9911796707
TMI Blog1994 (5) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... al of Offences relating to Transactions in Securities) Act, 1992 ('the Act') against the order dated 26-8-1993 made by the Special Court at Bombay in Misc. Petition No. 58 of 1993. By the said order the Special Court held that in relation to the transactions referred to and relied on by the appellant, it had no jurisdiction to exercise powers under the Act. 2. The appellant on various dates in July 1992 deposited with the Andhra Bank Financial Services Ltd., what are called inter-corporate deposits aggregating to about Rs. 55 crores. The deposits were to carry interest ranging from 21 per cent to 22 per cent. It would appear that the Andhra Bank Financial Services Ltd., had, in turn, invested large sums of money said to be in the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... belonging to notified parties. The petitioner's claim against the 2nd respondent does not fall within the purview of the jurisdiction of this Court. This Court has no jurisdiction over such claims or dispute. It is for the petitioners to adopt such proceedings as they may be advised in the normal civil or criminal courts. Petition disposed of on ground that this Court has no jurisdiction." 5. Shri Ramaswami Iyengar, the learned counsel for the appellant, urges that when financial transactions are so inextricably inter-woven, it is unrealistic to limit the identity of the 'notified person' so narrowly. What determines the jurisdiction of the Special Court, says the counsel, is not mere technical, distinctive legal entities but the composit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty under attachment. Section 3(3) provides that attachment of property, whether movable or immov- able, or both, belonging to the notified person becomes effective simul-taneously with the issue of the notification under section 3(2). It is with respect to this attached property that powers under section 11 could be exercised. We might, here, take a look at section 11: "Discharge of liabilities.-(1) Notwithstanding anything contained in the Code and any other law for the time being in force, the Special Court may make such order as it may deem fit directing the Custodian for the disposal of the property under attachment. (2) The following liabilities shall be paid or discharged in full, as far as may be, in the order as under:- (a)all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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