dismiss the matter for default or decide it ex parte, and may later set that order aside. If the Tribunal orders payment and the amount is not paid, the Tribunal can execute its order as a decree or send it to a civil court with local jurisdiction.
What the Act does not say
- It does not print rules of procedure for either body.
- It does not name any additional civil court matter under clause (i).
- It does not describe the old Bench arrangements of the omitted sections.
Need help with proceedings before the Tribunal?
How a hearing runs, what to file and when to ask for a review are practical matters that the Act leaves to the body and the rules. Our legal consultation team can help you prepare for a hearing.
Key takeaways
- Both bodies are outside the Code of Civil Procedure, 1908 and guided by natural justice.
- Nine civil court powers are listed, including review, ex parte orders and their setting aside.
- Additional matters may be prescribed, under section 46(2)(g).
- Orders are executable as decrees, or may be sent to a civil court.
- Proceedings are deemed judicial; the civil court deeming for the Criminal Procedure Code applies in terms only to the Tribunal here, and to the Special Director (Appeals) through section 17(6).
- Sections 29, 30 and 31 are omitted.
Read next
- Section 19: appeal to the Appellate Tribunal and pre-deposit of penalty
- Sections 18 and 20 to 27: the Appellate Tribunal and the Special Director (Appeals)
- Section 17: appeal to the Special Director (Appeals)
- Appeal Under FEMA: Appellate Tribunal
Disclaimer: Based on a consolidated text of the Foreign Exchange Management Act, 1999 showing amendments up to Act 50 of 2019, as consulted on 2 October 2026. Limits, forms, timelines and procedures are set by rules, regulations and Reserve Bank directions made under the Act; they change from time to time and are not covered here. Later amendments should be checked. This article is general information, not legal advice; check the official text before acting.