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Appeals dismissed as Section 5 of Benami Property Transaction Amendment Act cannot apply retrospectively The HC dismissed appeals challenging the Appellate Tribunal's order regarding retrospective application of Section 5 of the Benami Property Transaction ...
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Appeals dismissed as Section 5 of Benami Property Transaction Amendment Act cannot apply retrospectively
The HC dismissed appeals challenging the Appellate Tribunal's order regarding retrospective application of Section 5 of the Benami Property Transaction (Amendment) Act, 2016. The court held that the SC decision in Union of India v. Ganapati Dealcom Pvt Ltd established that Section 5 provisions cannot be applied retrospectively. Despite a pending review petition by the Department before the SC, the court ruled that mere pendency of review proceedings cannot justify interfering with the Tribunal's order, as no stay was granted on the original SC judgment.
Issues involved: Challenge to common order by Appellate Tribunal for Prohibition of Benami Property Transaction Act, 1988, regarding retrospective effect of Section 5 of the Act as per Amendment Act, 2016.
Judgment Summary:
Issue 1: Retrospective application of Section 5 of the Prohibition of Benami Property Transactions Act, 1988, as amended by the Benami Transactions (Prohibition) Amendment Act, 2016.
The appellants challenged the common order of the Appellate Tribunal, arguing that Section 5 of the Act should have retrospective effect. The Tribunal relied on the decision of the Supreme Court in Union of India vs. Ganapati Dealcom P Ltd., holding that the provisions under Section 5 of the 2016 Act can only be applied prospectively. The Telengana High Court also observed that the Amendment Act of 2016 widened the definition of 'benami transaction' and cannot be applied to transactions before 01-11-2016. The Supreme Court dismissed an appeal on the same issue, stating that the matter is covered by the Ganapati Dealcom judgment. The High Court held that the Ganapati Dealcom judgment still stands, and the pendency of a review petition is not a valid ground to interfere with the Tribunal's order.
Issue 2: Review petition and pending decisions.
The Department filed a Review Petition before the Supreme Court regarding the Ganapati Dealcom judgment, which is pending adjudication. The High Court emphasized that the mere pendency of a Review Petition does not justify interfering with the Tribunal's order. Citing a Supreme Court decision, the High Court clarified that High Courts should decide cases based on existing law without waiting for outcomes of references or review petitions. The appellants were granted liberty to proceed further based on the outcome of the Review Petition filed before the Supreme Court.
In conclusion, the High Court disposed of the appeals, leaving it open for the appellants to act based on the Review Petition's outcome. No costs were awarded, and all connected Miscellaneous Petitions were closed.
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