CALCUTTA HIGH COURT
ANIL K. SEN, S. N. SANYAL, JJ.
INSPECTOR GENERAL OF POLICE, CABINET (VIGILANCE) DEPT., GOVT. OF BIHAR
VERSUS
CENTRAL MANBHUM COAL COMPANY (P) LTD. AND OTHERS
A. F. O. O. No. 185 of 1983
Decided On : 10-8 -1983
CRIMINAL LAW AMENDMENT ORDINANCE, 1944 - SECTION 3, 4, 10 - ATTACHMENT - DURATION - EXTENSION - SUCCESSIVE APPLICATIONS - MAINTAINABILITY - INTERPRETATION.
Fact of the Case:
The State of Bihar filed an application under Section 3 read with Section 4 of the Criminal Law Amendment Ordinance, 1944 (the Ordinance) for attachment of properties belonging to the respondent, alleging commission of scheduled offences and acquisition of money and property thereby. An ad interim attachment was granted, and a show cause notice was issued. However, the respondent obtained a stay order from the High Court, and the attachment lapsed after three months due to the expiry of the statutory period prescribed under Section 10 of the Ordinance. The State filed a second application for attachment, which was dismissed by the District Judge on the ground of maintainability, holding that successive applications were not permissible and that the earlier proceeding was still pending.
Finding of the Court:
The High Court allowed the appeal filed by the State and set aside the order of the District Judge. It held that: * The Ordinance does not expressly or impliedly limit the exercise of the power of attachment under Section 4 to a single occasion. The power can be exercised on more occasions if justified by the circumstances. * Section 10 of the Ordinance prescribes a time limit only for the duration of an order of attachment, not for making an application for attachment or exercising the power to attach. * Successive applications for attachment should not be entertained if the object is to frustrate the statutory limit of duration of an attachment. However, this does not mean that the District Judge cannot entertain such an application as a court cannot entertain a particular appeal or application which is barred by limitation. * In the present case, the earlier proceeding was frustrated by the respondent, and the State was deprived of an opportunity to obtain an extension of the attachment order. Therefore, the second application was not intended to circumvent the statutory limit of duration of an attachment and was maintainable.
Issues: 1. Whether successive applications for attachment under Section 3 read with Section 4 of the Ordinance are maintainable. 2. Whether the expiry of the statutory period under Section 10 of the Ordinance bars the entertainment of a second application for attachment.
Ratio Decidendi: 1. The Ordinance does not expressly or impliedly limit the exercise of the power of attachment under Section 4 to a single occasion. The power can be exercised on more occasions if justified by the circumstances. 2. Section 10 of the Ordinance prescribes a time limit only for the duration of an order of attachment, not for making an application for attachment or exercising the power to attach. 3. Successive applications for attachment should not be entertained if the object is to frustrate the statutory limit of duration of an attachment. However, this does not mean that the District Judge cannot entertain such an application as a court cannot entertain a particular appeal or application which is barred by limitation. 4. In the present case, the earlier proceeding was frustrated by the respondent, and the State was deprived of an opportunity to obtain an extension of the attachment order. Therefore, the second application was not intended to circumvent the statutory limit of duration of an attachment and was maintainable.
Final Decision: The appeal was allowed, and the order of the District Judge dismissing the second application for attachment was set aside. The application was remanded to the District Judge for disposal in accordance with law.
Anil k. Sen, J.:- This is an appeal under S. 11 of the Criminal Law Amendment Ordinance 1944 (hereinafter referred to as the said Ordinance) preferred by the State of Bihar through its authorised authority, namely, the Inspector General of Police, Cabinet (Vigilance) Department. The order impugned is the one dt. Aug. 5, 1982, passed by the learned District Judge. Alipore, dismissing an application for attachment made by the appellant under S. 3 of the said Ordinance. It was so dismissed not on merits but on the point of maintainability. That application for attachment was undisputedly a second such application. earlier application having lapsed, and the only point which arises for our consideration in this appeal is as to whether a second such application could be entertained in law when the earlier one was rendered frustrated before it could be brought to its legitimate end. It would be necessary to refer to the facts in the background which may be set out briefly as follows :
2. On July 6, 1979, a first information report was lodged with a police station against the respondent No. 2 Kashab Narayan Banerji and others including some officials of the State of Bihar alleging commission of certain offences including some specified in the schedule to the said Ordinance in the matter of obtaining compensation money from the State of Bihar amounting to Rs. 1,48,60,950.00 in bonds and Rs. 65,11,250.14 in cash. An investigation was initiated over the said first information and the respondent 2 was arrested on April 2, 1980. The said respondent 2 filed a writ petition in this Court and obtained a Rule, being C. R. 2731 (W) of 1980. By an interim order obtained in the said Rule, further investigation was stayed. That petition, however, was dismissed by a learned single Judge of this Court whereupon the respondent 2 preferred an appeal wherein the appeal court on Nov. 10, 1981, passed an ad interim order allowing investigation to proceed but the appellant was restrained from taking any action on the result of that investigation except on further leave from the Court.
3. On a communication received from the income-tax authorities the appellant came to know that the money received by the respondent 2 by way of compensation was lying in different fixed deposits in different names including certain fictitious names. The appellant having reasonably believed that those fixed deposits as also a Calcutta property acquired by the respondent 2 were all acquired with the money obtained by commission of a scheduled offence, wanted to obtain an order of attachment under the provisions of the said Ordinance. Accordingly, the appellant obtained leave from the appeal Court to take out such an attachment. Such leave was obtained on Jan. 21, 1982, and on Jan. 22, 1982, an application under S. 3 of the said Ordinance read with S. 4 thereof was filed before the learned District Judge, 24 Parganas. The appellant prayed for attachment of the properties specified in the application belonging to the respondent No. 2. The learned District Judge directed issue of a notice and made an order for ad interim attachment but as the respondent 2 had already lodged a caveat through Mr. Bagchi, a lawyer, the learned District Judge made the following direction substantially on the prayer of the respondent 2 :
"Mr. Bagchi at this stage submitted that in order to ensure that the matter be speedily disposed of so that the respondents were not affected in the least and that they were prepared to file objection within a fortnight and they may be permitted to take copies of the proceedings with annexures from the Court and the matter may be finally fixed for hearing a month hence. It is accordingly further ordered that the petitioner shall supply copies of the application and the annexures thereto within 3 days to the respondents to be received by Mr. Bagchi on their behalf and the respondents if they accept such copies and enter appearance may file written objection by 13
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