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Issues: Violation of principles of natural justice in freezing a bank account under NDPS Act
Issue 1: Violation of principles of natural justice in freezing the bank account under section 68F(1) of the NDPS Act The appeal was against the freezing of a bank account under the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS). The appellant argued that there was a violation of natural justice as no notice was given before the freezing order. The Competent Authority contended that there was no requirement to issue a notice before passing the freezing order under section 68F(1). The Competent Authority issued a show-cause notice to the appellant, setting a hearing date, but the appellant failed to appear or respond in time. The appellant's late reply did not address the merits of the case but only challenged the authority's power to investigate. The Tribunal held that the principles of natural justice were not violated as the appellant had an opportunity to show cause, which was not utilized. The freezing order was considered interim pending further investigation, and the appellant's failure to participate timely led to the dismissal of the appeal. Issue 2: Compliance with legal procedures and timelines in freezing the bank account The freezing order was made under section 68F(1) of the NDPS Act after the recovery of contraband material and financial investigations linking the account to illegal activities. The Competent Authority issued a notice to the appellant to show cause, but the appellant did not respond in time. The Tribunal noted that the Competent Authority followed the required procedures and timelines, providing the appellant with an opportunity to present their case. The Tribunal emphasized that the freezing order was interim, and further inquiries were pending. The Competent Authority was directed to complete the proceedings within a specified timeframe, subject to the appellant's cooperation. The appeal was dismissed, affirming the legality of the freezing order and the confirmation process under the NDPS Act. Judicial Precedent and Legal Principles The Tribunal referred to a previous case to emphasize the importance of natural justice in administrative decisions. It highlighted that while pre-decisional natural justice may not always be required for interim orders, the opportunity to be heard should be provided at a later stage. The Tribunal cited legal principles to justify the Competent Authority's actions and the appellant's failure to engage effectively in the process. The Tribunal's decision was based on the specific facts of the case, emphasizing the appellant's lack of cooperation and timely response as key factors in determining the legality of the freezing order.
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