Court quashes order due to lack of natural justice in property eviction, mandates fresh notice and personal hearing. The Court held in favor of the petitioner, finding that the notice for vacating the property lacked natural justice. The Court quashed the order and ...
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Court quashes order due to lack of natural justice in property eviction, mandates fresh notice and personal hearing.
The Court held in favor of the petitioner, finding that the notice for vacating the property lacked natural justice. The Court quashed the order and directed the respondents to issue a fresh notice, allowing the petitioner to present his case and evidence. A personal hearing opportunity was mandated, emphasizing the importance of upholding principles of natural justice.
Issues: Challenge to notice for vacating property based on money laundering allegations, violation of principles of natural justice, entitlement to opportunity under Prevention of Money Laundering Act, 2002.
Analysis: The petitioner entered into a lease agreement for a property, which was later the subject of a sale agreement. The sale deed was not executed by the owner, leading to a civil suit for specific performance. The suit was decreed in favor of the petitioner, but an appeal by the owner is pending. Subsequently, the property was attached under the Prevention of Money Laundering Act due to the owner's alleged involvement in money laundering.
The petitioner argued that the notice for vacating the property was issued without providing an opportunity, violating principles of natural justice. It was contended that as a bona fide purchaser, the petitioner was entitled to an opportunity under the Act. The respondents were criticized for not allowing the petitioner to submit a defense despite the decree in his favor and the pending appeal by the owner.
The respondents justified their actions, stating that the property was attached after confirmation by the Adjudicating Authorities under the Act, empowering them to take possession. They argued that the impugned order was valid and in line with the Act's provisions regarding opportunity of hearing.
The Court found that the petitioner, being an interested party claiming ownership through the sale agreement and the favorable civil suit decree, should have been given an opportunity to present his case and submit relevant documents. The Court held that the order to vacate the property lacked natural justice, quashing it and remitting the matter back to the respondents for fresh consideration.
The Court directed the respondents to issue a fresh notice to the petitioner, allowing him to provide explanations and evidence. A personal hearing opportunity was mandated, with instructions to complete the inquiry within a specified timeframe. The writ petition was allowed, emphasizing the importance of upholding principles of natural justice in such matters.
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