The provision prescribing a time limit for filing a petition for objection under Section 4(2) of the Act is mandatory and cannot be extended by the court. The Act does not provide for the power to condone the delay in filing a petition under Section 4(2) and expressly excludes the application of the provisions of the Limitation Act, 1963.

JUDGMENT

RUMA PAL, J.

The question raised in this appeal is whether the Special Court constituted under The Special Courts (Trial of Offences Relating to Transactions in Securities) Act, 1992 (hereinafter referred to as the Act) has power to condone the delay in filing a petition under Section 4(2) of the Act.

2. The object of the Act as stated in the Statement of Objects and Reasons is to deal with the situation created by large scale irregularities and malpractices in transactions in securities indulged in by some brokers in collusion with the employees of various banks and financial institutions. In particular, the Act seeks to ensure speedy recovery of the funds which have been diverted from banks and financial institutions to the individual accounts of brokers. The other objectives of the Act are to punish the guilty and to restore confidence in and maintain the basic integrity and credibility of the banks and financial institutions.

3. With these objectives in view the Act provides for the appointment of one or more Custodians to take action against any person involved in any offence relating to transactions in securities for the period after 1st April, 1991 upto and including 6th June, 1992. In terms of sub-section (3) of Section 3 of the Act, the Custodian may notify the name of the such person in the Official Gazette. From the date of such notification, any property moveable or immoveable or both, belonging to any person so notified stands attached under Sub-section (3) of Section 3. Such attached properties may be dealt with by the Custodian in such manner as the Special Court may direct.

4. The Special Court was established under Section 5 of the Act. It has the same jurisdiction as a Civil Court inter alia in relation to any matter relating to any property attached under Sub-section (3) of Section 3 of the Act as well as in relation to transactions in securities entered into during the aforesaid period in which the person notified is involved as a party, broker, intermediary or in any other manner (Section 9-A(1) ).

5. Sub-Section (2) of Section 4, (in so far as it is relevant) permits any person aggrieved by a notification issued under Sub-section (2) of Section 3 to file a petition objecting to the notification within 30 days of the issuance of the notification. The Special Court after hearing the parties may make such order as it deems fit on such petition. While dealing with such a case, the Special Court is not bound by the procedure laid down by the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice and, subject to the other provisions of the Act and of any Rules, the Special Court has the power and under Sub-section (4) of Section 9 to regulate its own procedure. Section 10(3) of the Act, provides for an appeal to this Court from any judgment, sentence or order of the Special Court within a period of 30 days from the date of such judgment etc. Under the proviso to Section 10(3) this Court has been empowered to entertain the appeal even after the expiry of a period of 30 days if the court is satisfied that the appellant had sufficient cause for not preferring appeal within the period of limitation. Section 13 provides that the provisions of the Act would have overriding effect over other laws. These, in short, are the provisions of the Act which are material for the purposes of this appeal.

6. The Act came into force on 6th June, 1992. The appellant was notified along with others under Section 3(2) on 20th November, 2001. On 23rd November, 2001, the Custodian informed the appellant that it had been notified under Section 3(2) of the Act and its properties stood attached with effect from the date of the notification. The appellant was requested to furnish the Custodian the details of its properties as on the date of the notification. In answer to the Custodians letter, the appellant asked for the reasons and circumstances which formed the basis of the Custodians decision to notify