Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2001 (1) TMI 549

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... itioners then filed Ext. P4 explanation which was considered by the competent authority under the aforesaid Act. Ext. P5 order was then issued holding under Section 7 of the Act, that the right, title and interest of the petitioners being under the affected person (Saidalavi) are illegally acquired as defined under Section 3 of the Act and are liable for forfeiture. The petitioners then filed Ext. P6 appeal before the Appellate Tribunal constituted under the Act. As per Ext. P7 order, the Appellate Authority found that as regards the rights of the petitioners the forfeiture will stand, though it will not affect the rights or interests of Smt. Ami Umma, mother of the detenu. It is the correctness of the aforesaid finding that is impugned in the present Original Petition. 3. The learned Counsel for the petitioners submitted that the aforesaid property was actually obtained by the detenu in Ext. P8 family partition of 1955 included in items 12 to 18. The allottees of the said item included the detenu s brothers and sisters as well. As per Ext. P9 document, dated 3-4-1985 the brother and sister jointly released their right in favour of the detenu. As per another document dated 28-4 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... uced to show that the amount was kept by her for nearly 3 months. The competent authority also held that even if all the aforesaid amounts are taken into account, with regard to the balance of Rs. 5,040/- no explanation was offered by the petitioners. 6. The Appellate Tribunal generally agreed with the aforesaid findings. Regarding the contention that the sale proceeds obtained from Abdul Aziz was retained with the detenu, the Tribunal found that the transactions of sale and re-purchase are highly suspicious and that as the detenu was absconding from the place, it is highly improbable that he would keep the sale proceeds of the property in tact on his person. Referring to the loan obtained by Suharabi the Appellate Tribunal found that the supporting evidence was only photocopy of a small slip purported to have been issued by the State Bank of India. The Tribunal, however, noted that the impact of the conveyance to Abdul Aziz was that the purchaser became a co-owner of the property along with other sharer, who is the mother of the detenu and that viewed from that perspective, the sale and re-purchase cannot affect the rights of Ami Umma. 7. On hearing both sides, I find that the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... (b); (e) any holder (hereafter in this clause referred to as the present holder) of any property which was at any time previously held by a person referred to in clause (a) or clause (b) unless the present holder or, as the case may be, any one who held such property after such person and before the present holder, is or was a transferee in good faith for adequate consideration. 9. It is obvious from a reading of the aforesaid provision that Sections 2(a) and (b) are intended to be operative against the detenu whereas clauses (c) and (d) can take in even his relatives and associates. The scope and ambit of the aforesaid provisions and the extent to which the properties of the relatives and associates would be affected by applying the Act were considered by the Apex Court in Attorney General for India v. Amratlal Prajivandas and others (AIR 1994 S.C. 2179). The Apex Court considered the contention that relatives or associates of a detenu may have acquired properties of their own albeit by illegal activities; but, nevertheless, such acquisitions cannot be brought within the scope of Section 2 afore-mentioned. The Court held that SAFEMA is directed towards forfeiture of illega .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... l Aziz under Ext. P9 for Rs. 40,000/-. It is true that there is no definite evidence in the form of any affidavit or the like to show that Saidalavi, the detenu, retained this amount until the need for re-purchase arose. Nevertheless, in the absence of any other evidence to show the manner in which the said amount was spent, the petitioners are certainly justified in contending that a link can be established between the said consideration of Rs. 40,000 and the sum of Rs. 46,000/- which the detenu allegedly gave to the petitioners for re-conveyance. The difference of Rs. 6,000/- which is said to be the agricultural income derived from the various properties of the detenu between the years 1985 and 1987. It is not as though in villages every one maintains true and correct accounts of each and every item of agricultural income and in the circumstances, the petitioners cannot be found fault with for not producing evidence with regard to the details of acquisition of the said amount which, according to me, is only a small fraction of the total consideration. The same is the position with regard to the registration expenses and stamp duty. 13. As regards the sum of Rs. 10,000/- the onl .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e and whether such findings are consistent with the laws of the land. When a decision is vitiated by taking into account irrelevant considerations, or neglecting to take into account of relevant factors or is so manifestly unreasonable that no reasonable authority, entrusted with the power in question could reasonably have made such a decision, the judicial review of the decision making process can be exercised. If any authority is required on the point, reference may be made to State of U.P. v. Maharaja Dharmander Prasad Singh (AIR 1989 S.C. 997) and Sitaram Sugar Co. Ltd. v Union of India and others. (AIR 1990 S.C. 1277). 17. In the instant case, the Appellate Tribunal has not entered their decisions from the correct perspective and applying the findings of the Apex Court in Attorney General s case (AIR 1994 S.C. 2179) with the result that a property that was obtained by the detenu in family partition and which has been held by him for long by himself and by other family members has been directed to be taken away, merely because no accounts could be produced for some small amounts. This is not the purpose of the Act as evident from the features already mentioned supra. 18. In .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates