Sanjaykumar Manubhai Soni S/O Manubhai Soni vs Adjudicating Authority(The Prohibition Of Benami Property Transactions Act 1988, Mumbai Unit Ah

Sangeeta K. Vishen, J

Mr.Rahul Sharma, learned advocate appearing for the petitioner, submitted that the proceedings under the Prohibition of Benami Property Transactions Act, 1988 (hereinafter referred to as "the Act of 1988") have been initiated. Order under Section 24(3) of the Act of 1988 was passed on 20.03.2019.

It is submitted that provisional attachment order under Section 24(5) of the Act of 1988 has been passed on 14.06.2019 followed by order under Section 24(4) of the Act of 1988. It is submitted that the respondent No.3, has made a reference under Section 24(5) to the respondent No.2 requesting for confirmation of the provisional attachment order dated 14.06.2019.

It is next submitted that on 19.10.2020, since the copy of the rejoinder filed by the respondent No.3 was not provided, a request was made and the respondent No.3 undertook to provide the copy to the petitioner and the hearing was fixed on 04.11.2020. It is submitted that till date, no order has been passed. It is further submitted that by virtue of the provisions of sub-Section (7) of Section 26 the authorities, are not empowered to pass any order inasmuch as, sub-Section (7) provides that no order under sub-Section (3) shall be passed after the expiry of one year from the end of the month in which the reference of sub-Section (5) of Section 24 was received.

It is submitted that at the most, limitation would expire in the month of February 2021.

In the interregnum, by virtue of the Finance Act, 2021, there is an amendment in the provisions of the Act of 1988 whereby, the competent authority authorized under sub-Section (1) of Section 5 of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 has been conferred with the powers of adjudicating authority to exercise, inter alia, jurisdiction under the Act. It is submitted after the change of adjudicating authority, the communication dated 13.08.2021, has been issued requiring the petitioner to make the submissions, failing which, the authority would proceed to pass the order.

Having regard to the submissions made by the learned advocate for the petitioner, issue notice, returnable on 15.09.2021.

It shall be open for the petitioner to make an application for adjournment. Let the authority consider the same.

Direct service is permitted.

Respondent No.2, is permitted to be served the notice through e-mode. The petitioner to file a note indicating the service of notice to the respondent No.2.