2001 (7) TMI 1330 - HC - Indian Laws

Summary

Issues Involved:
1. Jurisdiction of the Show Cause Notice.
2. Validity of the revocation of the Detention Order.
3. Applicability of SAFEMA following the revocation of the Detention Order.
4. Prematurity of the Writ Petition.

Issue-wise Detailed Analysis:

1. Jurisdiction of the Show Cause Notice:
The Writ Petition challenges the Show Cause Notice dated 7.9.2000 issued under section 6(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA). The petitioner contends that the notice lacks jurisdiction due to the revocation of the Detention Order under COFEPOSA. The court examines whether the revocation of the Detention Order impacts the jurisdiction to issue the Show Cause Notice under SAFEMA. The court finds that the revocation of the Detention Order, as per the proviso to section 2(2)(b) of SAFEMA, affects the jurisdiction to proceed under SAFEMA.

2. Validity of the Revocation of the Detention Order:
The Detention Order was revoked by the Principal Secretary to the Government of Maharashtra on 8.9.1999 due to undue delay in passing the order, as recognized in the case of co-accused by the Nagpur Bench of the High Court. The court examines the legality of this revocation and finds no extraneous considerations or mala fide exercise of power in the revocation. The revocation was based on recognized legal grounds, including undue delay, as upheld in various Supreme Court judgments.

3. Applicability of SAFEMA Following the Revocation of the Detention Order:
The court discusses the applicability of SAFEMA in light of the revocation of the Detention Order. It refers to section 2(2)(b) of SAFEMA, which specifies that SAFEMA proceedings can only be initiated if a valid Detention Order subsists. Since the Detention Order was revoked before the issuance of the Show Cause Notice, the court concludes that the SAFEMA proceedings cannot be initiated. The court emphasizes that the revocation order must be given its full effect, rendering the Show Cause Notice void due to lack of jurisdiction.

4. Prematurity of the Writ Petition:
The Central Government Pleader argues that the Writ Petition is premature as the petitioner approached the court without submitting an explanation to the authority. The court, however, focuses on the jurisdictional aspect of the notice rather than the procedural prematurity. Given the lack of jurisdiction due to the revocation of the Detention Order, the court finds the Writ Petition maintainable.

Conclusion:
The court allows the Writ Petition, setting aside the Show Cause Notice due to lack of jurisdiction. The revocation of the Detention Order invalidates the basis for initiating SAFEMA proceedings. The judgment underscores the importance of a subsisting and valid Detention Order as a condition precedent for invoking SAFEMA. The rule is made absolute in terms of prayer clause (a), and parties are directed to act on the authenticated copy of the order.