The Supreme Court declared Section 3(2) of the unamended...

The Supreme Court declared Section 3(2) of the unamended Prohibition of Benami Property Transactions Act, 1988 unconstitutional for being manifestly arbitrary and violative of Article 20(1) of the Constitution. Section 5 of the unamended Act was also held unconstitutional on the ground of manifest arbitrariness. However, the constitutional validity of the unamended provisions was not challenged, and the issue was not squarely addressed in the submissions. The Court allowed the review petition, recalled the previous judgment, and restored the civil appeal for fresh adjudication by a Bench nominated by the Chief Justice. Aggrieved parties in other proceedings disposed of based on the recalled judgment were granted liberty to seek review.

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