Threshold interference with benami show-cause notice declined, while time to object was extended and reconsideration directed.

A writ petition challenging a show-cause notice under the Prohibition of Benami Property Transactions Act was not interfered with at the threshold, as the Court declined final adjudication on the notice's validity at this stage. The petitioners were, however, granted further time to file objections, and the authority was directed to consider those objections in accordance with law, hear the petitioners or their authorised representative, and pass a reasoned speaking order. The authority was also directed to examine the applicability of the Supreme Court decision relied upon by the petitioners, including Union of India v. Ganpati Dealcom (P.) Ltd.

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Issues: (i) Whether the writ petition challenging the show-cause notice under Section 24 of the Prohibition of Benami Property Transaction Act, 1988 called for interference at the threshold; (ii) Whether the petitioners were entitled to an extension of time to file their objection and a direction for consideration of the Supreme Court decision relied upon by them.

Analysis: The writ petition questioned the jurisdiction of the issuing authority and relied upon the decision in Union of India v. Ganpati Dealcom (P.) Ltd. The Court did not enter into a final adjudication on the validity of the show-cause notice at this stage, but directed that the petitioners be given further time to respond. The authority was directed to consider the objection in accordance with law, hear the petitioners or their authorised representative, and pass a reasoned and speaking order while also considering the applicability of the cited Supreme Court decision.

Outcome: Interference with the show-cause notice was declined at the present stage, time was extended for filing objection, and the authority was directed to decide the matter afresh in accordance with law.

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