TaxTMI 
TaxTMI 
2018 (10) TMI 2017
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....dings under the Prohibition of Benami Property Transactions Act, 1988 ("the Act"). 2. First, the authorities issued the Ext. P1 show-cause notice under Section 24 of the Act. The petitioner replied, putting forward its defence. Later, the 2nd respondent, the authority concerned, passed the Ext. P2 order; it rejected the petitioner's defence. Then to have the matter further processed, the same authority passed the Ext. P3 order, provisionally attaching the properties. The order seems to have been passed under Section 24 (4)(b) of the Act. Later, through the Ext. P4, the 2nd respondent placed the matter before the 3rd respondent, who is the adjudicating authority. Under those circumstances, the petitioner has filed this writ petition, ....
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.... 4. Sri M. Gopikrishnan Nambiar, the learned counsel for the petitioner Company has strenuously contended that the provisional attachment is with no statutory backing. According to him, Section 5, which speaks of confiscation, suffered an amendment on 01.11.2016. So any property acquired before 01.11.2016 must not be subjected to any scrutiny under the Act. In other words, be it provisional attachment or the possible eventual-confiscation, both fall foul of Section 5. 5. On the other hand, Sri Jayasankar V. Nair, the learned Central Government Counsel, has submitted that the writ petition is premature. According to him, the provisional attachment is an interim arrangement, only to preserve the property until the authorities completed th....
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....quires and calling for such reports or evidence as he deems fit and taking into account all relevant materials, shall, within a period of ninety days from the date of issue of notice under sub-section (1), xxxx (b) where provisional attachment has not been made under sub-section (3),- (i) pass an order provisionally attaching the property with the prior approval of the Approving Authority, till the passing of the order by the Adjudicating Authority under sub-section (3) of section 26; or (ii) decide not to attach the property as specified in the notice, with the prior approval of the Approving Authority 9. As the learned counsel has also drawn my attention to Section 27, I may as well examine that prov....
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....nality, no claim shall lie against the Government. 10. Section 5 and Section 27, as I can see, deal with confiscation. I am afraid, it is premature for this Court to examine the issue on the principles of confiscation. What has so far been effected is only a provisional attachment. And it was under Section 24(4)(b)(i) of the Act. Even otherwise, a judicial or quasi-judicial authority has inherent power to preserve all that affects the lis or adjudication: to maintain status quo until the dispute is dissolved or resolved. Here, in fact, the Ext. P3 order of provisional attachment has statutory backing under Section 24(4)(b) of the Act. 11. But the petitioner's grievance concerns the authority's alleged violation of Section 5 or....