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TMI Blog1996 (9) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant if it be found that other monies have been deposited in the bank. The appellant may now draw the arrears of his remuneration from the company. - CIVIL APPEAL NOS. 7143-44 OF 1996 - - - Dated:- 9-9-1996 - S.P. BHARUCHA AND K. VENKATASWAMI, JJ. S.D. Parekh, N.H. Seervai, S.V. Mehta, B.V. Desai and P. J. Mehta for the Appellant. A. Subba Rao for the Respondent. JUDGMENT Bharucha, J. These are appeals against the judgment and orders of the Special Court constituted under the provisions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 ('the Act'), and they relate to the sweep of section 3(3) of the Act thereof. The principal judgment and order gave the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... honing off assets which could and must stand attached. The Special Court noted that even after 3 years monies which had been siphoned off had not been traced. It was thus evident that the notified parties or some of them had monies or assets which were lying in some undisclosed place. One of the simplest methods to bring such moneys into the open and start using them was to ostensibly render services to somebody else who then paid the notified party the purported income or for somebody to give to the notified party a gift or for a notified party to suddenly inherit some assets. This would become a method to defeat the object of the Act and could not be permitted. The Special Court then dealt with the provisions of section 3(3) and held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of sub-section (4), deal with property attached under sub-section (3) in such manner as the Special Court directed. Section 4(1), of the Act empowered the Custodian, if he was satisfied, after such inquiry as he thought fit, that any contract or agreement entered into at any time between the stated dates in relation to any property of the notified person had been entered into fraudulently or to defeat the provisions of the Act, to cancel such contract or agreement, whereupon such property stood attached under the Act. Sections 7,8 9 of the Act deal with the jurisdiction of the Special Court in criminal proceedings. Section 9A deals with the jurisdiction of the Special Court in civil proceedings relating to property that stands attached ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty which the notified person owned or was possessed of on the date of the notification but also all such property as he might acquire at any time thereafter. The intention to attach property which did not belong to the notified person on the date of the notification but which he might acquire later would, had it been there, have been clearly expressed and sub-section (3) would have stated that such property would stand attached the moment it was acquired by the notified person. The Act would also have made provision for a subsistence allowance or the like for the notified person. 7. It seems to us that to give to section 3(3) the wide meaning that has been ascribed to it in the judgment and order under appeal would render it perilously ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant is 'genuinely seeking release of an income which he is earning from his services', that the same is not subject to attachment under section 3(3) and that he is entitled to open a bank account for the purpose of depositing such income (and such income alone). The Custodian shall be entitled to inspect this bank account and take action in such manner as the deems fit against the appellant if it be found that other monies have been deposited in the bank account. 11. The appellant may now draw the arrears of his remuneration from the company. 12. It was sought to be argued on behalf of the appellant that the provisions of section 3(3) attached only such property as had a nexus to transactions in securities between the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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