1. Direction sought to dispose of property and disburse proceeds to investors — Competent Authority permitted. (Para 2 )
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2010 Supreme(SC) 1349
SUPREME COURT OF INDIA
K.G. BALAKRISHNAN, CJI., S.H. KAPADIA, JJ.
Sonal Hemant Joshi and Others – Appellants
Versus
State of Maharashtra and Others – Respondents
Criminal M.P. No. 752 of 2010, Criminal Appeal No. 1597 of 2005
Decided On : 11-05-2010
Important Points
The court authorized a Competent Authority to dispose of a company's assets through prescribed procedures for disbursement to investors, provided that prior tax claims are duly considered.
Subject
Criminal Law - Asset Disposal
Headnote
(A) Criminal Procedure - Disposal of property by Competent Authority - Competent Authority permitted to dispose of a company by following specific procedure to disburse the amount to investors in the interest of justice - Prior claims of the tax department to be considered by the Competent Authority for appropriate directions. (Para 2)
Facts of the case:
Applicants sought directions to the Competent Authority for the disposal of a marketing company to ensure that the resulting funds are disbursed to investors.
Findings of Court:
The court permitted the Competent Authority to dispose of the company following the prescribed procedure and to disburse the amount to investors. It further directed that any prior claims by the tax department be considered by the authority while passing appropriate directions.
Issues: Whether the Competent Authority should be directed to dispose of specific property for the purpose of disbursing funds to investors.
Ratio Decidendi: In the interest of justice, the court allowed the disposal of property by a competent authority based on set procedures to ensure investors are paid, provided that existing tax claims are also adjudicated.
Result: Criminal MP is disposed of accordingly.
Facts of the case:
Applicants sought directions to the Competent Authority for the disposal of a marketing company to ensure that the resulting funds are disbursed to investors.
Findings of Court:
The court permitted the Competent Authority to dispose of the company following the prescribed procedure and to disburse the amount to investors. It further directed that any prior claims by the tax department be considered by the authority while passing appropriate directions.
Issues: Whether the Competent Authority should be directed to dispose of specific property for the purpose of disbursing funds to investors.
Ratio Decidendi: In the interest of justice, the court allowed the disposal of property by a competent authority based on set procedures to ensure investors are paid, provided that existing tax claims are also adjudicated.
Result: Criminal MP is disposed of accordingly.
Legal Category Hierarchy
Advocates:
Advocate Appeared:
For the Appellants : Mr. Harish N. Salve, Dr. Kailash Chand.
For the Respondents: Mr. Sanjay V. Kharde, Ms. Asha Gopalan Nair, Mr. Gaurav Agrawal.
Advocate Appeared:
For the Appellants : Mr. Harish N. Salve, Dr. Kailash Chand.
For the Respondents: Mr. Sanjay V. Kharde, Ms. Asha Gopalan Nair, Mr. Gaurav Agrawal.
Table of Contents
2. Disposal of property and disbursement to investors in interest of justice, subject to prior claims. (Para 2 )
3. Competent Authority may be directed to dispose of property and disburse proceeds to investors, subject to prior claims. (Para 2 )
4. Criminal MP disposed of; Competent Authority permitted to dispose of property and disburse to investors; supersedes earlier order. (Para 2 , 3 )
5. Under what conditions may a court direct a Competent Authority to dispose of property in a criminal miscellaneous petition?
The court may permit disposal of property and disbursement to investors in the interest of justice, subject to consideration of prior claims such as those of the Income Tax department. (Para 2 )
ORDER :
1. Heard learned counsel for the applicant, learned counsel for the State and also learned counsel for the accused.
2. The applicant/petitioner seeks a direction to dispose of the certain property by the Competent Authority. The Competent Authority is permitted to dispose of C.U. Marketing Company (described in Annexure A-2) by following the procedure (described in Annexure A-3) and to disburse the amount to investors accordingly in the interest of justice. If the Income Tax department has any prior claims, that also be considered by the Competent Authority and shall pass appropriate directions. This is in super-session of the order dated 18.11.2005 passed by this Court.
3. Criminal MP is disposed of accordingly.
