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        Case ID :

        1998 (10) TMI 511 - AT - FEMA

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        Mandatory thirty-day period under forfeiture law bars possession before service period expires. Section 19(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 was construed as granting a full thirty-day period ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Mandatory thirty-day period under forfeiture law bars possession before service period expires.

                                Section 19(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 was construed as granting a full thirty-day period after service of the forfeiture order for the affected person or any person in possession to surrender or deliver the property. The competent authority could not lawfully take possession before that period expired. The provision was treated as mandatory, preserving the statutory time to consider appeal and seek relief. Accordingly, restraint on implementation until expiry of thirty days from service of the section 19(1) order was upheld.




                                Issues: Whether the competent authority could take possession of forfeited property before the expiry of 30 days from service of the order under section 19(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976.

                                Analysis: Section 19(1) required the person affected, or any other person in possession, to surrender or deliver possession within thirty days of service of the order under that section. The provision was construed as giving a full thirty-day period from service of the section 19 order itself, and not as permitting possession to be taken earlier. The period was treated as mandatory, and the affected person was held entitled to the statutory time to consider appeal and seek appropriate relief.

                                Conclusion: The competent authority could not take possession before the expiry of thirty days from service of the section 19(1) order, and the restraint against implementation until expiry of that period was upheld.

                                Ratio Decidendi: Under section 19(1), possession of forfeited property cannot be taken until thirty days have elapsed from service of the order under that section.


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                                ActsIncome Tax
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